The BJP-led new government in Maharashtra has decided to provide five lakh affordable houses in Mumbai and in its extended suburbs in the next five years.
According to a senior cabinet minister, they have decided to construct as many houses in Maharashtra as possible. "Mumbai is main... where house prices have gone through the roof. We will ask developers to construct smaller houses and sell the same to people at reasonable rates. The rate in an extended suburb will be maximum Rs2,000 per sqft, while in the city Rs4,000 per sqft. In return, the developers will get additional FSI and tax exemptions from government. We have decided to make this a time-bound programme," said the minister.
He said before forming the government, they had made a detailed plan and consulted developers, urban experts and banks. "We had discussed the plan with all stakeholders, they had given their nod as well. We will ask developers to construct on larger plots so that more houses can be built," he added.
A senior state government official told dna that by promoting affordable houses, other supplementary industries, which depend on the construction industry, will also grow. "We want to see the economy rolling. It should not be stagnant. That will help increase the growth rate of Maharashtra as well as India. Recently, we made a presentation before the chief minister and his cabinet, they have agreed on it. Very soon, a meeting with prominent developers will be called for a final decision on this," he added.
Sunil Mantri, president of National Real Estate Development Council, an umbrella body of developers, welcomed the decision. "We are ready to tie up with the government for this. But the state should exempt us from tax and stamp duty. We pay almost 30% of the total cost of a house as taxes," he said.
Mantri added that a house is a social need and no one wants to stay in a rented place for long. "Due to unaffordability of houses, many industrial houses and IT companies were shifting base from Maharashtra, or were not keen to set up here. Once their employees start getting affordable houses, these industries will come back to Maharashtra," he said.
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