MHADA cuts premium on redevelopment projects
June 29, 2020
Mumbai: The Maharashtra Housing and Area Development Authority (MHADA) has announced a series of measures to expedite the process of redevelopment of MHADA colonies across the city, as many of them are in dilapidated condition.
MHADA has agreed to make applicable reduced premium rates for existing ongoing redevelopment projects as well. The authority reduced the rate of premium for redevelopment projects in August last year.
However, they were applicable only to new projects. The real estate industry had been demanding the rates should be reduced for existing projects as well to ensure their timely completion.
Taking into consideration longstanding demand of developers, MHADA decided to reduce the premium for all existing projects where No-Objection Certificate (NOC) is yet to be issued by MHADA and where premium is already not paid.
The developers will have to pay premium that is linked to ready reckoner rates for getting additional FSI. Currently, this premium is between 20 percent and 28 percent for redevelopment of Low-Income Group (LIG) colonies, 45 percent and 56 percent for middle-income group colonies, and 60 percent and 71 percent for high-income group colonies.
MHADA has also proposed to allow payment of premium in staggered manner – 20 percent before getting all permissions and then 80 percent at the time of issuing of completion certificate.
MHADA has also proposed to charge premium only on FSI that is being used for the market sale component and make the entire FSI used for rehabilitation of existing tenement holders free of cost.
Speaking with Mumbai Mirror, Housing Development Minister Jitendra Avhad said: "The redevelopment of MHADA colonies is a matter of concern. Our endeavour is to provide the common man home at the earliest and that's why MHADA has taken a series of decisions to expedite the redevelopment process."
There are 56 colonies of MHADA spread across the city and they occupy nearly 1,600 acres of prime real estate. Around 76,000 families live in these colonies and, as most of these buildings were built between the 1960s and 1990s, they need urgent redevelopment.
Makarand Gadgil, Mumbai Mirror, Mumbai
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