Housing projects of the City and Industrial Development Corporation (CIDCO) received financial backing as it has signed an agreement with the State bank of India (SBI) for a line of credit of Rs. 5,000 crores for its Mega Housing project under Prime Minister Awas Yojana (PMAY) at an interest rate of 6%.
The mega housing project comprises 1,12,500 houses of which 35% of them are reserved for the economically weaker section (EWS) and 15% for the lower-income group (LIG) under the PMAY scheme. The remaining house stocks will be available for open sale.
A senior CIDCO official said that SBI has provided a line of credit of Rs. 5,000 crores to the PMAY Mega Housing Scheme being developed by CIDCO, thus CIDCO PMAY housing scheme meets financial closure. This will speed up the construction of houses under the scheme and make the dream of affordable housing come true for many common citizens.
"The line of credit sanctioned by the SBI will enable completion of the Mega Housing Scheme on time. The interest rate of 6% is probably the lowest rate for any PSU historically. This mega housing scheme is amongst the largest of its type in India and the world. This line of Credit completes the financial closure of the project." Dr. Sanjay Mukherjee, Vice Chairman and Managing Director, CIDCO.
The estimated cost for the Mass Housing Scheme is Rs. 30,000 crores, out of which Rs. 4,000 crores will be financed from CIDCO’s infusion, Rs. 5,000 crores from bank credit and the remaining will be internal accruals of the project.
CIDCO is implementing the mega housing scheme based on the concept of ‘Transit Oriented Development’ in various nodes of Navi Mumbai which comprises 1,12,500 tenements. Phase 1 has 23,500, phase II has 67,000 and phase 3 has another 22,000 tenements.
The phase-1 of the scheme has been completed and the work under phase-2 is under full swing and the work of phase-3 will start soon.