Maharashtra’s new housing policy aims to bring affordability to EWS

In addition, the policy includes specific housing initiatives for demographic groups such as senior citizens, working women, students, and industrial workers. These schemes aim to be more inclusive, addressing varied housing needs of different sectors. The ‘walk-to-work concept’ for industrial workers is a notable addition, with the Maharashtra Industrial Development Corporation (MIDC) being asked to reserve 10-30% of its land for worker housing.

The policy’s goal of making homeownership more feasible also involves creating land banks through the acquisition of government-owned land, particularly in metropolitan areas like Mumbai. By providing affordable housing through ready-reckoner rates on government land, the policy aims to significantly increase the housing stock, benefiting lower and middle-income families.

While talking to the press, Additional Chief Secretary, Housing, Valsa Nair Singh said, “We have implemented policies to reserve a significant percentage of housing units for EWS and lower-income groups in all our projects. We have also introduced subsidy schemes and easy financing options to make homeownership more accessible. Furthermore, we are collaborating with private developers to incentivise the construction of affordable housing units, ensuring that these homes are built well and delivered on time”.

Slum-Free Maharashtra

The 2024 policy sets ambitious goals to continue their efforts on slum rehabilitation, aiming for a “Slum-Free Maharashtra.” It outlines plans for cluster redevelopment, self-redevelopment of ageing buildings, and slum rehabilitation, all of which are intended to create better living conditions for residents of informal settlements.

One of the key elements of the policy is to encourage redevelopment through public-private partnership. The Dharavi Redevelopment Project, spearheaded by Adani Realty, is expected to benefit from the policy’s provisions. The policy also proposes designating specific areas as rental housing zones to meet the growing demand for affordable rental housing, particularly near employment hubs and educational institutions.

To encourage these initiatives, the government plans to offer several benefits, such as faster approval processes, a reduced GST rate of 1 percent, higher floor space index (FSI) limits, and exemptions from registration fees and stamp duty.

Sustainability and Green Development

One of the most significant additions in the new policy is its focus on “sustainability and green building initiatives”. The new policy introduces measures to ensure that new housing projects reduce their environmental footprint. This includes adopting energy-efficient designs, water conservation technologies, and effective waste management systems.

“While the focus will be on sustainability and affordability, the government will also provide subsidies for the ones who choose to adopt the green building concept,” said Singh.

The policy also recognizes the potential environmental impact of rapid urbanisation, particularly in terms of land use. It suggests urban planning reforms that integrate housing developments with transport infrastructure, ensuring that cities remain sustainable as they grow. This will help reduce the environmental costs of long commutes and make life more convenient for residents.

To deal with the effects of changing climate, the policy aims to build resilient houses. “Building resilient housing is an important step towards climate change mitigation and adaptation. Such housing is designed to minimise damage, reduce vulnerability and reduce the impacts of adverse weather conditions,” the draft read.

Need for New Policy

According to the draft, Maharashtra faces a significant housing shortage, particularly in its major cities. The state aims to build 19 lakh homes by 2027, but challenges persist. These include inadequate infrastructure, limited financing options, and land acquisition difficulties. A comprehensive housing policy is essential to address these challenges, promote sustainable development, and ensure affordable housing for all. The state’s economic transformation and growing population further emphasise the need for a well-structured policy to meet the evolving demands of its residents.