Maha to promote PPP model to boost affordable housing

PUNE: Maharashtra may soon join the list of states that have been promoting the Public Private Partnership (PPP) model to boost affordable housing under the Pradhan Mantri Awas Yojana (PMAY). This model will involve private builders entering into a partnership with the government to construct affordable housing.

With guidelines expected from the Union government next week, the state may be set to boost the affordable housing segment through the model.

States such as Rajasthan, Madhya Pradesh, Gujarat, Orissa and others already have the model in place. Senior officials from the housing department told media that this will definitely give the necessary impetus to the sector which will see many private players making their entry into this segment.

Officials from the housing department said that the guidelines were to establish clarity of roles of the government and private players. “If it is a PPP model, there should be specific guidelines under the PMAY project. If it is spelt out clearly then private builders will come forward to participate in the projects. They would be clear on the benefits and the government would be clear about the title post completion of the project,’’ said a senior official from the state housing department.

The ‘housing for all’ initiative, formulated under the PMAY is to be implemented in 51 cities in the state. As part of the initiative, the government has charted out four approaches to provide low-cost housing – slum redevelopment on the existing plot, an interest subsidy scheme, creation of housing stock on a public-private participation model and beneficiary-led individual houses.

Recently, minister for housing and urban poverty alleviation Venkaiah Naidu had stated that there was poor response from private builders for the affordable housing schemes in almost all states. The government had granted infrastructure status to the segment in the Union budget 2017. Builder Sachin Kulkarni, who is into affordable housing, said that the model is not yet applicable in the state. “Since the state is yet to declare a dedicated affordable housing policy, the statement does not hold in the state. On the other hand the state has now started allocating land and funds for affordable housing in cities. These projects will be executed through MHADA or local governing bodies,’’ he said.

He said that they have been observing the PPP models of other states and as members of CREDAI they have been participating in some projects and have made presentations. “I have also been a part of the drafting of the state policy for affordable housing where we stressed on the PPP model. It’s in the ambit of the state and local government to implement the policy as well as the PPP model,’’ shared Kulkarni.

Officials from the housing department said that the project was delayed due to the election code of conduct. “The rules should come through next week and it would spell out the guidelines,’’ stated the official.

Another industry expert said that the market is down and if some announcements are made it can help the consumer as well as the developer. “Private builders will get into such projects if they are suitably compensated. In cases were the land is provided by the government, the model will be more successful,’’ said the expert.

Credits ET Realty

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