CIDCO receives Rs. 5,000 Crore fund based line of credit for its PMAY mega housing scheme. CIDCO PMAY mega housing scheme achieves financial closure
By Varun Singh
Here’s some good news, CIDCO’s Mega Housing Scheme comprising of 1.12 lakh tenements gets a Rs 5,000 crore push.
State Bank of India has provided line of credit of Rs 5,000 crore to the PMAY Mega Housing Scheme being developed by CIDCO, thus CIDCO PMAY housing scheme meets financial closure. This will speed up the construction of houses under the Mega Housing Scheme and make the dream of affordable housing come true of many common citizens.
“The line of credit sanctioned by the State Bank of India will enable completion of the Mega Housing Scheme on time. Interest rate of 6% is probably the lowest rate for any PSU historically. This mega housing scheme is amongst the largest of it’s type in India and the world. This line of Credit completes the financial closure of the project,” said Dr. Sanjay Mukherjee, Vice Chairman and Managing Director, CIDCO.
State Bank of India has sanctioned line of credit to CIDCO at a very affordable interest rate of only 6%. It is very rare for a Public Sector Undertaking like CIDCO to get credit at such a low interest rate. Through this, SBI has appraised the project and found it viable. This will definitely help in speeding up the project.
The estimated cost for the Mass Housing Scheme is Rs 30,000 crores, out of which Rs 4,000 crores will be financed from CIDCO’s infusion, Rs 5,000 crores from bank credit and the remaining will be internal accruals of the project.
CIDCO has appointed a private agency for Marketing and Consumer Relationship Management of the scheme to ensure end to end services throughout & after sale process. Thus, CIDCO has become the first government authority to adopt this kind of professional approach for the housing scheme.
CIDCO is implementing this housing scheme based on the concept of ‘Transit Oriented Development’ in various nodes of Navi Mumbai which comprises of 1,12,500 tenements. Phase 1 has 23,500, Phase II has 67,000 and Phase 3 has another 22,000 tenements. 35% of these tenements are EWS under PMAY scheme and 15% comes under LIG & remaining are for open sale component.
CIDCO worked successfully on various fronts like site availability, financial planning, statutory clearances, Project Monitoring Mechanism and started implementing the scheme. The phase-1 of the scheme has been completed and the work under phase-2 is under full swing and the work of phase-3 will start soon.
The housing complexes under the scheme will be located at very strategic locations of Navi Mumbai. These housing complexes have gained good connectivity through the existing Harbour, Trans-Harbour Railway and the upcoming Nerul-Uran railway lines and state highways. This will significantly save travel time of residents of these housing complexes for travelling to the various business districts in the Mumbai Metropolitan Region.
Also Read: CIDCO clears entire Navi Mumbai International Airport site
