Builders in Maharashtra must set aside 20% quota for low income groupsAll new building projects in the country will now have to earmark at least 10 per cent of its housing space for the Low Income Group (LIG) and another 10 per cent for the Middle Income Group (MIG).
Apnaloan.com Research Bureau
10 Aug 2007
All new building projects in Maharashtra will now
have to earmark at least 10 per cent of its housing space for the Low Income
Group (LIG) and another 10 per cent for the Middle Income Group (MIG). The
Maharashtra state government will soon make this mandatory, be it a private or
public project, said a policy tabled in the legislative assembly on July 23,
2007. In return, developers will get incentives including additional floor space
index (FSI) and tax benefits.
The policy defines LIG units as flats spread across a minimum of 30 sq metres (323 sq ft) and MIG as those with 50 sq m (538 sq ft). Based on directions from the Centre, several states are working on similar measures to boost affordable housing stock. For example, the Delhi Development Authority in its 2020 Master Plan has reserved 50 per cent of all new layouts for LIG and MIG tenements.
A few builders and activists have raised doubts about the viability of the scheme in Maharashtra saying that the rich can do illegal binami bookings and escape detection.
The FSI incentives have not been decided yet, but those constructing more than the minimum stipulated 20 per cent stocks of LIG/MIG flats will be given even higher FSI.