Mumbai….February 08, 2024…The extension of the land premium scheme for SRA projects underscores the government’s commitment to accelerated urban development and inclusive housing initiatives, as highlighted by Domnic Rommel, President of CREDAI-MCHI, and the apex body of the real estate industry in the Mumbai Metropolitan Region (MMR).
The decision by the Maharashtra Government’s Housing Department to extend the Land Premium Instalment Scheme for Slum Rehabilitation Authority (SRA) projects until September 2025 is a significant move towards addressing housing challenges faced by economically disadvantaged sections of society. This tailored extension specifically for SRA projects reflects the government’s dedication to promoting affordable housing and inclusive urban development. Approximately 150-200 schemes, currently in progress, are set to benefit from the 10:10:80 plan. Additionally, over 400 existing schemes will face no issues with renewals.
Domnic Romell, President, of CREDAI-MCHI, the apex body of the real estate industry of the Mumbai Metropolitan Region (MMR), said, “The extension of the Land Premium Instalment Scheme for SRA projects represents a significant step towards advancing inclusive urban development and addressing housing challenges in Mumbai. Continued government support and collaborative efforts from all stakeholders will be crucial in realizing a more equitable and sustainable urban future for the city”.
SRA projects play a vital role in Mumbai’s urban landscape by addressing the housing needs of slum dwellers through slum area redevelopment. However, one of the major obstacles to these projects has been the requirement of substantial land premiums, posing financial constraints for developers and hindering redevelopment progress. Extending the Land Premium Installment Scheme for SRA projects provides targeted relief to developers, recognizing the unique challenges faced by slum rehabilitation initiatives. This underscores the government’s commitment to inclusive urban development, a cause consistently advocated by CREDAI-MCHI.
Similar to the broader scheme, the extension offers financial flexibility by allowing developers to pay land premiums in installments rather than a lump sum. This is crucial for developers in the affordable housing segment, where margins are thin, and access to capital may be limited. The extension until September 2025 offers developers more time to fulfill their financial obligations related to land premiums. This allows for better financial planning and smoother project execution, ensuring timely delivery of affordable housing units.
By easing the financial burden and encouraging timely completion of SRA projects, the scheme contributes to promoting affordable housing in Mumbai, crucial for addressing the city’s housing shortage and improving living conditions, particularly for economically disadvantaged residents. The extension is expected to accelerate slum rehabilitation and redevelopment initiatives, removing significant barriers to project implementation and transforming slum areas into livable communities.
The availability of affordable housing units through SRA projects enhances housing accessibility for the urban poor, allowing more families to transition to safer, dignified accommodations. The extension demonstrates the Maharashtra Government’s proactive approach to addressing housing needs and promoting inclusive urban development, reaffirming its commitment to supporting initiatives that facilitate affordable housing and enhance residents’ quality of life.