THE CASH crunch in the real estate market has hit several redevelopment projects, including those for rehabilitating 2,000 tribals and 24,959 slum-dwellers living in the Sanjay Gandhi National Park (SGNP). Even after five extensions of the tender bid, there has been no response from developers.
While sources said that the state housing authority has decided to give 50 per cent of the project cost to the developer coming forward, MHADA officials declined to comment on the issue officially.
A senior MHADA official said that the authority does not have the money to pay the developer, so either the BMC will pay the money or the project executed by the BMC. BMC commissioner Praveen Pardesi, however, said that the project was still with MHADA and the civic body will see whether the state government approves it or not.
From 2018 to August this year, the Maharashtra Housing and Area Development Authority (MHADA) has extended the bid for the redevelopment projects at least five times. Sources said that the authority is likely to change the plan for the redevelopment. “Currently, the real estate market is reeling under a cash crunch because of which the bids have not received any response. Now, we have prepared another plan, in which the developer will get nearly 50 per cent of the project cost,” a senior official said.
Earlier, MHADA had decided to give the developer bagging the projects transfer of development rights (TDR). The total project cost is Rs 3,150 crore. “The developer could utilise the TDR elsewhere. This is because the redevelopment is in SGNP, where extra construction cannot be carried out as it comes under ‘no development zone’.”
Housing expert Ramesh Prabhu said that in the current real estate market, even if a builder gets good TDR and wants to sell it, it is very difficult to find buyers. This is a big reason why developers are not showing interest in the projects, he added.
According to an official, 2,000 units are to be built on 43 acres with a carpet area of 300 sqft for rehabilitating tribals. For rehabilitating slum-dwellers, 24,959 units are to be built on 47 acres. Both plots are located within the SGNP.