Hurt Real estate sector

The decision of New CM, Devendra Fadnavis to review all major property development projects can hurt the real estate sector, as all the projects which was cleared in last four to six months of the previous government has put the sector in a fix. Big real estate projects are involving the huge cost and the sector itself will be in a state of suspense for four or six months now according to market experts.

What it is needed to review these projects?
The newly appointed BJP government is taking the cognizance of the charge leveled by the former irrigation minister Mr. Ajit Pawar because few projects of worth Rs12,000 crore were cleared in hurry during in last few months in the tenure of ex- Chief Minister Prithviraj Chavan. CM, Devendra Fadnavis wants to see if procedures were followed.

What does Prithviraj Chavan have to say?
Prithviraj Chavan told to DNA that new government has every right to review any kind of decision taken by his government. And the more he added “I have no problem if they will review the decisions taken be me. I haven’t done anything wrong in my tenure. If the cost of the projects increases by this move, then the incumbent government has to think over it”.

What is a cluster development project?
Any developer with minimum of 4,000 sq meters of land can represent the plan for cluster development, which will include all amenities. And after that government will allot the a Floor Space Index of four and it means means four times the land area can be build as towers or sky scrapers.

What did the previous government do?
The actual value of projects cleared is unknown and a slew of major cluster development projects, which are for Mumbai, were cleared during the last few months. Ajit Pawar was hinting the corruption blame when he made the allegation against his own Chief Minister Prithviraj Chavan.

Why are real estate developers upset?
All the real estate developers who have raised debt to continue the projects already cleared this review will means the huge loss interns of money and as well as reputation. Kailash Agarwal, Chairman of Avighna Developers, doing a cluster project in South Mumbai stated that “Cluster development policy will be affected by this review decisions. The review will result in three to four months escalate the cost many fold. There are only couples of cluster developments projects in Mumbai which have been successfully executed since the inceptions of the scheme in 2009. The more he added that all the developers now again have to pay the bribe for same project and its nothing else then chance to collect the black money.
President of National Real Estate Development Council, Sunil Mantri, said “ The new Chief Minister can review the previous government decisions because they have all rights to do this but it should be done “speedily and with good intention”.

The New Chief Minister of Maharashtra

The first BJP government of Maharashtra is committed to providing roof over every head and accelerating housing industry in Maharashtra to realize the vision of housing for all by 2020, said Maharashtra CM-designate Devendra Fadnavis.

Q: What steps should government take to convert the vision of housing for all by 2020 to reality and to boost the affordable housing?

A: The government will give priority status to affordable housing. Since the vision of housing for all by 2022 is to be realized, the government will streamline the approval process and also reduces the total cost of ownership for the end user of affordable housing.

The new government will remove major bottlenecks like land acquisitions and government clearance for the real estate sector, especially affordable housing projects. Our government wants everyone in Maharashtra to have a roof over head and hence we will do everything within the legal framework to facilitate the development of affordable housing.

Q: Will you adopt BOT policy for development?

Developmental projects should be undertaken on ‘Build, Operate and Transfer’ (BOT) basis. This is one of the ways of development. But in the last few years, some contractors have gained disproportionately out of such projects. Nothing was done in the past to augment the revenue of the state. But this will not happen again. Efforts will be made to augment the revenue of the state by proper evaluation of every project and no undue favours will be granted to any contractor.

Q: What will be your order of priority as the CM?

A: Development of infrastructural facilities, improving the agricultural productivity, industrial development, law and order, standard education in schools and colleges, besides basic facilities of water, power, road, bridge, irrigation and airport.

Q: Since you hail from urban area, what is your idea of agricultural development?

A: I am the son of farmer. I know that it is essential to improve the productivity of the farmland. Unfortunately nothing has been done by the past government. A special machinery will be set in place for this purpose. There will be proper planning for ‘Bagayati and Jirayati’ forms of farming and ample water will be supplied for irrigation. Stress will be on sprinkler irrigation which will lead to the saving of water.

Q: What is your idea of industrial progress?

A: For the promotion of industry, red-tapism will have to go. Efforts will be made to remove all hurdles in the path of industrialists desiring to set up industries which take as many as two years for establishment as of now.  No delay can be tolerated in this competitive age. Technology gets obsolete in no time and hence fast clearances will be granted to industrial projects. Decision will be taken on increasing the FSI in the industrial estate. Effective implementation of Narendra Modi’s ‘Make in India’ will be done in Maharashtra and I will put great emphasis on IT development in Maharashtra.

Q: When in opposition you had flayed the government for turning Maharashtra into debt-burdened state. How will you tackle the situation?

A: Actually, I am not opposed to seeking loans. What is important is purpose for which the loan is taken for and how it is utilized, whether assets can be created out of them. When the loan is spent on unproductive things, the state enters the debt trap. Unnecessary expenditure will be lessened; quality of official cost will be examined, and newer sources of revenue generation will be created so that the state GDP also goes up.

Here comes a shot in the arm of housing sector with none other than Maharashtra Chief Minister Prithviraj Chavan stating that the state government will ensure that middle income group people are able to afford their own houses.
Speaking after unfurling the tricolour at the Mantralaya here to mark the 68th Independence Day, the Chief Minister said, “It is very difficult for the common man to own a house in Mumbai or at other big cities in Maharashtra. For this, we have decided to work towards a goal of ensuring affordable houses. And it will be ensured that it happens at the earliest,” he said.
Since shelter is one of the fundamental needs of man, the government will leave no stone unturned in ensuring that every head has a roof over it, he said.
The Chief Minister said that the government will make Maharashtra an “online” state in the next five years, which will reduce corruption and help citizens avail government facilities.
“We want to make Maharashtra an online state that will help citizens avail all the services of the government sitting at home. This will make government procedures transparent and efficient at the same time. We will ensure that the scheme reaches across to even the smallest of villages,” he said.
“By launching the Rajiv Gandhi Jeevandayee Arogya Yojana, the government has tried to ensure that the needy get the best treatment free of cost. From the time it was initiated, around 5.62 lakh people have benefited from it and the government has spent Rs 712 crores on this scheme,” he added.