LOW-COST HOMES MADE BY BUILDER, PRICED BY MHADA

LOW-COST HOMES MADE BY BUILDER, PRICED BY MHADA
Rajshri Mehta, Mumbai
DNA

The Maharashtra Housing and Area Development Authority (Mhada) has recently approved the first project under a new scheme which aims to raise the stock of public housing by partnering with private firms under the JNNURM. The Neptune Group will build 9,000 ground plus 4-storey structures, which will house flats of 300 sq ft and 500 sq ft for the economically weaker sections (EWS) and low-income group (LIG) respectively, on 57 acres land it owns at Ambivali, 6 km from Kalyan. There will also be 900 sq ft homes for the middle-income group (MIG), which will be sold in the open market.

According to the scheme, the developer, in lieu of giving his land free of cost for affordable housing, will get Rs 60,000-Rs1 lakh from the Centre for every tenement constructed for the EWS and the LIG. At least 25% of the total flats will have to be in the EWS and the LIG categories. The Mhada, as the implementing agency of the project, will finalise the rates for the sale of these houses.

The remaining 75% flats can be built for the middle and high-income groups and sold by the developer at market rates. The prospective buyers, apart from getting homes at affordable prices, can also avail a subsidy of 5% per annum on the interest charged in home loan. This subsidy can be availed only by those buying homes meant for the EWS (average monthly income up to Rs 3,300) and the LIG (between Rs 3,301 and Rs 7,300). The Neptune Group, on the other hand, will be rewarded with an infrastructure subsidy of roughly Rs 50 crore.

Mhada CEO Gautam Chatterjee said (before the election code of conduct came into effect), "We want to create a win-win situation for both the developers, who chip in with their land, and the buyers."

Rahul Chitale, director of Neptune Group, said that the company was preparing a detailed proposal. A second proposal, by the Shreepati Developers, who aims to develop around 18,000 flats on 120 acres at Khalapur near Karjat, is awaiting Mhada approval. In this project, 7,678 flats will be built for the EWS and the LIG.