Under the PPP model, builders will get 2.5 FSI from the state government to construct affordable houses.

Mumbai: Even after facing flak for not constructing a single affordable house in Mumbai in last four  years, the Maharashtra government has now offered 2.5 FSI to private builders to construct “affordable houses” in Mumbai as well as other parts of the state.

The builders constructing houses on private land would be able to avail 2.5 FSI, which is currently 1.33 in Mumbai. The state government has decided to implement the Prime Minister Awas Yojana (PMAY) to Mumbai as well on Public Private Partnership (PPP) basis.

The housing department has proposed eight different models for the implementation of PMAY on the government as well as private lands.

It has offered some concessions to the developers who participate in the scheme and make affordable houses. “It is true that no affordable houses were constructed in Mumbai but with the new decision it is possible. We are roping in private developers for the same. Under the PPP model, the government is offering 2.5 FSI to the developer for constructing affordable houses on government as well as private land.

The economically weaker sections (EWS) and Lower Income Groups (LIG) will have to pay just 50 per cent of the housing price. The Centre will contribute Rs 1 lakh to Rs 1.5 lakh and the state Rs 1 lakh for the construction.

The MHADA will fix the price of the house as per its norms of affordable housing," said a senior officials from the housing department.

The houses can be constructed on green zone and no development zone areas but the FSI is restricted to one. The MHADA will decide private land price and RERA registration would be necessary for the developer under the scheme, the official said.

First six models are for the government land and two for the private land. In the first model, the government will offer land on confessional rates.

In second model, maximum area can be brought under construction and land exchange between the government and the private developer is possible.

In the third model, the government will make the land available for the builder and he will get revenue out of it for next 15 to 20 years. In the fourth model, the developer will get 40 to 50 per cent of the project price during the construction and remaining after the construction for next 10 years.

In the fifth model, the private developer and the beneficiary will directly deal with each other. The government will only make available the land. The sixth model suggested that ownership of the houses will remain only with the developer and the beneficiary will pay the rent, the policy said.

To construct houses on private land, the developer will be responsible for structure, construction, quality and funding. There will be a time-bound programme for the developer but the beneficiary can pay entire price in one or several instalments. In another model, MHADA will fix prices and declare beneficiaries. The developer will get his money from the beneficiary after handing over the houses to them.