New Housing Policy to Deliver 5 Lakh Homes in 5 Years Under 20 Percent Inclusive Scheme in Maharashtra

Maharashtra’s 20 Percent Inclusive Housing Scheme focuses on affordable housing by reserving 20 percent of new housing projects for economically weaker sections. Started in 2013, the scheme faced many challenges, but recent policy updates aim to deliver 5 lakh homes within five years. This article looks at the scheme’s background, challenges, and new government steps.

Understanding the 20 Percent Inclusive Housing Scheme

At first, the Maharashtra government made it mandatory that 20 percent of houses in real estate projects over 4000 sq. m. in selected municipal areas be reserved for the economically weaker sections (EWS). The scheme was made to increase affordable housing by involving private developers and MHADA (Maharashtra Housing and Area Development Authority). Developers must inform MHADA and municipal authorities about upcoming projects, who then organize lotteries to allocate EWS housing within six months.

Key Provisions and Municipalities Covered

The scheme covers nine major municipalities with populations over 10 lakh, excluding Mumbai. These are Pune, Nagpur, Pimpri-Chinchwad, Thane, Nashik, Kalyan-Dombivli, Aurangabad, Vasai-Virar, and Navi Mumbai. Since its 2013 start, MHADA has received only 20,000 to 25,000 houses under this scheme, much less than the initial plan of two lakh houses across these municipalities.

Role of MHADA and Developer Responsibilities

Developers must inform MHADA and the municipalities about new projects to follow the rules. MHADA manages housing allocation through lotteries and handles the reserved units. But often, this process was ignored, as MHADA boards initially overlooked the scheme, and many developers did not report projects, making allocation difficult.

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Challenges Faced in the Implementation of the Scheme

Even with the scheme’s potential, poor coordination and resistance caused many problems, leaving thousands of houses unavailable to those who need them.

Impact of Poor Coordination Between MHADA and Municipalities

Weak communication and teamwork between MHADA’s divisional boards and municipalities caused delays and neglect of housing units meant for economically weaker sections. This affected the overall delivery and lowered the scheme’s success in adding affordable housing.

Developer Opposition and Project Non-Disclosure Issues

Many developers opposed the required 20 percent allotment, worried about losing profits. Some did not notify MHADA about their projects, breaking the scheme rules, while others tried to take houses without permission. MHADA at times also refused to provide housing, showing deeper problems that blocked progress.

New Policy Measures to Reach the 5 Lakh Housing Goal

To fix these issues, Maharashtra’s government has rolled out a new housing policy with tougher enforcement and better monitoring for the 20 Percent Inclusive Housing Scheme.

Enforcement and Monitoring Strategies in the New Policy

The updated policy includes strict compliance checks, regular inspections, and penalties for developers who do not cooperate. It also improves coordination between MHADA, municipalities, and developers to make sure project notifications and lottery allocations happen on time. This active approach aims to speed up building and assigning reserved houses.

How the New Housing Policy Helps Economically Weaker Sections and Homebuyers

With stronger enforcement and simpler processes, the policy promises more affordable homes for economically weaker families. It prioritizes these families in housing lotteries and protects their rights, lowering the risk of exploitation. Providing 5 lakh homes in the next five years will give many people in Maharashtra much-needed housing security.