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By:

Bhalchandra Chorghade

11 August 2025 at 7:24:18 pm

CIDCO struggles to find takers for its homes

Mumbai: The City and Industrial Development Corporation’s (CIDCO) latest housing scheme has exposed a recurring challenge for the planning authority: finding buyers for its large housing inventory despite its affordable-housing focus. The August 2026 scheme offered 4,793 homes in Taloja, Kharghar and Kalamboli and received 4,180 confirmed applications before bookings closed on September 3. While CIDCO described the response as strong, 613 homes—nearly 13 per cent of the inventory—had no...

CIDCO struggles to find takers for its homes

Mumbai: The City and Industrial Development Corporation’s (CIDCO) latest housing scheme has exposed a recurring challenge for the planning authority: finding buyers for its large housing inventory despite its affordable-housing focus. The August 2026 scheme offered 4,793 homes in Taloja, Kharghar and Kalamboli and received 4,180 confirmed applications before bookings closed on September 3. While CIDCO described the response as strong, 613 homes—nearly 13 per cent of the inventory—had no confirmed applicant. This follows earlier schemes with similar gaps. In January 2025, CIDCO’s ‘My Preferred Home’ scheme, offering around 26,000 homes across Navi Mumbai, attracted 1.36 lakh initial applications. However, only about 55,000 applicants paid the registration fee and around 22,000 deposited the required earnest money, leaving serious participation below the number of homes offered. A CAG-linked report on two CIDCO housing schemes in Kharghar found that, of 4,814 saleable tenements, allotment letters had been issued to 3,733 applicants and possession handed over to 3,317. Four years after the draw, 1,081 tenements remained unsold. CIDCO has also faced scrutiny over marketing expenditure. In 2023, reports questioned the appointment of private agencies to market and allot PMAY homes, stating that the agencies had received advances of more than Rs 100 crore before sales took place. CIDCO officials said external support was necessary given the scale of the programme. The scale of investment adds to the concern. CIDCO’s mass-housing programme envisaged 68,515 homes at an estimated cost of around Rs 15,300 crore. A 2024 report noted that thousands of completed homes were awaiting sale, locking up capital and increasing the authority’s financial burden. The latest homes are located in Taloja Sector 39, Kalamboli Bus Depot and Kharghar Bus Depot. Taloja accounts for 4,229 homes, followed by 257 in Kalamboli and 293 in Kharghar. Indicative prices range from around Rs 23.50 lakh in Taloja to Rs 37.70 lakh in Kalamboli and Rs 43.50 lakh in Kharghar. The figures point to a possible mismatch between what CIDCO considers affordable and what its target buyers can finance. Industry experts have noted that EWS homes priced at Rs 25 lakh or more may be difficult for households within the prescribed income ceiling, particularly after registration, stamp duty, floor-rise charges and other costs. Location may also influence demand. Taloja has seen rapid development and improved connectivity, including metro access, but buyers continue to weigh its distance from established employment centres and social infrastructure, as well as commuting costs. CIDCO maintains that its housing programme meets a genuine need in Navi Mumbai. Ashwin Mudgal, Vice Chairman and Managing Director, CIDCO, said, “The overwhelming response to the housing scheme reflects the aspirations of citizens to own a home in Navi Mumbai and their continued confidence in CIDCO’s planned development initiatives. CIDCO remains committed to providing affordable and quality housing opportunities in well-planned locations, enabling citizens to benefit from the region’s growing infrastructure and connectivity.” The authority has also highlighted the Pradhan Mantri Awas Yojana-Urban (PMAY-U) subsidy, under which eligible beneficiaries can receive Rs 2.5 lakh, subject to applicable guidelines and eligibility criteria. However, the repeated unsold inventory suggests that CIDCO’s challenge extends beyond construction. Pricing, apartment configurations, location, payment flexibility and connectivity may need to be reassessed before further public resources are committed.

Seven Streams, One Ambition

While Sapta Dhara offers a broad economic vision, its success will depend on whether the government can connect its engines to create jobs and enhance productivity.

AI generated image
AI generated image

India’s growth story has reached a point where we are no longer asking just how fast its economy can grow, but rather how broadly and sustainably that growth can be fostered. Referring to ‘Shakti ki Sapta Dhara’ - seven streams of strength including manufacturing, agriculture and food production, technology and innovation, Gati Shakti, defence, the green and blue economy, and soft power - in his Independence Day speech, Prime Minister Narendra Modi offered a roadmap for this next phase.


