Maharashtra plans homes for construction workers

Maharashtra plans homes for construction workers
24/07/2017 , by , in News/Views

The irony of the housing industry has always been the sight of itinerant construction workers with no permanent dwelling putting up highrise apartments for the fortunate few. Now the Devendra Fadnavis government has finally decided to give these workers their due: it has drafted an ambitious plan to construct 2.5 lakh tenements for construction workers at 20% of the cost of construction under the Pradhan Mantri Awaas Yojna.

A bureaucrat told that 50,000 tenements will be constructed in 2017-18 while the remaining two lakh tenements will be constructed over four years. “It will be a time-bound plan for the welfare of construction workers across the state,” he said.

Since construction workers are typically the most vulnerable segments of the unorganised labour force and their work is characterised by high risk to life, long hours and lack of basic housing facilities, it is proposed that tenements will be built under the Mahakamgar Awaas Scheme. All building and other construction workers registered under the Maharashtra Building and Other Construction Workers Welfare Board will be eligible.

The scheme will support construction of tenements of carpet area up to 30 sq m but not less than 25 sq m with basic civic infrastructure like water, sanitation, sewerage, road and electricity. “All promoters and developers employing more than 10 workers within city limits shall have to facilitate construction of houses for their workers under PMAY. Promoters can also come together and jointly construct tenements for their construction workers. The housing shall be under a credit-linked subsidy scheme (CLSS) of PMAY. Under the scheme, the promoter shall enter into a joint venture with Mhada and workers welfare board for construction of tenements,” the official said.

Under the plan, a private developer shall provide land for these project for which FSI of 2.5 will be provided by Mhada. The builder shall be responsible for designing, building and financing of affordable housing stock and associated services.

The bureaucrat said the financing of the tenement shall be through a house loan with subsidy under CLSS. The allotee shall have to pay EMIs for a fixed period of time leading to the transfer of the unit to the allotee. The loan shall be distributed over 20 years as EMI, of which 80% shall be contributed by Maharashtra Building and Other Construction Workers Welfare Board and 20% shall be contributed by the allotee. Eligible persons shall be identified under a transparent process, preference will be given to differently-abled persons, senior citizens, SC, ST, single women, transgenders and EWS. The allottees will be required to make the payment of the pre-determined amount of the cost of the unit directly to the private developer.

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