There is more cheer for those looking to buy affordable homes near the city. The Maharashtra government, on Wednesday, gave its in-principle approval to construct over 1 lakh dwelling units in the State under the Pradhan Mantri Awas Yojna (PMAY).
The State’s decision comes close on the heels of the announcements in the Union Budget to exempt affordable houses (measuring up to 60 sq metres) from service tax. The no service tax rule applies to affordable houses coming up under any scheme of the Central or State government, including the PPP Schemes.
28 proposals cleared
On Wednesday, the State Empowered Committee on construction of homes for the economically weaker section cleared as many as 28 proposals of the Maharashtra Housing Area Development Authority (MHADA), the nodal agency for implementing the PMAY.
These proposals were to build homes for first-time buyers with a monthly household income of not more than Rs 25,000, and those who are willing to buy units of not more than 30 sq metres or 322 sq feet. A subsidy of Rs 2.5 lakh for each EWS buyer is jointly shared by the Centre and the State.
The empowered committee of the State is headed by the Chief Secretary of Maharashtra.
Senior officials said that barring two project proposals for the construction of 1,000 dwelling units, each by the Pimpri Chinchwad New Town Development Authority and Pune Municipal Corporation, most of the proposals were for the construction of housing units in the Mumbai Metropolitan Region (MMR). “The in-principle approval was given in view of the still existing private reservations on government land. Once the issue of removing these reservations is addressed, work tenders for these proposals will be issued. This will take care of the housing shortage in the MMR region to a significant extent. We expect all the PMAY targets to be achieved in less than seven years,” said an official.
The MHADA is likely to float tenders next month to invite private players to construct these units all on government land. The approved proposals, meanwhile, would also be sent to the Centre, which is likely to fund over Rs 100 crore to the State for constructing a total of 2.09 lakh units under the PMAY in the next seven years. The State has already compiled 94 project proposals from different municipal corporations and Zilla Parishads for constructing affordable homes under the PMAY in Pune, Nashik, Nanded, Nagpur, MMR and Aurangabad.
The PMAY and the NDA government’s flagship scheme of Housing for All replaced the Rajiv Gandhi Awas Yojna in 2014, and promises credit subsidy and home loans at an interest rate of 6.5% for 15 years for buyers.
The decision comes close on the heels of the announcements in the Budget to exempt affordable houses from service tax
