This makes Maharashtra the first state to allow cent per cent FDI in housing at a policy level. Other states have allowed it on a case-by-case basis
Housing in Maharashtra is set to get an unprecedented boost with the government deciding to allow cent per cent foreign direct investment in the sector. This makes Maharashtra the first state in the country to allow cent per cent FDI in housing at a policy level. Other states have allowed it on a case-by-case basis.
Simultaneously, the government will make it mandatory for developers to build 400 square-foot houses for the poor to take care of their needs.
Discussing the highlights of the draft housing policy, which has been cleared at the highest level, Chief Secretary RM Premkumar told DNA, "Those developing an area larger than 100 acres will have to build 400 sq ft flats on 20-25 per cent of the total developed area."
He said the existence of slum-dwellers is a reality that must be taken into account while drafting a practical policy of the kind that Maharashtra has lacked for a long time.
Among other incentives, the government will remove hurdles created under the Urban Land Ceiling (ULC) Act and do away with the need for non-agricultural certification.
"All necessary clearances and possible legal hassles have been taken and the policy will be brought into effect at the earliest," Premkumar said.
Members of the Mumbai Task Force when consulted felt that the concept of free houses must be done away with and the state should find a realistic way to handle the problem of dilapidated buildings.
But Premkumar said the state has no plan to repeal the ULC Act or Rent Control Act as these decisions have political consequences.
Senior government officials are upbeat about the policy, saying it will give poor people hope of having own homes.
The policy is especially significant in the aftermath of the July 26 deluge. Urban planners had blamed Mumbai's unplanned growth and issues like the city's housing policy and the lack of action in dealing with dilapidated buildings came under the scanner. By allowing cent per cent FDI and removing bureaucratic roadblocks, the new policy gives hope of a change for the better.
Building anew
100 per cent FDI
Projects over 100 acres, to build 400 sq-ft houses for the poor in 20-25% area
Govt will remove hurdles such as ULC Act and non-agricultural certification
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