MUMBAI, Nov 22: The Maharashtra housing department has strongly recommended the creation of a Rs 1000-crore equity base for the proposed corporation to be set up for looking into the speedy implementation of the slum rehabilitation scheme. Under the scheme free housing will be provided to 40 lakh slum dwellers in the city.

Of the proposed equity Rs 500 crore can be raised from government run corporations like the Maharashtra Housing and Area Development Authority (MHADA), City and Industrial Development Corporation (CIDCO), Mumbai Metropolitan Region Development Authority (MMRDA), Maharashtra Industrial Development Corporation (MIDC) and the State Industrial and Investment Corporation. The balance can be raised from various financial institutions and funding agencies.

Housing minister Suresh Jain, in a recent letter written to the chief minister Manohar Joshi had said that the proposed corporation can mobilise at least Rs 2,000 crore on year to year basis. The surplus land available will also form an asset to the corporation, he added.The suggestion made by Jain would be discussed at the state cabinet meeting soon.

Jain warned that the project cost would exceed Rs 18,000 crore even if the corporation could build only one lakh tenements per year for the next five years. "If the speed is to be increased, the outlay will increase pro-rata," he added.

The corporation could appoint MHADA as the nodal organisation for project execution and implementation, he suggested. According to Jain, MHADA could establish a joint venture for building the structures as per specifications and materials supplied by different manufacturers. The selection of the joint venture partner would be based on the marketing expertise and technical capabilities for execution of this project.

"The corporation would also be responsible for sourcing of appropriate and inexpensive technology which will fit our budget and time schedule for delivery and execution without compromising on quality," Jain said.

Marketing of the tenements, Jain said, has two aspects. Under the first scheme, the tenements would be allotted free of cost to the rehabilitated slum dwellers. Under the second scheme, the tenements would have to be sold in the open market at prevailing prices and terms.

Jain has suggested a joint venture between MHADA, a domestic partner and a foreign technology/equipment supplier which would enable to invite such technology from abroad. "The foreign technology partners have insisted that they would like to have a local partner alongwith them for this purpose," he added.

A separate corporation for the manufacture of housing materials could be set up to provide a letter of intent and a guaranteed offtake of committed quantities on a year to year basis for a minimum period of five years, the minister said. The foreign partners would like to hold a majority stake in the joint venture and pay penalty if they fail to supply the required materials on time, he said.

Jain stressed the need for formation of a team of technology experts to determine the relative merits of different technologies and recommend the best one.

"Their brief will include assessing the capability of the manufacturer, viability of technology and possible costing comparison with domestic cost structure," he added.

The minister recommended a fact finding tour for legislators comprising members from both the ruling and opposition parties to avoid controversies in the implementation of the project.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.