Maharashtra to create stressed fund for slum rehabilitation projects in Mumbai

To provide necessary financial assistance to developers for undertaking slum rehabilitation projects in city, Maharashtra government has decided to set up a special stressed fund where it will contribute nearly Rs 700-1,000 crore.

decision comes at a time when number of COVID-19 cases in densely populated financial capital of country has increased to more than 87,000, while death toll has crossed 5,000-mark.

" recent COVID crisis has emphasised importance of making Mumbai slum-free as number of cases in slums have increased significantly.

"refore, it is necessary to rehabilitate slum dwellers and to give m a better living environment," state Housing Minister Jitendra Awh told reporters in a conference call.

He said since pandemic has also impacted ailing housing industry and developer community, it was necessary to provide financial assistance to builders who are taking up slum rehabilitation projects.

"We have proposed to create a stressed fund for SRA (Slum Rehabilitation Authority) projects where we can help builders with finances through banks.

"We are in talks with State Bank of India and or banks to create fund under Shivshahi Punarvasan Prakalp (SPP). state would also contribute to extent of Rs 700-1,000 crore in fund," he said.

According to Awh, funds would be raised by SPPL, a fully-owned company of Maharashtra government, through banks, but fund will be controlled and distributed by banks.

"I have alrey discussed this with Chief Minister Uddhav Thackeray who has given consent for setting up fund. We will w work on details of fund and maybe by next week, we will take it before Cabinet for approval," Awh ded.

He furr said over five lakh units are proposed to be developed under SRA scheme, out of which only two lakh have been built so far.

According to Awh, while 541 SRA projects are rey, around 370 are stuck.

Apart from this, SRA will take responsibility of vacating slums where builders have received 70 per cent consent of slum dwellers, which has been a major challenge for builders in any rehabilitation project, Awh ted.

"We have also decided to relax various premiums related to slum redevelopment projects by way of reductions and deferred payments. Along with premium relaxations, approvals timeline has been drastically reduced at all sts by Slum Rehabilitation Authority," he ded.  minister said revised timeline of approvals at various sts, including letter of intent, would result in more than 50 per cent reduction in timeline compared to previous structure followed by SRA.

authority has also capped rental amount during rehabilitation phase to Rs 1.2 lakh and Rs 96,000 per annum in city and suburbs zones, respectively.

As per prevailing policy, applications for intimation of approval (IOA) were accepted after issuance of letter of intent but w it will be approved simultaneously and completion certificate (CC) issued within seven days of application.

Also, approval of file will be scrutinised at three levels only, compared to six previously.

"Earlier, maintenance deposit of Rs 40,000 per tenant was payable to extent of 50 per cent at CC st and balance at rehab occupation certificate (OC) st. This has been relaxed to be payable at OC st of rehab building," Awh said.

Taking cognisance of stay orders on rehabilitation projects by various authorities, minister said authority except courts would be allowed to impose a stay on any ongoing SRA project.