A thriving private bidder effecting an inexpensive residential project within the ambit of the Pradhan Mantri Awas Yojana (Urban) is allowed to sell half the number of homes under the scheme at a price of his preference, on the other hand, the remainder will have to be sold at the price which the government agency decides. A Floor Space Index (FSI) of 2.5 will be the other significant appeal for the developer of the project to be executed on Public Private Partnership (PPP) principle.
A 64-page government resolution, released recently, has elaborate directives for the project. It defines the procedure of bidding, choice of the developer, tender record and organizations that are to function as nodal agency supervising every scheme in 382 urban areas. The PMAY, introduced in 2015, has fixed year 2022 as time line for all inexpensive housing projects.
Within the ambit framework of this scheme, the total number of homes to be constructed are 19.40 lakh. People listing for allotment of home corresponding to the financially lower segment would be entitled to a total subvention of Rs 2.5 lakh, out of that Rs 1.5 lakh will be provided by the Centre and remainder, by the State. In Vidarbha, 3, 07, 831 houses are set to be constructed. A significant share or 1.21 lakh will be in Nagpur district.
Also mentioned in the GR is that incentives shall be provided to schemes formulated under PPP on private and government plot: Charges for collaborative computation of land governed by PMAY projects will only have to pay 50% of the prevalent value. Each EWS home will attract a stamp duty of Rs 1,000 only for first instrument implemented for the purpose of allotment of residential premises apportioning till an area of 30 sq. mt. to the person hailing from the EWS category.
Other associated subsidies and incentives in line with the PMAY (U) directives of March 2016 and ensuing revisions shall be incorporated within such projects under PPP inclusive of Rs1.5 lakh from the Centre and Rs1 lakh from the state.
The main feature is 2.5 FSI shall be provided to every budget residential project within this PPP. Projects on land within the vicinity of Green Zone/No Development Zone are also allowed with 1 FSI for building such inexpensive housing.
It also defines that urban development department of the state will independently publish a GR for absolution from development charges for endeavors within the scheme. Every project has to follow Development Control Rules (DCR), Development Plan (DP), Real Estate (Regulation and Development) Act 2016 and Rules and Regulations made under it. The projects should be filed under MahaRERA.
The rates of half of the homes built under this programme shall be determined according to the prevalent evaluation rules of Maharashtra Housing and Area Development Authority (MHADA). For the remainder 50%, the chosen bidder is eligible to decide the prices.
If at any specific locale, the proposals coming in from multiple private factions are more than the requirement recorded for that location, then the private party which is ready to charge peak percentage of residential units (beyond 50%) according to the prevalent costing strategy of MHADA will be chosen as ultimate bidder. In this situation, the chosen bidder can sell the remaining housing units in the open market.
Among the highly critical points is that there is no engagement of the chosen bidder or government in the upkeep of the units following the shift of units to the beneficiary. Subsistence, hence, is the onus of the recipients.