Mumbai: MHADA sets up finance committee for stuck redevelopment projects

A committee has now been set up which will prepare finance feasibility report before going ahead with the redevelopment work of any project

Sweety AdimulamUpdated: Wednesday, June 02, 2021, 11:14 PM IST
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Maharashtra Housing & Area Development Authority (MHADA) has approved to set up Finance Committee (FC). Earlier, the Mumbai Building Repairs & Redevelopment Board (MBRRB) Chairman, Vinod Ghosalkar, had made a demand to set up the committee for undertaking the stuck/acquired redevelopment projects.

A committee has now been set up which will prepare finance feasibility report before going ahead with the redevelopment work of any project, Ghosalkar said.


He explained, "The new committee will coordinate with the funding agencies/banks based on the feasibility report. This committee will prove to be essential, so the projects do not face financial issues in later stage. The committee is chaired by the repair board chairman and other members such as MHADA CEO, Chief Engineers among others who will be a part of it, ensuring smooth execution of the project".

The MBRRB looks after the repairs work of cess buildings. The cessed buildings are those for which the government collects tax for a repair fund. These buildings were mainly built before Independence and located in the island city only. There are about 14,500 such cess buildings that are in dire need of redevelopment. Of which, hundreds of buildings obtained No objection certificate (NoC) to carry out redevelopment have been delayed/ incomplete for various reasons.

Reportedly, the state government had issued a notification to expedite such stuck redevelopment projects. However the policy is at the President of India Ramnath Kovid's office for final approval. The Board has sent a proposal seeking relaxation on the Central Government Land Acquisition Act. Once the amendment in land acquisition law is approved, redevelopment of old cessed buildings in Mumbai will expedite, generating house stock.

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