 "Maharashtra to move Centre to release Mumbai salt pans for housing poor")
The Bharatiya Janata Party-led government in Maharashtra proposes to throw open nearly 14,000 hectares of salt pan land in Mumbai and around for housing aimed at the economically backward classes and the poor. State minister for salt pan lands Girish Mahajan told Business Standard: “The salt pan land in Mumbai and along the 720-km of coast in the state is currently in the Centre's possession. The state government will soon appeal to the Centre to release it so that housing for the poor and economically backward classes can be taken up on a priority basis. This will also help effectively implement Prime Minister Narendra Modi's ambitious plan of Housing For All.''
He said the issue was discussed at length at the meeting of the western states held last week in Goa.
However, Mahajan's announcement has evoked mixed reactions from the realty sector players. JLL India chairman and country head Anuj Puri said opening up even half the 6,000-acre belt of salt pan land in Central Mumbai and Navi Mumbai would have a favourable impact on the real estate market.
Also Read
“However, very low-cost housing apart, it is unlikely there will be significant residential developments in these areas to begin with. The locations in question are far-flung and would not present discerning home seekers with much of an incentive to live there. What we will see in these areas, if the salt pan land is indeed made available, is commercial space development,” he noted.
Knight Frank India Executive Director Gulam Zia said from the perspective of real estate developers, who have been taking positions in salt pan lands in anticipation of unlocking its potential, this move is no reason to cheer as housing for the poor lacks incentives.
“An extremely low-margin game, affordable housing has not been picked up by most of the builders yet. However, most of them see it as the sign for a climb down, which will over a period of time open up for all kinds of real estate. For middle and lower income households, and for the under-privileged, this move comes in as a big hope for roof over their heads. The only concern is that if the developers are not motivated enough to take up this cause, the government will have no other alternative, but to execute it through their own agencies which for lack of resources, expertise and quality consciousness, will only mean a longer wait for this longing for an abode,” Zia opined.
National Real Estate Development Council president Sunil Mantri argued the government needs to call for PPP for carrying out development on these lands for affordable housing units. Mostly, these lands are close to city. He admitted it would help boost the realty sector.
According to Puri of JLL, the information technology sector might show interest since these are ideal locations for back-office set-ups.
Following the establishment of commercial projects on the salt pan lands, residential space will follow as a natural consequence.
“While many residential sector requirements such as electricity, water availability and connectivity are more or less in place in these locations, it takes the presence of hospitals, schools and shopping facilities to transform them into residential locations of any consequence,'' he said.
