MCHI signs Joint Declaration with Maharashtra Govt

;
o To facilitate creating 5 lac affordable homes
o Chief minister announces ‘single window’ clearance system for the scheme

Mumbai, April 28, 2010: Mr Ashok Chavan, the honourable Chief Minister of Maharashtra today announced that a ‘single window clearance’ system would be created for facilitating the construction of 5 lakh houses under ‘Housing for All’ scheme as outlined by Maharashtra Chamber of Housing Industry (MCHI).

Mr Chavan was speaking at the valedictory session of the day-long convention ‘Housing for All’ convened by MCHI here today and said that the high level committee under the chief secretary would be set up in a week’s time.

In one of the largest Public Private Partnership initiatives aimed at making available five lakh affordable homes in Mumbai and Mumbai Metropolitan Region, (MMR) Maharashtra Chamber of Housing Industry (MCHI), the umbrella body of developers, signed a Joint Declaration with the Government of Maharashtra in the presence of Hon’ble Chief Minister, Shri Ashok Chavan at the ‘Homes For All’ Convention held here today.

The Chief Secretary, Government of Maharashtra Shri J P Dange on the occasion signed the joint declaration with MCHI President Shri Pravin Doshi which would facilitate the construction of 5 lakh affordable houses in Mumbai and Mumbai Metropolitan Region over the next 5 years

Earlier in the day, Maharashtra Deputy Chief Minister Chhagan Bhujbal inaugurated the day-long convention, aptly titled ‘Homes For All’. A major step by MCHI to provide affordable homes to middle and lower income groups living in Mumbai and Mumbai Metropolitan Region (MMR). Minister of State for Housing Shri. Sachinbhau Ahir was also present on the occasion.

Distinguished guests and speakers such as MMRDA Commissioner Shri Ratnakar Gaikwad stressed the need for Rental Housing, while MHADA CEO Shri Gautam Chatterjee articulated the necessity of Public Private Partnership and its benefits towards housing development in Mumbai and MMR. CEO Slum Rehabilitation Authority (SRA) Shri S S Zende spoke on Slum Rehabilitation while Brihanmumbai Municipal Commissioner (BMC) Shri S. S. Kshatriya spoke on the much needed Speedy Approvals.

MCHI will be partnering with the State Government to examine and identify measures to strengthen the housing industry’s role in the socio-economic development of the State. Additionally, the premier housing body will also seek to formulate measures that will aid in the development of affordable homes and ensure their availability across the Mumbai and MMR Region.

Commenting on this major initiative, Mr. Pravin Doshi, President, MCHI said, “it is really a historic day for MCHI and Maharashtra as the developers body entered into Joint Declaration with the state government to supplement its efforts to fulfill the dream of millions of economically challenged people in Mumbai and MMR to own their own house. With the participation of over 500 developer members of MCHI and wholehearted support from all the housing agencies and authorities, I am confident that we would be able to facilitate the creation of five lac homes in next five years”.

According to Cushman and Wakefield report, the demand for affordable housing is expected to increase by approximately 400,000 units every year in the country. MCHI is aiming to lend its support to the State Government to address the housing shortage through the establishment of a planning committee that will offer solutions and help to formulate a concrete policy that will ensure the establishment of affordable housing communities.

Mumbai has an immediate demand of approximately 1.4 million homes, of which, 80% of the demand is expected to emanate from the 3-5 lakh income group. There is an unmet demand for basic affordable housing in Mumbai and the MM region due to an increase in land, labour and construction costs.

“Affordable housing, said Mr. Pravin Doshi, “is one of the most talked about issues in the real estate over the past several years. The challenge is to provide affordable homes for every family in Mumbai and the MM Region. There are also very few houses in the affordable income bracket that are being constructed across Mumbai and the distant suburbs.”

Mr. Doshi further added that “around 60% of the population of Mumbai lives in informal housing. Therefore, affordable homes should be the focus of all concerned stakeholders. By hosting the ‘Homes for All convention’ we intend to provide a clear blueprint to address the issues at hand and the appropriate way forward, said Mr Doshi.

Commenting on the MCHI’s movement towards affordable housing in Mumbai and MMR, Mr Mayur Shah, Hon. Secretary MCHI said, “this innovative plan would prove to be a win win for the people in Mumbai and MMR, developers and all other stakeholders. With the active support of the state government and other bodies, developers would be in an ideal situation to facilitate the creation of additional housing stocks in the affordable segment and hand them over for distribution to the needy people”.

Government of Maharashtra has already announced several Affordable Housing schemes through various schemes like MMRDA’s – Rental Housing (homes of 160 sq. ft.), SRA (269 sq. ft.), MHADA (LIG, MIG & EWS) and Redevelopment cessed building 33 (7) and 33 (9).

But there are many bottlenecks, and there’s a need for speedy clearances which can thereby create huge supply through these schemes.

MCHI would like to play the role of facilitator and suggest policy related and practice related reforms so as to streamline the Affordable Homes supply through these schemes. The Joint Declaration shall form a Joint Committee to iron out procedural and regulatory issues affecting Affordable Housing projects.

“Creation of affordable houses is an overriding priority and it could only be accomplished with active support from all stakeholders”, Mr. Doshi further added.

Highlights from “Joint Declaration”.

COMMITMENTS OF MCHI
A. MCHI hereby pledges and commits that it shall make all reasonable endeavours to be in the role of facilitator to its members and encourage the members to take up construction of Affordable Homes within projects being developed by such respective members.

B. MCHI estimates that within a period of 5 years, construction of 5,00,000 (Five Lakhs) Affordable Homes can be achieved by its members within the Mumbai and MMR.

C. MCHI shall in consultation with its members, from time to time make Proposals and submit the same to the GOM which shall be ultimately aimed to promote the development and construction of more Affordable Homes. MCHI has already formulated suggested guidelines so that bottlenecks in the GOM approved schemes of affordable homes are removed and speedy developments across MMRDA regions is achieved through all the GOM schemes. MCHI with GOM shall finalise all such amendments for speedy and viable implementation projects of affordable homes in next 60 days.

COMMITMENTS OF GOM
A. The GOM shall from time to time consider the Proposals made by MCHI in good faith and shall take all quick steps including legislative reform and amendments in policies so that all the bottlenecks in implementing affordable homes projects are removed.

B. The GOM shall appoint MMRDA as a nodal agency for approval of all projects involving the construction of Affordable Homes, with all powers and authorities for approval of projects involving the construction of Affordable Homes to grant a single window clearance to all such projects.
C. GOM shall finalise all such amendments for speedy and viable implementation of affordable homes projects in next 60 days along with necessary administrative directions for the implementation of the same.

JOINT COMMITTEE
A. The GOM hereby appoints it’s
(1) Principal Secretary, Urban Development – Chairman
(2) Principal Secretary Housing
(3) MMRDA Commissioner
(4) CEO & Vice Chairman, MHADA
(5) Municipal Commissioner, Mumbai
as the Authorised Representatives.
B. The MCHI hereby appoints
(1) Shri Pravin Doshi, Chairman of “Homes For All” Committee
(2) President MCHI – Shri Sunil Mantri
(3) Shri Dharmesh Jain
(4) Shri Mayur Shah
(5) Shri Nainesh Shah
as the Authorised Representatives.

RESOLUTION
The said Joint Committee shall meet regularly at least once a week and shall resolve all the possible bottlenecks and bring in appropriate reforms in practise and in policy in next 60 days and accordingly MCHI shall facilitate and endeavour to deliver 5 lakhs affordable homes in next 5 years.

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