MHADA to revamp rules to create more housing
07 Sep 2010
Concerned about its limited stock of low-cost housing in Mumbai, the Maharashtra Housing and Area Development Authority (MHADA) will announce two schemes on Thursday to boost the availability of such homes.
Under the first, MHADA will give its buildings one year to come up with their own redevelopment schemes, failing which it will step in and do the work itself. Of 3,701 MHAD buildings in Mumbai, only 116 have gone for redevelopment. The deadline is an attempt to speed up the process.
Under the second plan, builders undertaking revamp of MHADA buildings will have to hand over apartments instead of a premium. This practice is already being implemented in the city, and will now be extended to the suburbs.
Builders in the suburbs had an option of constructing low-cost houses and handing them over to MHADA or paying a negligible premium. All builders opted for paying the premium, which was only 40 per cent of the Ready Reckoner rates in the area, and utilised the space for commercial purposes. The MHADA board will now insist on low-cost houses as is the rule in the island city.
''We are not a profit-making organisation and our primary aim is to provide houses,'' said Virendra Upadhyay, a MHADA board member. With only five acres of land available in its bank, MHADA believes redevelopment is the best way to increase housing stock.
Allwyn Das, senior member, MHADA (Mumbai board) said, "Most people cannot afford flats from private builders and their only hope is a low-cost MHADA flat. It is imperative that we explore ways to increase this."
