The project is in keeping with the Central Government’s scheme for affordable housing in partnership with private firms under JNNURM. MHADA will be the implementing agency for the scheme in Mumbai. Under the scheme, the Centre will contribute Rs 60,000 to Rs 1 lakh for every tenement that is constructed for economically weaker sections (EWS) and low-income groups (LIG). At least 25 per cent of the total flats in any such private-partnership project have to be in the EWS and LIG categories. The remaining flats can be constructed for middle and high-income groups and sold by the developer for profit at market rates.

Buyers will not only get the benefit of affordable homes but also can avail themselves of a subsidy of five per cent per annum on the interest charged on the bank loan. This subsidy can only be availed of by those buying houses meant for EWS (average monthly income up to Rs 3,300) and LIG (between Rs 3,301 and Rs 7,300).

MHADA will soon invite Expressions of Interest from developers who will use their land for this project. MHADA vice-president Gautam Chaterjee said the board is in the process of framing guidelines specifying minimum area of land required for individual projects, provisions for incentive floor space index and similar details.

Already two developers — Neptune Group and Shreepati Developers — have submitted their proposals for the scheme. The proposal submitted by Shreepati Developers aims at developing around 18,000 flats in an area of 120 acres at Khalapur near Karjat. Of this, 7,678 flats will be for the EWS-LIG category. Similarly, the Neptune Group has proposed to develop more than 10,000 units on a 100-acre plot at Ambivli. A few months ago, the group had launched its Swarajya project — a budget homes project aimed at the middle and low income groups — at the same site.

Chaterjee, however, said the guidelines being prepared by the board will look at getting more developers from within city to construct houses at affordable rates. “The proposals we have received so far are from far-flung areas and quote a price range of Rs 5 lakh and above. MHADA recently sold an EWS apartment in Malvani and Ghatkopar at Rs 3.5 lakh to Rs 5 lakh. We want to create a win-win situation for developers who chip in their land and home-buyers who should be able to afford flats within Mumbai.”