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Extending Land Premium Scheme For SRA Projects Shows Govt’s Commitment Toward Fast Urban Development And Promoting Affordable, Inclusive Housing Initiatives

By: Domnic Romell President, CREDAI-MCHI

The decision by the Maharashtra Government’s Housing Department to prolong the Land Premium Installment Scheme until September 2025 marks a significant stride in tackling housing challenges encountered by economically marginalized segments of society. This targeted extension for SRA projects underscores the government’s resolve to promote affordable housing and foster inclusive urban growth. It’s estimated that around 150-200 ongoing schemes stand to benefit from the 10:10:80 plan, while over 400 existing schemes will smoothly proceed with renewals.

Background:

SRA projects play a pivotal role in Mumbai’s urban fabric by catering to the housing needs of slum dwellers through redevelopment initiatives. However, a major hurdle for these projects has been the substantial land premiums required, which have posed financial constraints for developers, thereby impeding redevelopment efforts.

Key Features of the Scheme:

Targeted Relief for SRA Projects: The extension of the Land Premium Instalment Scheme for SRA projects provides focused relief to developers, acknowledging the distinct challenges faced by slum rehabilitation endeavours. This underscores the government’s commitment to inclusive urban development, a cause that CREDAI-MCHI has consistently championed.

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Financial Flexibility: Similar to the broader scheme, the extension offers financial flexibility by enabling developers to pay land premiums in instalments rather than in a lump sum. This is particularly critical for developers operating in the affordable housing segment, where profit margins are slim, and access to capital may be limited.

Extended Timeline: Extending the scheme until September 2025 affords developers more time to fulfil their financial obligations related to land premiums. This facilitates better financial planning and smoother project execution, ensuring the timely delivery of affordable housing units.

Promotion of Affordable Housing: By alleviating the financial burden and incentivizing the timely completion of SRA projects, the scheme contributes to the promotion of affordable housing in Mumbai. This is crucial for addressing the city’s housing shortage and enhancing living conditions, especially for economically disadvantaged residents.

Impact and Implications:

Accelerated Redevelopment: The extension is poised to expedite slum rehabilitation and redevelopment initiatives, eliminating significant barriers to project implementation and catalysing the transformation of slum areas into habitable communities.

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Improved Housing Accessibility: The availability of affordable housing units through SRA projects enhances housing accessibility for the urban poor, enabling more families to transition to safer and more dignified accommodations.

Government Support: The extension underscores the Maharashtra Government’s proactive stance in addressing housing needs and advancing inclusive urban development, reaffirming its commitment to supporting initiatives that promote affordable housing and elevate residents’ quality of life.

In summary, the extension of the Land Premium Instalment Scheme for SRA projects signifies a significant stride towards advancing inclusive urban development and addressing housing challenges in Mumbai. Continued government support and collaborative efforts from all stakeholders will be pivotal in realizing a more equitable and sustainable urban future for the city.

*** Views expressed in this article are author’s personal and do not reflect the opinion ‘Realty & More’.

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