Maharashtra releases draft of new housing policy, focuses on EWS, middle-class

Mumbai: With an eye on the upcoming Assembly election, the Maharashtra government on Friday released a draft of a new housing policy with a focus on economically weaker sections (EWS), lower income groups (LIG) and middle-income groups (MIG).

The state housing department has sought suggestions and objections from the stakeholders till October 3. The last housing policy was published in 2007. “The aim is to create vibrant and resilient communities by promoting affordable housing, sustainable urban development, and inclusive growth, where every individual can thrive,” the draft of the policy says.

The last housing policy was published in 2007. The latest one, titled Maharashtra Housing Policy – 2024, has the objective to address the state’s diverse housing needs and lays emphasis on affordable housing initiatives specifically for EWS, LIG and MIG.

The policy also touches upon redevelopment of old buildings, and slums redevelopment through public-private partnerships (PPP), inclusive housing in the private market, walk-to-work for industrial workers, green building initiatives, senior citizen living, working women, student housing, project affected persons, migrant workers, rural housing, etc.

“The policy outlines financial strategies to facilitate access to affordable housing loans and construction finance,” reads the draft. The state has been falling short of providing housing in urban areas by 10 lakh units.

As per the Report of the Technical Group on Urban Housing Shortage by the Ministry of Housing and Urban Poverty Alleviation, the urban housing shortage for Maharashtra during 2012-17 was estimated as 19.40 lakh and has been able to deliver around 9 lakh houses through various government schemes and authorities. They aim to deliver the remaining demand for 10 lakh homes by 2027.

To achieve this, the government through the housing agencies will commence the creation of land banks to develop affordable housing. “In the last two to three decades, due to lack of developable land with the state housing department, the supply of affordable housing has been reduced. Especially in metropolitan areas like Mumbai, if the government lands are made available to the housing department at ready reckoner rates, then a maximum number of affordable houses can be built.” The housing department has been asked to acquire land parcels with the state and union government departments of Maharashtra Industrial Development Corporation (MIDC), Mumbai Port Authority, Salt Department, etc.

Even plots alongside the recently opened Hindu Hridaysamrat Balasaheb Thackeray Samruddhi Mahamarg are likely to be taken into account to create affordable housing stock. About 10-15% of the land along this project has been proposed for affordable housing purposes. Not only will this expressway be looked at, but also other greenfield projects such as Delhi Mumbai Industrial Corridor, large infrastructure projects, new MIDC areas, etc.

On the concept of walking to work, it has been proposed that MIDC should reserve between 10 and 30% of land to house industrial workers. To create the housing stock, the PPP model can also be explored.

Additionally, to address the rental housing demand, certain tax incentives such as tax breaks, subsidies, and relaxation in regulation for private developers who will invest in affordable rental housing projects through PPP have been proposed. Hence, this policy is likely to have a direct bearing on the Dharavi Redevelopment Project undertaken by Adani Realty-led Dharavi Redevelopment Project Private Limited. The policy reads, “Designation of specific areas as rental housing zones with relaxed development norms and expedited approval processes to encourage the construction of affordable rental housing. These zones can be strategically located near employment hubs and educational institutions.”

Also, the proposal states to provide subsidies, grants and lower interest rates on loans to developers and non-profits that construct and maintain rental housing. On one hand, the government claims that it is short of land to create affordable housing stock, on the other hand, it has proposed to provide developers and non-profits with unused and underutilised government land “to reduce land acquisition costs”.

“In the case of the Dharavi slum redevelopment project, the government is planning to provide affordable rental housing to ineligible slum dwellers for the first time. A separate policy will be released for the same with detailed guidelines which include the formation of special purpose vehicles…” mentions the draft.