Will the Maha housing policy achieve its goal of 35 lakh houses?

Mumbai, July 23 (NationPress) In a dedicated effort to realize its vision of “My House, My Right” by 2030, the Maharashtra government unveiled a new government resolution on the Housing Policy 2025 on Wednesday.

The government anticipates an investment of Rs 70,000 crore to implement this ambitious housing initiative, which aims to construct 35 lakh houses over the next five years.

Furthermore, the plan is to expand the MahaAwas Fund to Rs 20,000 crore, with an ultimate goal of building 50 lakh houses in the next decade. To realize this goal, current provisions under the Development Control and Promotion Regulations/Unified Development Control and Promotion Regulations and relevant institutional frameworks will be enhanced and modified as necessary.

Moreover, the government intends to encourage private sector participation through a variety of incentive-based measures.

A comprehensive program for slum rehabilitation and redevelopment will be undertaken, prioritizing the specific needs of low-income earners, senior citizens, women, industrial workers, and students.

The creation of district land banks from government and semi-government lands is also part of the strategy. A state-level portal will be launched shortly to provide information on housing developments through partnerships between the government and private sector, as well as through state-run enterprises.

This policy, which emphasizes housing for everyone, strives for a slum-free state by focusing on the economically weaker sections (EWS), lower income group (LIG), and middle income group (MIG).

It suggests affordable housing initiatives, redevelopment of outdated buildings to enhance living conditions, and transformation of slums through public-private collaborations.

Inclusive housing is promoted by harnessing resources generated by the private market, offering integrated townships with affordable housing and essential services, and ensuring housing for industrial workers close to their workplaces.

Affordable housing has been granted infrastructure status, allowing developers to benefit from External Commercial Borrowing (ECB) and Foreign Direct Investment (FDI) for their projects. It is also eligible for Priority Sector Lending (PSL) from banks and housing finance companies.

In line with the Walk to Work concept, 10% to 30% of land should be allocated for housing in MIDC (Maharashtra Industrial Development Corporation) regions. This land should be transferred to the relevant authority at the applicable acquisition price, enabling the authority to establish sufficient housing stock in these areas. The authority may also collaborate with private industries to provide housing for industrial workers using a PPP model.

The policy suggests reserving 10% to 15% of land suitable for housing projects near major infrastructure developments (adjacent to Samruddhi Highway and Delhi-Mumbai Industrial Corridor).

Additionally, it emphasizes green building initiatives to promote sustainable development through eco-friendly practices and certifications. The policy also addresses affordable housing for vulnerable groups such as senior citizens, working women, students, Project Affected Persons (PAPs), and migrant workers.

Housing for senior citizens focuses on unique safety and accessibility requirements, while housing for students and working women ensures safety and affordability. PAP housing offers solutions for those displaced by development projects.

Affordable rental housing schemes will cater to temporary populations, including migrant workers and students. The Affordable Rental Housing Complexes (ARHC) scheme under PMAY and rental housing projects under other state schemes will be utilized to provide rental housing for migrant industrial workers.

In light of escalating challenges posed by climate change, the policy promotes the construction of resilient housing aimed at climate change mitigation and adaptation. This housing is designed to reduce damage, minimize vulnerability, and lessen the impacts of adverse weather.

A range of incentives will be offered, including single-window clearance, 1% GST, floor space index (FSI) up to 2.5%, permission for commercial use of up to 10% of utilized FSI, concessions in development charges, waiver of Registration and Stamp Duty charges for operators, reduced Property Tax for the first ten years of operation, and a 100% deduction on profits from operating student housing.

For slum rehabilitation schemes on public land, these can be executed through a Joint Venture (JV) by establishing a Special Purpose Vehicle (SPV) and adopting the Dharavi model of 20:80.

For this purpose, the initiative will require the Slum Rehabilitation Authority (SRA) to form a special purpose company in which the SRA holds a 20% stake with voting rights.

To encourage the adoption of innovative construction technologies and cost-effective, environmentally friendly, locally available, and disaster-resilient materials, the government has provided incentives including income tax deductions for expenses related to innovative construction technology, reduced GST on materials, and a technology innovation grant.

To further support construction financing, the government plans to establish a state-level distressed asset fund, an amnesty scheme, and interest-free loans.

In addition, a state-level constitution fund will be created to assist affordable housing and housing projects by public authorities, public-private partnerships, as well as projects by private developers.