Maharashtra May Use PPP Model To Acquire Land For Low-Cost Housing

To help the Centre meet its Housing-for-All-by-2022 target, the Maharashtra government may go for a public-private partnership (PPP) policy to acquire land in the Mumbai Metropolitan Region (MMR), meant for developing low-cost houses.

After the policy comes into effect, nearly 10 lakh affordable homes can be built in India’s financial capital where demand for housing is huge. It is also counted among the most expensive housing markets in the world.

"There are large land parcels like 100 to 500 acres in the MMR region where the owners want to develop them, but don't have finances. Also, even if they develop on their own, they may get an FSI (floor space index) of 1 or 2.5, and will have to pay premium on that. Now, under the new policy, we are proposing that we will acquire these land parcels and develop affordable homes and compensate the land owners," Housing Minister Prakash Mehta told media on May 17.

The Maharashtra Housing and Area Development Authority (Mhada), which is also the planning authority for projects under the Pradhan Mantri Awas Yojana, would help the state develop these affordable units.

The minister said the government was in talks with the farmers on the compensation matter.

"It could either be by paying the beneficiary the cost of land as per the ready reckoner rates or build homes for them as compensation. We are yet to come to a conclusion regarding the compensation and hopeful that we will be able to finalise it in the next 10-15 days,” the minister said.

“We will then present the policy before of the Cabinet for its approval," Mehta added.

With inputs from Housing News