A revenue-sharing model has been approved by the Maharashtra government between developers and its housing authority to encourage more builders to redevelop housing colonies and unlock prime real estate in Mumbai while taking into consideration market realities.
Maharashtra's the new policy could revive the market for redeveloping many dilapidated housing colonies built by the Maharashtra Housing and Area Development Authority, or Mhada in Mumbai and its suburbs, after an earlier apartment-sharing formula put off builders from such projects.
In Mumbai, there are 104 Mhada-built residential colonies, covering 1,560 hectares and comprising 2,25,000 flats. Many of these have been declared dangerous for human occupation by the Municipal Corporation of Greater Mumbai as these buildings are 40-60 years old.