The Maharashtra government through its company Shivshahi Punarvasan Prakalp (SPPL) has signed a memorandum of understanding with the State Bank of India to help builders finish their stuck slum-rehabilitation projects.
Over 3,500 slum rehabilitation projects which have been stuck for years due to builders’ inability to finish them might get a new lease of life. The Maharashtra government through its company Shivshahi Punarvasan Prakalp (SPPL) has signed a memorandum of understanding with the State Bank of India to help builders finish their stuck slum-rehabilitation projects.
SPPL is a state-owned company which was formed way back in 1995 to rehabilitate slum dwellers by building affordable homes. Through this scheme, SPPL will give loans to builders as ‘start-up capital’ to finish their stuck projects, while SBI will provide ‘construction fund’ for completion of the saleable component.
The loan will be given by SBI at the interest rate 8.7 percent. In order to avail this scheme, the builders will have to build affordable homes (30-60 square meters). In this way, the scheme is also linked to the Pradhan Mantri Awas Yojana.
“This scheme has come as a Diwali bonanza for both slum dwellers as well as people who could not get their homes in the salable component,” said Housing Minister Prakash Mehta.
“The loans will be given to RERA certified projects. This is a very composite scheme as it is a win-win situation for both the builders as well as people who could not get their homes. Also, for the banks it is easier to give loans when there is government control,” said Deepankar Bose, Chief General Manager, SBI.
The government is also planning to rope in Tata Finance in this scheme.
“We are also in the process of preparing a similar scheme for the Dharavi redevelopment project” added housing minister Prakash Mehta.The scheme is set to benefit Mumbai where almost 60 percent people live in slums. The government also plans to give a boost to affordable housing through this scheme. The state government has plans of building 19.4 lakh affordable homes by 2022.