Autonomous corp for SRD scheme

MUMBAI, May 13: The Sena-BJP government is setting up an autonomous corporation to implement the Slum Redevelopment Scheme SRD. The scheme...

MUMBAI, May 13: The Sena-BJP government is setting up an autonomous corporation to implement the Slum Redevelopment Scheme SRD. The scheme, one of Sena8217;s most widely publicised poll promises, has failed to take off due to the sluggish real estate market and the government has managed to build only around 2000 house as against the target of 10 lakh.

The autonomous corporation, which will be a joint venture between the Maharashtra Housing and Area Development Authority MHADA and the Mumbai Metropolitan Region Development Authority MMRDA, will be registered under the Companies Act to enable it to raise funds on its own. 8220;Since there is absolutely no response from the builders to the scheme, now this proposed company will act as a developer. Financial assistance in the form of share capital will come from MHADA and MMRDA,8221; a senior official told Express Newsline.

This appears to be a last-ditch effort on the government8217;s part to kick-start the scheme which has become an embarrassment for it oflate. Soon after the alliance government was sworn-in, it had appointed a high-level committee headed by Dinesh Afzalpurkar, then the Chairman of the Mumbai Port Trust, to recommend measures to implement the free housing scheme. One of the main recommendations of the Afzalpurkar Committee was to grant additional Floor Space Index FSI to builders for commercial exploitation, in lieu of which they would build houses for the slumdwellers. Though the alliance government had expected large-scale participation from the builders, it had failed to anticipated the fall in real estate real prizes.

As the prices of properties plummeted, builders started withdrawing from the scheme citing procedural difficulties. Though the government later amended the Development Control DC rules and also the Maharashtra Housing and Area Development Act, it did not help.

Then in its desperation to make good its poll promise it decided to change its housing minister. Sureshdada Jain, who replaced Chandrakant Khaire in the HousingMinister, did his best to rope in builders and even leading industrial houses. He even toured several countries to secure participation of non-resident Indians. But all his efforts failed 8211; Mumbai8217;s real estate market was showing no signs of recovery and with it the fate of the SRD scheme looked sealed.

However, the autonomous infrastructure development corporation, as it is being referred to in Mantralaya corridors, may provide a new momentum to the scheme. However, senior officials of the Housing Department are still doubtful of the scheme8217;s success. 8220;The land prices in the metropolis have come down. Now with the Centre8217;s decision to scrap the Urban Land Ceiling Act, the prices are expected to touch rock bottom. Under such circumstances, it will not be possible to implement the scheme within the frame work of Afzalpurkar Committee8217;s recommendations. The government will have to pump in at least Rs 2,000 crore. Otherwise, it will be difficult for the alliance to face the next assembly elections,8221; a topofficial said.