Turn co-developers and take up slum redevelopment schemes: SRA to lenders

Getting the institutions financing these projects on record will also ensure that these institutions will also push for these projects to be completed in a time-bound manner, an official said.

An SRA official said that the move is expected to expedite stuck and incomplete schemes for slum redevelopment. There are over 500 plus schemes of SRA in Mumbai alone, which are yet to see completion for various reasons for more than a decade.

Recently, a government resolution (GR) issued in December 2022 allowed a change in the nomenclature of financial institutions, who financed some of these projects from ‘co-developer’ to ‘lender’ in the Letter of Intent (LOI) issued by the SRA. The GR allowed bringing amendments in the LOI document to mention such institutions as ‘co-developer/lender’, and approve the implementation plan proposed by a capable institution appointed by them or by the SRA.

Meanwhile, Housing Minister Devendra Fadnavis announced that the stuck projects of the SRA will be taken up by the Maharashtra Housing and Area Development Authority (MHADA). The latter can take up incomplete projects and can either give the saleable components to a developer or undertake work on its own and sell those houses in the open market. However, an official notification regarding the same is yet to be issued else the SRA cannot hand over the projects to MHADA.