The existing service charges, which vary from place to place, will go up by 20 per cent and that too with retrospective effect, the government has decided. The hike is in accordance with the increase in expenses towards water and electric supply.

The proposal was earlier discussed by the Shiv Sena-BJP government but was shelved after the residents strongly protested it by staging demonstrations and taking morchas to MHADA's head office at Bandra.

The Housing Minister has also decided to review the Shivshahi Punarvasan Prakalp Limited (SPPL), the government-owned company set up by the Manohar Joshi government to implement the Slum Redevelopment Scheme. The SPPL was expected to finance projects under SRD and also initiate projects on its own. Though Rs 600 crore was approved forthe company, only Rs 115 crore was actually transferred to the company's account. The SPPL has so far given loans amounting to about Rs 100 crore to various builders implementing projects under SRD in various parts of the city.

The government, however, has decided to review the decision to set up SPPL as it is reportedly against the idea of lending loans to builders. A meeting of experts in the field of housing, slum improvement and city planning has been convened at the Y B Chavan Centre on November 30. Chief Minister Vilasrao Deshmukh, the housing minister and high-ranking government officials will address the meeting. The final decision about SPPL and SRD, in addition to certain policies about MHADA, will be taken immediately after the meeting, sources said.