INDIA BUDGET 2013 :PC NETS BIG FISH

Not so long ago, India appeared to be cruising towards superpowerdom. Then bad weather struck, at home and abroad. With elections looming on the horizon, Chidambaram faces a twin challenge: Keep Congress hopes afloat while steering the economy out of choppy waters. He's soaked the rich, made a splash for women, and sought to shore up investments

Shankar Raghuraman | TIMES NEWS NETWORK 

    Budgets presented in the run-up to elections, whether in the preor post-reforms era, have tended to showcase how much the government is doing for the common man. What's changed post-reforms is that the 'pro-poor rhetoric' has not been accompanied by a 'soak-the-rich' posture. Finance minister P Chidambaram on Thursday bucked that trend. 
    While announcing a tax rebate of up to Rs 2,000 for those with incomes of not more than Rs 5 lakh, the FM imposed a 10% surcharge on income tax for crorepatis, who officially number a mere 42,800, and for domestic and foreign firms with taxable income above Rs 10 crore, which would leave out only small enterprises. 
    In a similar vein, he has hiked customs duty on all mobile phone handsets costing more than Rs 2,000. And has increased excise duty on SUVs—which the fine print of the Budget suggests have been defined in a manner that includes several sedans too. The duty on imported high-end automobiles and yachts has been upped too. Those buying homes and flats with a carpet area of 2,000 square feet or more, or a value of Rs 1 crore or more, will now effectively pay service tax on 30% of the value of the property, while cheaper ones will continue to pay 25% of the value. As Chidambaram himself put it in his speech, "When I need to raise resources, who can I go to except those who are relatively well placed in society?" 
    The 'pro-poor, anti-rich' stance apart, the FM was at pains to show how much the government cares for women and their empowerment. Among the many proposals directed at women was a Nirbhaya Fund for their security and empowerment, and India's first women's bank. 
    For the taxpayer, there will be an additional Rs 1 lakh available for deductions on home loan interest payments, though again only for relatively modestly-priced homes and first-time owners. There were promises too of inflation-linked savings instruments, though the details are to be worked out by the RBI. 
    For corporates, there is an incentive to invest, with 15% of spending of over Rs 100 crore on new plant and machinery in the next two years qualifying for a deduction. For the markets, there was some relief in the form of lower rates of tax on securities transactions and easier procedures for foreign portfolio investors. Against this was a fresh levy, equivalent to the tax on securities transactions, on non-agricultural commodity futures. 
AUR FOR AURAT 
One of the recurring themes of this Budget was women. TOI has long campaigned for a better economic deal for women; this is a good beginning. The FM also announced the setting up of a 1,000cr "Nirbhaya Fund" for the "dignity and safety of women". In the days following the brutal rape of a 23-year-old girl (who later died) in Delhi, TOI named her Nirbhaya (Fearless One). Other women-centric measures include: 
    First women's bank to be set up in public sector with capital of 1,000cr. Will lend to businesses that are run by women, employ women, and support women's SHGs, livelihoods 
    200cr to end "gender discrimination"; to help "vulnerable groups" like single women & widows ARE YOU SINKING OR SWIMMING? TOI HELPS YOU NAVIGATE 
    The biggest gainers from the new income tax proposals are those whose income is between Rs 2.2 lakh and Rs 5 lakh per annum. Everyone in this category saves exactly Rs 2,060 in their tax bill (including the 3% education cess). The only exception are those aged above 80, who are already tax-exempt till Rs 5 lakh and those aged between 60 and 80 who are exempt till Rs 2.5 lakh.Those with incomes between Rs 2 lakh and Rs 2.2 lakh will not have to pay any tax for next year, but how much they save depends on what their income is. A person with an income of just above Rs 2 lakh, for instance, will save almost nothing, while someone who earns Rs 2.1 lakh saves only Rs 1,030. Between Rs 5 lakh and Rs 1 crore, you neither gain nor lose in tax liability. Beyond Rs 1 crore, the extra tax bill mounts rapidly. At Rs 1.5 crore, the additional burden is Rs 4,45,990, at Rs 2 crore it is Rs 6,00,490 and at Rs 5 crore it becomes Rs 15,27,490. 
This is because the 10% surcharge applies to your entire tax bill and not just the portion over Rs 1 crore. 
    While you gain nothing from the Rs 2,000 tax rebate if your income is above Rs 5 lakh, you can still avail of the enhanced benefit on home loan interest payments. So far, interest payments up to Rs 1.5 lakh were deductible from your taxable income. The FM has now said that another Rs 1 lakh of interest payments will be allowed as a tax deduction provided your home loan does not exceed Rs 25 lakh, the value of the property is not more than Rs 40 lakh and it is your first home. If you meet these criteria, you can now 
save Rs 10,300 or Rs 20,600 or Rs 30,900 from your tax bill depending on whether you are in the 10%, 20% or 30% tax bracket. 
    While the formal IT exemption limit remains at Rs 2 lakh, you can avoid tax even with much higher incomes under certain circumstances. If you can use the exemptions for PF contributions, insurance premia etc up to Rs 1 lakh under Sec 80C, the home loan interest deduction under Sec 24 up to Rs 2.5 lakh, the exemption on savings bank account interest up to Rs 10,000 and the Mediclaim premia exemption up to Rs 20,000, you could theoretically have an income of Rs 6 lakh and be tax-free. Of course, whether all 
this is practically possible at such income levels is debatable. 
    As a consumer, your next mobile handset will become costlier as customs duty has been raised from 1% to 6% for all handsets costing more than Rs 2,000. If you are a smoker, the FM's decided you must pay more for your sin. So the excise duty on cigarettes has been hiked by about 18%. Similar hikes will apply to cigars, cheroots and cigarillos. 
SUV prices set to soar, even some sedans will cost more 
    With customs duty up from 75% to 100%, importing a Lamborghini could set you back by Rs 60 lakh, and a Land Cruiser by Rs 15 lakh. Excise duty on SUVs is also up, so even M&M's Scorpio and Toyota's Innova will cost Rs 15,000 to Rs 55,000 more. Worse, the definition of SUVs also covers Honda Civic, Toyota Altis and Maruti SX4, whose prices are set to rise by Rs 16,500 to Rs 40,000 | P 7 Tax changes to yield an extra 13k crore in direct taxes A nother change was to stipulate that where a foreign investor's equity holdings in a firm are over 10%, it would be treated as FDI, while below that threshold it would be FII investment. 
    The net effect of the tax changes is estimated to yield an extra Rs 13,300 crore in direct taxes and Rs 4,700 crore in indirect taxes. The total additional resource mobilisation of Rs 18,000 crore pales in comparison to the Rs 41,440 crore Pranab Mukherjee had proposed to raise last year. Despite the relatively modest tax mopup, the FM has managed to present a budget that apparently hikes outlays on key areas like education, health and the social sector by significant amounts—and yet contains the fiscal deficit at 4.8% of GDP. 
    There is a bit of smoke and mirrors in that image, though. Chidambaram constantly referred to how big the jumps in outlays were relative to the revised estimates for 2012-13, but chose not to dwell on the fact that when compared with the budget estimates for the same year, the increases were most often modest. 
    He is also clearly banking on being able to cut subsidies by a significant amount–next year's estimates for combined food, fertiliser and petro product subsidies is almost Rs 27,000 crore less than the revised estimates for 2012-13. Is that a sign that the government really means it when it says that fuel prices will be periodically revised? We'll have to wait and see. To be fair to the FM, he is, like Pi in Ang Lee's multi Oscar-winning film, faced with the onerous task of surviving a destructive storm and taking both the economy and his party-–not necessarily in that order—to shore. A little bit of fantasizing and optimism in such a situation is perhaps anecessary condition for survival. We can only hope it will be sufficient too.

