Maharashtra to create stress fund for SRA projects

State to provide financial assistance to builders

The Maharashtra government will be setting up a stress relief fund of around ₹700 crore to ₹1,000 crore, in a bid to support developers undertaking Slum Rehabilitation Authority (SRA) projects in the city.

Chief Minister Uddhav Thackeray has approved the fund’s creation, State Housing Minister Jitendra Awhad said in a press conference on Thursday. “The proposal might be taken up in the next Cabinet meeting. The State government’s contribution will be around ₹700 crore to ₹1,000 crore, while the State Bank of India’s contribution will be bigger.”

Slew of relaxations

Mr. Awhad also announced relaxations in the slum redevelopment policy to ensure faster availability of houses for slum dwellers. Along with reduction in premium and deferral of payments, the timeline for approvals has been reduced at all stages to pave the way for a slum-free Mumbai. Mr. Awhad said the new premium structure would also ensure the clubbing of stalled SRA projects in city zones.

The revised timeline of approvals at various stages, including the letter of intent (LoI), would result in more than 50% time savings, compared with the previous structure followed by the SRA.

“The State’s decision to push SRA development has been taken after considering the city’s readiness to tackle pandemics like COVID-19 in the future. Mumbai has witnessed an alarming rise in cases across slums. A proper housing environment will be the key to safeguard lives and prevent any community spread of such diseases going forward,” he said.

The SRA has also capped the rental structure during the rehabilitation phase to ₹1.2 lakh and ₹96,000 per annum in the city and suburbs zones, respectively. As per the prevailing policy, applications for intimation of approval (IOA) were accepted after issuance of letter of intent but now it will be approved simultaneously and completion certificate (CC) issued within seven days of the application. Also, the approval of the file will be scrutinised at three levels only, compared to six previously.

“Earlier, the maintenance deposit of ₹40,000 per tenant was payable to the extent of 50% at the CC stage and balance at the occupation certificate (OC) stage. This has been relaxed to be payable at the OC stage of the building,” Mr. Awhad said.

All SRA projects will have health centres, an authorised committee to relocate religious structures; online approval (auto DCPR) mechanism and continuity in construction of rehabilitation buildings. Taking cognisance of stay orders by authorities on rehabilitation projects, the Minister said no authority except courts would be allowed to impose a stay on ongoing SRA projects.

“Earlier, Annexure 3 was required before LOI, which is now needed before CC. Whereas project proposals will be accepted in 15 days after relevant NOCs, excluding the NOC from the finance department,” Mr. Awhad said.