When Satish Surve (33), a mechanical draftsman working in the MIDC area of Boisar, Palghar district, started looking for a 1BHK flat in Mumbai, he could not find anything within his modest budget of ₹15 lakh, not even through government-run schemes meant to house the economically weaker sections.

That is when he chanced upon a project near his workplace in Boisar. The Tatas had launched an affordable housing project in 2009 through a lottery system along with State Bank of India. Surve was among the lucky-draw winners and is now the proud owner of a 1BHK flat.

However, not many of his friends, who earn between ₹10,000 and ₹24,000 a month, are lucky enough to own a piece of property even in a place like Boisar, about 100 km from Mumbai.

Boisar, still a gram panchayat awaiting a municipality certification, happens to house one of the largest industrial corridors of the Maharashtra Industrial Development Corporation (MIDC), hosting about 1,450 SME industrial units with ‘barely there’ infrastructure.

In the last decade alone, it has created about 100,000 jobs in the area. Workers are largely from the periphery of Mumbai who commute for more than an hour each day to reach their workplaces. But with institutional developers making in-roads into Boisar, there is a visible change in the real estate market dynamics. The Tatas, for example, have delivered close to 3,210 flats under their affordable housing plan in Boisar. Similarly, Mahindra group has also launched a project here.

Not reaching the weak These flats, priced between ₹7 lakh and ₹45 lakh, have been a blessing for the middle income group and small entrepreneurs. But are these schemes reaching the consumers with annual income of not more than ₹2 lakh and the economically weaker section, including maids, rickshaw drivers and plumbers, as intended by the various schemes announces by the Centre? Clearly not.

“No, we are not catering to the really low-income group but we are catering to those with the ability who may not be able to afford a premium project. These can be small-time traders, self-employed individuals and people with a steady income stream but not necessarily taxpayers,” says Rajeeb Dash, Head–Corporate Marketing, Tata Housing.

The current housing deficit in India stands at 19 million units. Of this, 95 per cent of this deficit is around the economically weaker sections and low-income group segments.

To make housing affordable to these segments, the Centre had announced various schemes such as the Pradhan Mantri Awas Yojana. Under this scheme, various credit-linked subsidies and easy access to small loans are provided. An additional income-tax deduction for interest on home loans of up to ₹35 lakh was also announced.

With corporates targeting smaller projects, pockets like Boisar, Palghar, Hinjewadi in Maharashtra, Avadi and Sriperumbudur in Chennai, Howrah in Kolkata and Greater Noida in Delhi-NCR are emerging as hubs for affordable housing, with over 20-25 projects being developed in the category.

Says Sriram S Mahadevan, Business Head, Mahindra Lifespace: “Institutional developers are venturing into affordable housing as the government has initiated schemes like credit subsidy to spur demand and boost the housing category”.

Both Dash and Mahadevan pointed out that the longer a developer stays in a project, profitability is hindered. Industry watchers also note that despite a host of schemes and policies that are implemented by players like HUPA, NHB and HUDCO, the benefit is yet to trickle down to the masses.

To be fair, affordable housing had been a focus of the previous government too, which introduced schemes such as JNNURM, Rajiv Awas Yojana (RAY) and Affordable Housing in Partnership.

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