Contractors are expected to use new technology to speed up construction.
Maharashtra government, in a serious bid to give a much needed boost for affordable housing, mulls establishment of a special corporation with an initial corpus of Rs 3000 crore. Various undertakings including the apex financial institution for housing National Housing Bank, the Mumbai Metropolitan Region Development Authority, the Maharashtra Housing & Area Development Authority, the City & Industrial Development Corporation are expected to pump in Rs 500 crore each in the proposed corporation to be christened as the Maharashtra Affordable Housing Corporation. The government in a first phase proposes to develop about two lakh affordable houses at 20 cities and towns (10,000 tenements each).
A senior government officer told DNA,’’ As per the data available with the government there is a requirement of about 2 million affordable houses across the state. Of the proposed tenements, 30 per cent each can be earmarked for low income category, economically weaker section and middle income group. The Corporation will rope in the leading builders and developers as contractors who will be selected on the life cycle costing basis. The construction of these houses can be launched even in the green zone and no residential zone by providing 2.5 floor space index.’’
The officer said the contractors are expected to use new technology which can speedily complete the construction. Of the proposed tenements 30 per cent each can be sold to low income category, economically weaker section and middle income group.
Gulam Zia, Executive Director at Knight Frank India said the strategy sounds good but execution challenges must also be weighed alongside. ‘’Availability of land at the right spot has emerged as the biggest hurdle so far. Development capability too is hugely constrained with most of the developers struggling to remain in business due to economic and compliance issues,’’ he noted.