The State Government has announced that it will setup a special funding window for stalled slum redevelopment projects across Mumbai. Announcing the move, Housing Minister Jitendra Awhad announced that all stalled projects under the Slum Rehabilitation Authority (SRA) will be funded. The minister added that the Chief Minister has already provided approval and that it is now pending approval from the Centre.
“The money (for the stress fund) will be raised through state-run Shivshahi Punarvasan Prakalp Limited (SPPL), while the distribution and management of the fund will be done by a bank,” Awhad said. He added that the State is looking to invest nearly Rs 700 to Rs 1,000 crore on this package.
It’s worth mentioning that around 1,351 slum projects are at varying degrees of completion while around 370 slum redevelopment projects have stopped completely. Given that a large number of Mumbai’s population (nearly 50% as per some estimates) live in slums, it’s somewhat surprising that the authorities haven’t acted with haste on this matter. However, the coronavirus outbreak in the city this year has severely affected most civic and state-authorized projects.
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As The Indian Express points out, the BJP state government had proposed the establishment of an alternate investment fund for the redevelopment of SRA projects, though it didn’t get the nod from the Centre.
Individual developers have been stuck at limbo given the number of halted projects, and the State Government has extended their premium due dates that are payable to the SRA by 9 months. The authorities are also said to be taking measures to reduce the upfront costs of slum rehabilitation projects.
CREDAI-MCHI has welcomed this announcement made by Housing Minister, Government Of Maharashtra for SRA, "Hon’ble Housing Minister, Shri Jitendraji Awhad has announced a slew of measures to kickstart the SRA projects in the State. We welcome the steps taken which will go a long way to offer Affordable Homes to Mumbaikars. The realty sector, especially the projects under SRA scheme, was facing monetary issues and Covid-19 has worsened the situation. This stress fund will provide some respite to the builders".
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