The policy will be placed before cabinet in a month, said housing minister.
MUMBAI: The state government is mulling a public private partnership policy under which it plans to acquire land parcels in the Mumbai Metropolitan Region (MMR) and develop low-cost homes, giving further impetus to its affordable housing programme.
The policy is likely to be presented before cabinet in a month’s time, state housing minister Prakash Mehta told reporters on the sidelines of CII event on Thursday. “There are large land parcels like 100 to 500 acres in the MMR region where the owners want to develop them but don’t have finances. Even if they develop the land on their own, they may get an Floor Space Index (FSI) of 1 or at the most 2.5 and will have to pay premium on that FSI. Now, under the new policy, we are proposing that we acquire these land parcels through MHADA and develop affordable homes and compensate the land owners,” Mr Mehta said.
He said that discussions on how to compensate these owners, are on. “It could either be by paying the beneficiary the cost of land as per ready reckoner rates or build homes for them as compensation. We are hopeful of being able to finalise it in the next 10-15 days and present the policy before cabinet for its approval,” Mr Mehta said.
The minister added that nearly 10 lakh affordable homes can be built once this policy is in place. He further said MHADA would be the overall planning authority for affordable housing development in the state.