Maharashtra looks at FDI in housing

November 2, 2006	(Be the first to rate this story!)  Loading ...
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Maharashtra chief minister Vilasrao Deshmukh on Wednesday, unveiled a draft on housing policy for the state.

The first-of-its-kind policy aims at de-regulating the housing sector by encouraging foreign direct investment (FDI), establishing a Housing Sector Regulatory Commission to safeguard the interests of various stakeholders, streamlining the building approval procedure, rationalisation of the development control rules, and creation of a dedicated housing infrastructure fund.

In addition, the policy proposes to encourage special township schemes outside the Brihanmumbai Municipal Corporation (BMC) limits by raising the floor space index from 0.5 to 1 in urbanisable zone.

Besides, the government proposes the movement of transfer of development rights beyond BMC limit in the Mumbai Metropolitan region, which will be linked to the property value index base.

Deshmukh told reporters that the government proposes to promote rental housing by making amendments in the Rent Control Act and ensure time-bound development of slums, and reconstruction of old and dilapidated buildings.

According to the new policy, carpet area will be the unit for all transactions, the chief minister said.

As far as the open land in the city is concerned, the focus will be to develop integrated townships, wherein the developer will have to construct houses and provide infrastructure as well. The government will discourage single building development and facilitate townships.

According to the policy, there will be a number of high-density pockets across the city, which will exclusively earmarked for the economically weaker sections.

“These pockets will have tenements measuring 180-300 sq ft, and there will be a ceiling on the price. It it will be ensured that the properties are sold only to the economically poor,” said Deshmukh. He also said the government land will be made available for lower income group housing.

The government will also enable the use of land as collateral security for mortgage finance. For this, co-operative institutions will be empowered to finance housing and construction. Special incentives will also be provided for lower income group housing.

Source: http://www.financialexpress.com

News Published Under:   Real Estate India, Mumbai |

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