To Build Affordable Housing, Vibrant Gujarat Increases Money Supply

When a state is ranked among the best ones to do business, the challenges before it also grow. The state cannot afford to face cleanliness issues, housing supply crunch and large-scale slum clusters — all these factors will hit the state's brand image. Speaking purely from real estate point of view, the said state has to build faster and better. It is in this context we must examine Vibrant Gujarat's new method to increase its spend on building affordable houses in the state.

For Gujarat is known be to among the best state to do business in, a large number of people, including workers employed in small industries, migrate here, increasing the demand for low-cost housing.

To meet the demand in this regard, the state has chalked up a plan. Starting with an amount of Rs 700 crore, which includes Centre and state grants, Gujarat has created a Slum Redevelopment Premium Fund (SRPF). It has also asked municipalities across the state to generate funds on their own to give an impetus to affordable housing in Gujarat. The funds generated by the municipalities will be linked with the SRPF.

"The Ahmedabad Municipal Corporation has collected Rs 150 to Rs 200 crore as premium for slum redevelopment fund, which will be used for projects with low viability. This system will be replicated by civic authorities of Surat, Rajkot and Vadodara," The Economic Times quoted Ashwani Kumar, secretary & commissioner of the urban housing department, as saying.

For developers' benefit, the state will be offering transfer of development rights (TDA) and higher floor area ratio (FAR) to those who take up redevelopment projects.

It used efficiently, the SRPF fund would not only help Gujarat increase the supply of affordable housing and thus realising Prime Minister Narendra Modi's Housing for All by 2022 dream, it will also rid the state of increasing slum clusters. By doing this, it is not just the aesthetic beauty that Gujarat will be able to retain.