Mhada for more low-cost homes

Worried about the limited stock of low-cost housing in Mumbai, the Maharashtra Housing and Area Development Authority (Mhada) will announce two schemes on Thursday to boost the number of low-cost homes.

Worried about the limited stock of low-cost housing in Mumbai, the Maharashtra Housing and Area Development Authority (Mhada) will announce two schemes on Thursday to boost the number of low-cost homes.

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Under the first, Mhada will give its buildings one year to go for redevelopment, failing which it will step in and do the job. Of 3,701 Mhada buildings in Mumbai, only 116 have gone for redevelopment. The deadline is an attempt to speed up the process.

Under the second plan, builders undertaking revamp of Mhada buildings will have to hand over apartments instead of a premium.

Builders in the suburbs had an option of constructing low-cost houses and handing them over to Mhada or paying a negligible premium. All builders opted for paying premium, which was only 40 per cent of the Ready Reckoner rates of the area and utilised the space commercially.

The Mhada board will now insist on low-cost houses as is the rule in the island city. “We are not a profit-making organisation and our primary aim is to provide houses,” said Virendra Upadhyay, Mhada board member.

With only five acres of land available in its bank, Mhada believes redevelopment is the best way to increase housing stock.

Allwyn Das, senior member, Mhada (Mumbai board) said: "Most people cannot afford flats from private builders and their only hope is a low-cost Mhada flat. It is imperative that we explore ways to increase this," Das said.