Maharashtra Wants MHADA To Partner Private Developers For Affordable Housing Projects
“We will be equity partners and are willing to take risks”, Maharashtra’s Housing Minister Jitendra Awhad says at a CII event.
The Maharashtra government wants the state’s housing body to partner with private developers to build affordable housing projects.
“MHADA [Maharashtra Housing And Area Development Authority] will be happy to tie up with the private developers,” Housing Minister Jitendra Awhad said at Confederation Of Indian Industry. “We will be equity partners and are willing to take risks.”
MHADA will pick up equity in these projects and facilitate faster approvals along with providing additional support, he said, adding that the modalities of the policy are yet to be decided.
The model, according to Anuj Puri, chairman at Anarock Property Consultants, is a good combination and will benefit all the stakeholders involved—including homebuyers. “Developers will be delighted to partner with MHADA for this,” he said, adding that private developers will bring agility, efficiency and good design. “If MHADA is on board, the project will get credibility and it will be easier to get permissions and buyers will also have more assurance as the government agency is involved.”
Awhad said Emaar Properties PJSC has shown interest to develop projects in Mumbai Metropolitan Region. The meeting between the Dubai-based developer and minister is likely to take place within two weeks.
“The day I took charge I announced that I am pro-builder. I will do whatever it takes to build affordable homes,” the minister said. “So far, we have only been facilitators. Now I feel we need to change our approach.”
The state government is also planning to carve out a part of unused special economic zone land near Mumbai—India’s costliest property market—and use it to construct affordable housing projects, the minister said. “This provision was introduced by former Chief Minister Devendra Fadnavis in Maharashtra State Housing Policy & Action Plan, 2015. However, this draft policy was not tabled as a bill in the assembly. We are planning to take it forward.”