Maha govt releases draft of new housing policy, focuses on EWS, middle-class

Mumbai: With an eye on the upcoming Assembly election, the Maharashtra governmenthas released a draft of a new housing policy with a focus on economically weaker sections (EWS), lower income groups (LIG) and middle-income groups (MIG).

The state housing department has sought suggestions and objections from the stakeholders till October 3. The last housing policy was published in 2007.

"The aim is to create vibrant and resilient communities by promoting affordable housing, sustainable urban development, and inclusive growth, where every individual can thrive," the draft of the policy says.

"The disparity in income levels has resulted in a dual housing market where high-end housing is abundant, but affordable housing is scarce. To bridge this gap, the new policy should promote affordable housing projects and ensure that the benefits of economic growth are inclusive. Consequently, there is a pressing need for a comprehensive housing policy that addresses these changing demands, supports sustainable development, fosters resilience in the housing sector, and provides equitable access to housing for all residents of Maharashtra," it reads.

The policy proposes affordable housing initiatives, redevelopment of old buildings to improve living conditions and optimize land use and transforming slums through public-private partnerships. It promotes inclusive housing by capturing resources created by the private market, integrated townships that offer affordable housing with essential services, and industrial workers’ housing to ensure proximity to workplaces.

On the concept of Walk to Work, around 10 per cent to 30 per cent of land should be reserved for housing in MIDC (Maharashtra Industrial Development Corporation) areas. Such land should be handed over to the appropriate authority at the applicable acquisition price so that the authority can create adequate housing stock in such areas. The authority can also partner with private industries to provide housing for industrial workers in the PPP model. The policy proposes to reserve 10 per cent to 15 per cent of the land suitable for housing projects adjacent to the ambitious infrastructure projects (adjacent to Samruddhi Highway, Delhi Mumbai Industrial Corridor).

The policy focuses on green building initiatives to promote sustainable development through eco-friendly practices and certifications. To ensure inclusive development, the policy also attempts to address affordable housing for other vulnerable groups such as senior citizens, working women, students, Project Affected Persons (PAPs) and migrant workers.

Senior citizen housing addresses unique safety and accessibility needs, and community support, and housing for students and working women ensures safety and affordability. Project-Affected Persons (PAP) housing provides solutions for those displaced by development projects. Affordable rental housing schemes cater to transient populations, including migrant workers and students. Affordable Rental Housing Complexes (ARHC) scheme under PMAY and rental housing projects under other state schemes will be leveraged to provide rental housing for migrant industrial workers.

Amid burgeoning challenges due to climate change, the policy advocates the construction of resilient housing towards climate change mitigation and adaptation. Such housing is designed to minimize damage, reduce vulnerability and reduce the impacts of adverse weather conditions, the draft mentions.

The policy proposes a slew of incentives, including single window clearance, 1 per cent GST, floor space index (FSI) up to 2.5 per cent, commercial use permitted up to 10 per cent of utilised FSI, concession in development changes, waiver of Registration and Stamp Duty charges to the operators, reduced Property Tax for first ten years of operation and 100 per cent deduction on the profit of operating student housing.

In the case of slum rehabilitation schemes on public land, the slum rehabilitation schemes can be implemented in a Joint Venture (JV) by setting up a Special Purpose Vehicle (SPV) and adopting the Dharavi model of 20:80. For this purpose the initiative will require the Slum Rehabilitation Authority (SRA) to set up a special purpose company in which the SRA should hold a 20 per cent stake with voting rights.

In order to promote the adoption of new and innovative construction technologies and cost-effective, environment-friendly, locally available and disaster-resilient construction materials, the government has offered sops, including income tax deductions on expenses on innovative construction technology, reduced GST on materials and technology innovation grants.

To address issues about construction finance, the government proposes to set up a state-level distressed asset fund, amnesty scheme and interest-free loans. In addition, a state-level constitution fund will be set up to support affordable housing and housing projects by public authorities, PPP as well as projects by private developers.