Swapnil Rawal/Express India
Mumbai, Dec 21: With the developers treading carefully during the ongoing slump in the realty market, the Mumbai Metropolitan Region Development Authority’s (MMRDA) plan to construct rental tenements to replace slums in the city is taking a “marginal” hit.
The MMRDA has already sanctioned three proposals to construct as many as 75,000 tenements within the Mumbai Metropolitan Region. According to Metropolitan Commissioner Ratnakar Gaikwad, due to the current economic scenario, the number of proposals might have shrunk. “Even if there is an impact of realty slump, it is marginal. Perhaps, if we had started this project earlier, we would have got more proposals,” he said.
The project known as Rental Housing Scheme aims at providing transit accommodation to people until they find a permanent one. Under this scheme, the beneficiaries of the scheme would be given a 160 sq ft residential unit on a leave and licence basis for a period which will be decided by MMRDA. It will also decide the monthly charges, taking into account the location, residential unit, cost of construction, market conditions and other expenses.
The total FSI of four, including 25 per cent FSI for commercial use and 75 per cent for residential use, is allowed as per regulations for the schemes. The intending developers will construct and hand over the rental houses free of cost to the MMRDA in lieu of sale rights of commercial area and premium offered to it.
According to a developer, the major worry of the constructors is the sale of flats that are built on the remaining FSI. “There is an overall slowdown in the market. It had an impact on some developers. Talking specifically about the Rental Housing scheme, the developers are worried if this trend would continue. In that case, the developers may find it difficult to sell the flats that they will construct in lieu of tenements,” said a senior developer on condition of anonymity.
Gaikwad added, “Despite this, we hope that our target of one lakh tenements would be achieved by November-December 2009.” Presently, MMRDA has approved Dhanashree Developers to construct 35,000 houses on 50 acre in Tiwri Village near the Western Express Highway at Vasai. While Nirmal Group has offered to construct 35,000 tenements on a plot of land at Dombivali and Tanaji Malusare City (TMC), MMRDA in their joint venture is developing 6,000 tenements at Karjat.