Maharashtra Approves ₹3,446 Crore For MahaHousing To Acquire Five MTNL Land Parcels In Borivali For Housing Projects

Mumbai: The state government has approved Rs3,446 crore from the Maharashtra Shelter Fund for MahaHousing to acquire five land parcels owned by Mahanagar Telephone Nigam Limited (MTNL) in Borivali, with the move expected to facilitate housing development on the large plots.

₹3,250 Crore For Land Purchase

The decision was issued by the Housing Department through a Government Resolution (GR) dated September 23. The sanctioned amount comprises Rs3,250.26 crore towards the purchase of the five MTNL properties and Rs196 crore towards registration, stamp duty, construction of protective walls, security arrangements and other associated expenses.

The five properties have a combined area of 29.74 acres and are located in Borivali West, Shimpoli and Eksar.

29.74 Acres Across Borivali

The government has also accorded in-principle approval for an overall expenditure of up to Rs7,500 crore for acquiring six properties belonging to BSNL and MTNL in the Borivali area. The six properties together measure 71.06 acres and have an estimated purchase value of Rs7,267.52 crore, with the balance accounting for registration, stamp duty and other related expenditure.

However, the GR states that valuation of the BSNL property will be considered after the BMC issues the notification concerning the reserved plot. Hence, the immediate sanction of Rs3,446 crore relates to the five MTNL properties.

BSNL Plot Valuation Pending

The GR directs the Maharashtra Housing and Area Development Authority (MHADA) to release the sanctioned funds to MahaHousing from the Maharashtra Shelter Fund for the purchase of the MTNL land.

The government has further permitted MahaHousing to raise funds from banks and financial institutions. It has specifically directed the corporation to take necessary steps to raise funds through the Housing and Urban Development Corporation (HUDCO) on a line-of-credit basis for acquiring the remaining BSNL/MTNL land, project-related expenditure and other ancillary costs.

The government has also made provision for up to Rs750 crore annually from the Maharashtra Housing Fund towards HUDCO loan instalments.

Importantly, the funds being provided from the Maharashtra Shelter Fund are repayable. MahaHousing will have to repay the amount to the fund at HUDCO’s rate of interest plus 0.50%.

The Maharashtra Housing Fund will have the first charge on income generated from MahaHousing projects until the funds provided to the corporation, along with instalments paid from the fund towards the financing raised by MahaHousing, are fully repaid.

The government has directed that the sanctioned funds be used only for the purpose for which they have been provided and that separate accounts for the funds and their repayment be maintained by MahaHousing and the Financial Controller of MHADA.

The BSNL property included in the broader proposal is located on L T Road, Borivali West, and measures 41.32 acres and has an estimated value of Rs4,017.26 crore. The GR notes that consideration of the valuation of the BSNL plot will follow the notification by the BMC concerning the reserved plot.

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