Mumbai: Debt ridden builders shy away from government's SRA projects

Updated: Dec 27, 2017, 15:42 IST | A Correspondent

Barely any developers showing interest in government's scheme for funding SRA projects, two months after its launch

Even as the government comes up with schemes to finance cash-strapped developers to complete the construction of about 3,500 Slum Rehabilitation Authority (SRA) projects in the city, the builders hardly seem to be interested. It has been two months since the easy loan-granting scheme was launched, but there are less than five developers who have shown interest in it. In October, the state government had come up with a scheme to fund the construction of SRA projects through Shivshahi Punarvasan Prakalp Limited (SPPL). For this, it had also joined hands with State Bank of India to make loans easily available for the sale component. For developers, the stringent conditions for securing the loan would mean redrawing the entire sale component plan, which has turned out be the biggest roadblock for this scheme to take off.

According to the scheme, the developers have to construct 60 per cent of their sale component as affordable housing stock. Representational Image
According to the scheme, the developers have to construct 60 per cent of their sale component as affordable housing stock. Representational Image

The process
According to the scheme, the developers have to construct 60 per cent of their sale component as affordable housing stock. They also have to submit a detailed plan of the houses along with their cost-effectiveness to the SPPL for availing loans and a push for the project. An officer involved with the scheme explained, "35 per cent of 30 sqm houses and 25 per cent of 30 to 60 sqm of houses in the sale component will have to be constructed and sold by the developers at affordable rates."

Tedious task
The developers opined that redrawing the plans is a tedious task and there are a lot of checks and balances that need to be done before applying for this scheme. As for the cash-strapped developers, it is being said that they could show interest in this scheme, as they have to take care of slum dwellers in some way. However amidst all this, the slum dwellers end up with no houses despite their eligibility.
RG Salvi, general manager, SPPL, said, "We are receiving questions about the scheme from several developers who are coming to the office. We're also explaining to them in detail about what is needed for the same. We are hopeful that the scheme will take off soon, as it was launched for the betterment of the slum dwellers and benefit of the developers."

5 Number of developers who have shown interest in the scheme

Catch up on all the latest Mumbai news, current affairs from Mumbai, local news, crime news and breaking headlines here

Download the new mid-day Android and iOS apps to get updates on all the latest and trending stories on the go

Trending Video

Nita Ambani Takes IPL Trophy To Siddhivinayak Temple

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK