Maha Housing Minister’s Slum Rehab Fixed Rent Plan Opposed
Maharashtra Housing Minister Jitendra Awhad’s bid to fix the rent paid to slum dwellers living in transit during redevelopment between Rs 8,000 and Rs 12,000 has faced strong opposition, including some from within the NCP. About 370 SRA projects are presently stalled for want of liquidity. Earlie
Published -
Jul 23, 2020 6:05 AM
Maharashtra Housing Minister Jitendra Awhad’s bid to fix the rent paid to slum dwellers living in transit during redevelopment between Rs 8,000 and Rs 12,000 has faced strong opposition, including some from within the NCP. About 370 SRA projects are presently stalled for want of liquidity. Earlier this month, as part of the larger reforms in the housing sector and a bid to fast track slum redevelopment projects, Awhad had announced a slew of reforms. Among them, the transit rent to be paid by the developers had been fixed at Rs 12,000 per month for projects in Colaba-Bandra region, Rs 10,000 per month for Bandra to Andheri/Ghatkopar, and Rs 8,000 per month for projects in Andheri to Dahisar. However, the CM wasn’t happy with capping the rent and is likely to scrap the fixed rent plan. Commenting on Maharashtra ‘CM’s stance on the rent being fixed by mutual agreement between the developer and the slum dweller's society’ Manju Yagnik, Vice Chairperson, Nahar Group and Vice President NAREDCO (Maharashtra) said, “While it is still in the planning phase, the objective to fix the amount of rent paid for slum rehabilitation projects will not help in determining the actual market price. Earlier the state government had planned to fix the rent paid to slum dwellers living in transit during redevelopment between Rs 8,000 and Rs 12,000/month. Slum redevelopment takes years for completion, so fixed rent is not a feasible thought as the cost of alternate accommodation keeps altering year on year, more so rent is location specific and varies from place to place in a city like Mumbai. Redevelopment of slums is necessary to regularize housing in MMR, apart from this Mumbai being landlocked needs slum redevelopment to create space for other developmental projects, open spaces for recreational activities. Earlier steps announced by Maharashtra government like the creation of a stress fund to provide liquidity for completion of stalled SRA projects, speeding up of approval process, relaxation of premium payments for developers will help realize the government's dream of making Mumbai a slum-free city.”
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