In order to expedite the construction of houses under Pradhan Mantri Awaas Yojana-Urban (PMAY-U), the Maharashtra cabinet has approved the joint venture policy between the Maharashtra Housing & Area Development Authority (MHADA) and private land owners.
Under this new policy, the private land owners will hand over the land to MHADA on which it will build affordable houses for economically weaker section (EWS) and lower income group (LIG) beneficiaries of PMAY-U.
Private landowners having more than 10 acres of land are eligible to participate in the scheme.
MHADA, which is the planning authority of the PMAY, will bear the cost of construction and also provide the necessary infrastructure in the areas, where these houses will come up.
The total floor space index (FSI) approved for this scheme is 2.5. FSI is a tool that defines the extent of construction permissible on a plot. It is the ratio of the buildable area to the total plot area.
“After these units are built and sold, the revenue received will be shared by MHADA and private land owner, wherein MHADA will get 65 percent, whereas private land owner will get 35 percent,” said a housing department official.
According to the experts, this new policy will not just fast track the PMAY-U scheme, but will also help address the problem of lack of land when it comes to building affordable homes.
“MHADA as well as other government bodies have almost exhausted their land parcels. This new policy is set to address this key issue. The supply should increase in the market and it will also be well distributed in different areas of the state,” said Ashutosh Limaye, national director – Research, JLL India.
Pradhan Mantri Awas Yojana (PMAY) is an initiative by government of India in which affordable housing will be provided to the urban poor with a target of building 20 million affordable houses by March 31, 2022.
It has two components: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G and also PMAY-R) for the rural poor.
The Maharashtra government has planned to build 19.40 lakh affordable houses under PMAY-U by 2022.The joint venture projects can be taken up in areas falling under all the 382 municipal corporations, councils and nagar panchayats, the Mumbai Metropolitan Regional Development Authority, the Pune and Nagpur Regional Development Authority, the CIDCO, the MSRDC, the Nagpur Improvement Trust and the Navi Mumbai Airport Influence Notified Area jurisdiction.