To Make PMAY Homes More Affordable, Maharashtra Govt Wants Them Sold At RR Rates
Homes will become more affordable in the state if all goes according to the plan made by the Maharashtra government. In a recent directive, the state government, led by Chief Minister Devendra Fadnavis, has told builders, who are assisting it in constructing homes under the Pradhan Mantri Awas Yojana to sell half the units using ready reckoner (RR) rates as the benchmark. RR rates are the government-set rate of properties below which a property cannot be sold in the market. Currently, units built under the scheme are being sold under the Maharashtra Housing Area Development Authority (Mhada) policy, and cost about 20-25 per cent more when compared to RR rates.
In fact the agency is having a difficult time because of its failure to sell plots and units worth Rs 869 crore. Rates of these properties are considerably higher than market rate of similar properties. These plots and flats are meant for economically weaker sections, low-middle-and-higher-income-group categories.
“Our funds are blocked for a long period since there is no demand due to massive price difference of Mhada tenements and flats on the open market in the same area ... We will have to work out a new policy to ensure that Mhada tenements and plots are sold on no-profit-no-loss basis,” a Mhada official was recently quoted by The Times of India as saying.
The new move by the government could be a perfect solution to the problem. It could prove to be a fine bargain for real estate developers, too, as they are being offered an additional floor space index of 2.5 for developing projects under the Central scheme.
Currently, about 30 realtors, through a public-private partnership pact, are assisting the state to build low-cost homes that would cater to the low-income group and economically weaker sections. The state plans to build about 10 lakh such homes.