BMC wants cluster-scheme bar raised for urban renewal

The BMC has sought an increase in the minimum area for cluster redevelopment from one acre to five acres. It also wants that old and dilapidated buildings should receive more incentive floor space index (FSI). These requests, to the urban development department, are part of municipal commissioner Subodh Kumar's wider plan for Mumbai's urban renewal, for which he has set up a committee. It will suggest ways of carrying out redevelopment with an eye to create facilities like wide roads, parking lots, open spaces and educational institutions. 

    The cluster redevelopment policy when launched in 2009 had mandated a minimum acreage of 10. But this was reduced to one under pressure from developers. Despite the concession, only five projects were approved, the largest being the 14-acre Bhendi Bazaar project that is being implemented by the Bohra Trust. 

    Kumar says cluster redevelopment should be big enough to enable road widening within the area and on the periphery, and to retain Development Plan reservations. As per the policy paper, "Since managing a (cluster redevelopment project) is more difficult and the implementation period is long, involving higher interest costs, incentive FSI shall be more liberal as compared to that (for the old and dilapidated building redevelopment scheme)." 

    Kumar has proposed that there is no need to give a uniform FSI of 4 to all cluster projects. "Since it (will be) an area development scheme on minimum five acres, it will be possible to utilize higher FSI in situ, without creating congestion." 

    Utsal Karani, secretary, Janhit Manch, said the proposal would enable the creation of better civic infrastructure. "It will bring in builders with better track records, who will ensure that they deliver on rehabilitation as well as civic infrastructure." 

    Kailash Agarwal, proprietor, Nish Developers, who has already undertaken a seven-acre cluster redevelopment project in Parel, said such projects were the only way to bring about urban renewal. "If the requirement is only one acre, it is difficult to put in place a sewage treatment plant and solar panels, and create open spaces. A larger area allows for such amenities to be set up. Also, with one-acre plots, the city will never get wide roads." 

    Agarwal said he had been urging government officials to study his project, understand the difficulties and tweak the policy so that implementation of future projects became easier. 

INCENTIVES FOR PROJECT 

New proposal by Mhada 

and BMC to boost cluster 

redevelopment Provide 10-20% additional rehabilitation area to tenants/occupants Increase ceiling of incentives offered to developers from a maximum of 70 sq metres to 100 sq metres Revise area-sharing ratio between developer and Mhada/BMC from 0.5:1 to 1:1 Create one-window system with Mhada as approving authority Remove FSI cap of 4 for cluster schemes Give developer incentive FSI of 80% against every 100 sq ft of rehab area, including accommodation reservation like housing for displaced, schools and hospitals Cluster Redevelopment Policy 

    The state has adopted a policy for private redevelopment of dense housing clusters spread over areas of one acre in the island city 

    The policy offers a floor space index (FSI) of 4 or that required for the rehabilitation of existing occupants, whichever is more, plus an incentive FSI to developers taking up reconstructing of pre-1960 buildings 

    Developers can commercially exploit an area that is 55-80% of the rehabilitation area Why is the scheme not taking off? 

    No dilution of reservation as sought by developers 

    Lack of clarity: BMC and deputy collector (encroachment) disclaim any responsibility for certifying legal slums and evicting illegal shanties 

    Mhada disclaims any responsibility for taking action against the balance 30% of tenants who refuse to give consent 

    Tenants revoke consent when a competitive builder offers additional benefits, despite a scheme getting high-power committee nod 

    Not all is well for tenants. Those owning two flats in a building refuse to give consent as under the policy they are entitled to only one 300-sqft rehab flat 

    Developers want additional FSI for developing amenities like schools and dispensaries 

    No mechanism exists to resolve dispute between multiple government agencies, developers and tenants