Maharashtra Government's New Policy to Provide Flats to Project-Affected Persons: A quick Analysis

In a significant move aimed at addressing the housing needs of Project Affected Persons (PAPs), the state cabinet has approved a policy that mandates the provision of flats to individuals displaced by ongoing infrastructure projects. This policy, heralded as a forward-thinking initiative, promises to mitigate the challenges faced by PAPs and bolster urban redevelopment efforts. CREDAI-MCHI, commends this decision and believe it will have far-reaching positive impacts on the real estate sector and the overall urban landscape.

Policy Overview and Implementation :?

The newly approved policy requires the BMC, Slum Rehabilitation Authority (SRA), and MMRDA to develop a comprehensive action plan to ensure an adequate supply of PAP flats over the next 15 years. These authorities must evaluate the demand for PAP flats within the next 3-5 years and enhance the Transfer of Development Rights (TDR) generation and utilization to make the project economically viable.

- The BMC alone needs 36,000 PAP units for shifting people hit by ongoing infrastructure projects.

- The policy stipulates those additional flats created in residential projects regulated by BMC, MHADA, will be allocated for PAPs.

- Over the last few months, protests in Mulund highlighted the urgent need for PAP accommodations, as residents opposed the resettlement plan involving 7,500 units near Kelkar College.

Benefits of the Policy:

?1. Increased Housing Supply: By mandating the construction of flats specifically for PAPs, the government ensures a steady supply of housing units, thereby reducing the strain on existing housing stock. This move is expected to accelerate urban redevelopment projects by providing clear resettlement options for displaced individuals.

2. Economic Viability: The policy's emphasis on improving TDR generation and utilization will make PAP housing projects more economically feasible. Developers will be incentivized to participate in these projects, ensuring that the necessary financial mechanisms are in place to support large-scale redevelopment.

3. Enhanced Coordination: A coordination committee will prioritize the availability of PAP flats, ensuring a streamlined process. This committee, involving various planning authorities, will oversee the implementation and address any challenges that may arise, facilitating smoother execution of the policy.

4. Developer Incentives: The developers will be allowed to amalgamate plans of various planning authorities, enabling them to adjust the premium payable to authorities by up to 50% on the units from the sale component. This flexibility is expected to attract more developers to engage in PAP housing projects, ensuring a robust supply of flats. This echoes the long pending demand of CREDAI-MCHI of rationalizing the premiums.

CREDAI MCHI applauds the government for this visionary initiative. It reflects a commitment to inclusive growth and sustainable urban development. With careful implementation and continued focus on the needs of PAPs, this policy can serve as a model for other states and contribute to the holistic development of our urban centers. CREDAI-MCHI is also thankful to the government for considering the long pending demand of CREDAI-MCHI on rationalizing the premiums and approval charges.