Pradhan Mantri Awas Yojana Thane may get Delayed, Mumbai

Pradhan Mantri Awas Yojana Thane, the low cost housing project may get delayed in Thane, as the first phase execution of affordable housing is likely to be delayed due to new GST regime.

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Pradhan Mantri Awas Yojana Thane may get Delayed, Mumbai

Pradhan Mantri Awas Yojana Thane, the low cost housing project may get delayed in Thane, as the first phase execution of affordable housing is likely to be delayed as the Thane Municipal Corporation has to revise the cost of the project factoring in the GST because the proposal was drafted much before the new taxation mode.

Rs 414 cr proposal that will pave way for construction of nearly 3,000 low-cost tenements over the next few years in the city was drafted and sent for approval ahead of the GST implementation in June based on the old rates of construction materials. Officials associated with the project said there could be a revision in the rates by roughly 14% as the earlier taxes on materials was around 32% and has slid to 18% post implementation of the GST regime.

Rate of each 3,000 tenements measuring around 30 sq mt would be around Rs 10 lakh as residents would be paying only for the construction cost. Officials said they are in the process of revising their plans wherein either the number of units would be increased by keeping the rates same per unit or reduce the cost of tenements by keeping the number of units stagnant to pass on the Goods & Services Tax benefits.

As per the mandate, 40% flats would be for the project affected people, while another 40% would be for the affordable segment and the rest would be dispersed by the developer appointed by the corporation at economic rates. The centre and state will bear part of the cost while the resident will be entitled for loan for the rest.

PMAY entails developing nearly 2 lakh tenements in the city and the first phase was sanctioned recently following which the later schemes will be designed and put forth for approval soon. The approval came in last week following which all decks have been cleared for constructing nearly 3,000 tenements under the affordable housing segment.

 Source Link- http://timesofindia.indiatimes.com/city/thane/pms-low-cost-hsg-project-may-get-delayed-in-thane/articleshow/60264612.cms

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