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Maharashtra CM may scrap fixed rent plan for slum rehabilitation projects

Housing Minister Jitendra Awhad’s bid to fix the rent paid to slum dwellers living in transit during redevelopment between Rs 8,000 and Rs 12,000 has become a political hot potato with netas across party lines opposing the scheme, including some from within the NCP.

According to a senior Sena minister, Chief Minister Uddhav Thackeray is likely to scrap the fixed rent plan. “We feel the rent must be fixed by the developer and the slum dweller’s society by mutual agreement. However the other reforms announced have been well received and will help fast track slum redevelopment. Except the fixed rent plan, all other reforms will be approved soon with some minor changes,” the cabinet minister said.

Earlier this month, as part of the larger reforms in the housing sector and a bid to fast track slum redevelopment projects, Awhad had announced a slew of reforms. Among them, the transit rent to be paid by the developers had been fixed at Rs 12,000 per month for projects in Colaba-Bandra region, Rs 10,000 per month for Bandra to Andheri/Ghatkopar, and Rs 8,000 per month for projects in Andheri to Dahisar.

Former Congress minister Naseem Khan said that while he welcomes the reforms, the rent proposed was very low. “With rents as low as Rs 8,000 per month, slum dwellers will have to look for housing in satellite towns outside the city,” Khan said. BJP MLA from Mulund, Mihir Kotecha said, “The state government must stay away from the rent issue. The monthly rent must be agreed mutually between the slum dwellers and developers,” Kotecha said.

Awhad had announced a stress fund to provide liquidity for completion of stalled Slum Rehabilitation Authority (SRA) projects and a series of steps that are expected to speed up approvals process, grant relaxations to developers in premium payments.

A senior Sena cabinet minister said that the CM wasn’t happy with capping the rent. “We are going to face the BMC elections soon. So politically this move will be a disaster for us. We can’t hurt slum dwellers this way,” the minister said. According to officials, 370 SRA projects are presently stalled for want of liquidity. NCP functionary Baban Kanavje has written to Awhad asking him to rethink the plan. Kanavje has said that right now developers pay around Rs 15,000 to 17,000 rent to slum dwellers.

Sourceetrealty
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