Chadha Developers & Promoters will be investing around Rs 1,100 crore to develop the project in Vangni over the next four years. The company will be developing 8,228 apartments across a total 133 towers in this project and 50% of these will be reserved under the government’s affordable housing support scheme the Pradhan Mantri Awas Yojna (PMAY)-Urban for the economically weaker section (EWS).
“MHADA will be acting as the planning authority for this project that has already been approved by the state and central government. As the nodal agency, we will also be taking care of distribution of subsidies worth Rs 1.5 lakh from central government and Rs 1 lakh from the state government to allottees through PMAY (Urban) scheme,” Nitin Mahajan, Chief Officer, Konkan Board of MHADA, told ET.
MHADA will also be responsible for screening the eligible beneficiaries, who will be able to buy these houses at Rs 5.61 lakh after factoring the subsidy benefit.
More than 1,000 applicants have already been selected for the allotment through a lottery draw in the last two lots since its launch in September 2021. A lottery for around 3,000 flats will be closing on December 25, while the draw date is January 1.
“This is the first time that MHADA has come up with a public-private partnership. We are excited to enter into a tie-up with the government for a project that serves the purpose of buying homes at affordable rates to the common people. We have taken measures to maintain transparency in order to have a long-lasting relationship with MHADA,” said Dimple Chadha, MD, Chadha Developers.
Part of the project, under the pact between MHADA and Chadha Developers, consists of 66 towers of 7-storey buildings comprising 4,114 flats of 1 bedroom and the same has secured approval from the Real Estate Regulatory Authority (RERA).
The project will include a commercial shopping complex, school, 15 gardens and charging stations for electric vehicles in each building among key amenities.
The government has been pushing the supply of affordable housing through various schemes and incentives for the last few years. The adoption of PMAY policy in 2015, the government of India has targeted to meet a demand of 11.22 million homes. Since the launch of the policy until March, 11.3 million houses have been sanctioned, out of which, 4.8 million have been completed till date.
The need for affordable housing in the growing urban sprawls of India has caught the attention of many developers, who are looking to tap this growing demand. Over 50% of all India residential launches in the top eight cities in the last 5 years have been in the sub-Rs 50 lakh segment.
Last year, the government of Maharashtra had invited private real estate developers to partner with its housing agency MHADA to build affordable residential projects across the state. This model has already been explored by the state governments of Uttar Pradesh, Haryana and West Bengal.