The Maharashtra government will consider reducing the premiums levied by several authorities on real estate projects in Mumbai, and wants real estate developers to focus on low-cost housing. The government is also working to revive stuck projects in Maharashtra along with several slum rehabilitation projects, Atul Save, the state’s Housing Minister, said.
“I have received several representations from developers, and let me announce that the government will positively look into them. I will soon call a meeting with developers to understand their concerns, and understand the issue of premium reductions,” said Save. “We will work out and consider reducing the premiums and permission fees. But at the same time, I would also request developers to consider construction of low-cost housing to ensure that housing is for all in the true sense.”
“Even today we have 50 to 60 percent of the population in Mumbai are residing in slums and housing is something that has a lot of potential. Hence, I expect that developers will consider low-cost housing to ensure all sections of society are catered to. The government is there to support in case of any issues,” said Save.
“We are also working towards ensuring stuck or delayed projects of the slum rehabilitation projects are revived. I have instructed the CEO of the Slum Rehabilitation Authority (SRA) to make a list of such stuck projects and take decisions case by case to ensure these projects are revived,” Save added.
By premium the minister was referring to the charges levied by government authorities to approve applications for initiating, progressing, and completing the area or additional area in a project. These include the fungible premium, premium paid for FSI (floor space index), open-space deficiency premium, premium paid for more being ground covered during construction, lobbies, lift wells, staircase premium, etc.
In Mumbai, there are more than 25 types of premiums that a developer ends up paying to the authorities. Around 20 to 30 percent of the project cost goes towards these premiums, say real estate developers. CREDAI-MCHI has requested the government to reduce premiums by 50 percent to boost Mumbai's real estate sector. The apex body maintains that the different premiums developers pay in Mumbai have made it the costliest real estate market in India in comparison to other cities, hampering its economic growth.