At first glance, these may appear to be seven distinct priorities. But they are, in fact, closely interconnected. Infrastructure, technology and skilled labour are essential to a competitive manufacturing sector; agriculture becomes more productive when connected to food processing, logistics and global markets; and India’s shift towards a greener economy will be increasingly reliant on innovation, infrastructure and indigenous technological capabilities. The success of Sapta Dhara will lie in bringing them together into a development paradigm that can raise productivity, generate employment and enhance global competitiveness.


One Development Strategy

What makes Sapta Dhara unique is not just the comprehensive nature of its seven pillars, but also the way in which these pillars reinforce and complement each other. Manufacturing is heavily dependent on efficient logistics and infrastructure if it is to remain globally competitive; technology and innovation need a robust industrial ecosystem for ideas to be translated into products; and agricultural transformation relies on food processing, storage, transportation and access to global markets. Even the transition towards a green and blue economy will demand technological know-how, infrastructure and new channels of investment.


This interconnectedness is particularly crucial for India, as its development challenges rarely exist in isolation. A factory may generate jobs, but its wider economic impact hinges on whether workers are adequately skilled, supply chains can efficiently transport inputs and finished products, and firms can access domestic and international markets. Similarly, an increase in agricultural productivity may not significantly raise farmers’ incomes unless agriculture is linked to processing, value addition and export-oriented supply chains. The Prime Minister’s emphasis on an integrated farm-to-export chain reflects precisely this need to create greater value addition across the agricultural economy.


‘Sapta Dhara’ is thus a set of interconnected and mutually reinforcing capabilities. The challenge is to ensure that these streams converge rather than develop in silos. For a nation aspiring to become a developed economy, the goal must be to translate investments in infrastructure, technology and productive capacity into higher productivity, better employment opportunities and greater global competitiveness.


However, for the ‘Sapta Dhara’ to translate into a meaningful development strategy, growth must ultimately translate into productive employment. India’s demographic advantage can become an economic advantage only if its growing sectors are capable of absorbing a large and increasingly aspirational workforce. This makes the employment intensity of growth as important as the growth rate itself.


The manufacturing sector is particularly significant. While technology-led sectors can create high-value employment, labour-intensive manufacturing, MSMEs and related supply chains have the potential to generate jobs on a much larger scale. The same is true for defence, where greater domestic production can contribute not only to strategic objectives but also to technological innovation, private investment and exports.


This is why skilling is a critical link across all seven streams. As production becomes increasingly technology-intensive, workers need to be equipped for a manufacturing-led economy; the green transition will create demand for new technical skills; and the growth of digital and innovation-led sectors will require a workforce capable of keeping pace with rapidly evolving technologies. Investment in physical capital, therefore, cannot be separated from investment in human capital.


The goal should be to build an economy in which output growth and employment growth reinforce each other. If Sapta Dhara can connect infrastructure and technology with productive enterprises, and productive enterprises with a skilled workforce, India will take another step towards a growth model that is not only faster, but also more employment-intensive and broadly distributed.


Global Competitiveness

Another important aspect of Sapta Dhara is the relationship between self-reliance and competitiveness in global markets. India’s quest for Atmanirbharta need not imply insularity or disengagement from the global economy. Rather, it can mean building domestic capabilities that allow India to enter global markets from a position of greater strength.


This distinction is particularly relevant to manufacturing and technology. Developing domestic capacity in critical technologies, strengthening supply chains and expanding indigenous production can mitigate vulnerabilities while also enabling Indian firms to become more competitive internationally. The same is true for defence, where greater domestic production can contribute not only to strategic objectives but also generate opportunities for technological innovation, private investment and exports.


Green and blue economy adds a further dimension to this transformation. As global demand shifts towards cleaner technologies and sustainable production, India can transition from being merely a large market for green products to becoming a producer and exporter of them. Here, technology, manufacturing, infrastructure and skilled human capital once again intersect.


The broader aim, then, should be to transform self-reliance from an alternative to global integration into a pathway towards it. By developing competitive domestic capabilities while remaining plugged into global value chains, India could make the vision of a more self-reliant India one that is also more globally competitive.


India’s next stage must be about translating its productive capacity and technological capabilities into jobs, competitiveness and broad-based prosperity. The real strength of ‘Sapta Dhara’ will not lie in the number of streams it encompasses, but in how effectively they flow together towards a common destination.


(The writer is an economics postgraduate from Jawaharlal Nehru University with research interests in economic policy, trade and global governance. Views personal.)

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