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Ill-equipped civic markets are fire traps

Mumbai: With municipal markets not having basic fire safety equipment, they can be called veritable fire traps. Several illegal extensions, cluttered entry and exit routes add to the problem. 

    In the backdrop of the inferno in a 
godown-cum-office complex in a Kolkata market on Wednesday in which 18 people died, the fire safety of municipal markets should be beefed up, say experts. The building, housing the market in Kolkata, was unauthorized and had come up during the Left Front regime. 
    There are 103 municipal markets in Mumbai, most very old and dilapidated. The markets are in prime spots and cater to many people. "After the Crawford market fire that lasted for over eight hours, the BMC had planned to survey all civic markets for fire safety, but nothing has been done on that front," said a fire brigade official. 
    Electric wirings and circuit cabins that have been eaten up by rodents are hanging precariously in these markets. 
    The official added that since these markets were very old, the BMC can make provisions to have fire extinguishers, de-clutter the routes and also inspect the markets for storage of inflammable and hazardous chemicals. 
    "Several shops are making illegally extensions and the exits are getting narrower. Wooden wares are stocked in the lobby. If a fire erupts, it would be a nightmare for people trying to flee," said a shopkeeper at the Khar market. 
    He said several workers from these shops sleep on the market premises at night and if fire safety is ignored, it could lead to a disaster.

Wires hanging and a broken pillar at Vile Parle (E) and (W) markets

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Contractors get rich on housing for poor

Thane: The Thane civic administration could risk charges of "criminal omission" and "flawed planning" in the JNNURM-funded Basic Services for Urban Poor (BSUP) scheme , as developers and contractors reaped profits despite incomplete and shoddy construction work, say officials. 

    Six years after the launch of the welfare programme that provides near-free housing for slum-dwellers, less than 50% (2,412 tenements), of the 5,443 dwelling units, are ready for occupation 
    Against the project price of Rs228.33 crore, estimated for construction of 5,443 homes, the developers and contractors have been paid Rs 174.83 crore (an excess of Rs 73 crore), with the TMC paying Rs117 crore. The TMC's share was initially penciled in at Rs18 crore—9% of the total project cost. 
    "It is a criminal conspiracy and fraud aimed to split profits by civicofficials, contractors and political leaders. Ideally, fund disbursal ought to be in sync with the on-site physical progress achieved by the developer. In this case, the developers should have been paid 50% of the cost or Rs 101.18 crore for the 2,412 tenements built so far. Instead, the Thane corporation paid Rs174.83 crore, which simply cannot be a justified expenditure," a top bureaucrat told TOI. 
    Officials said the central and the state governments are not bound to fund the escalations arising due to implementation flaws. 
    "To ensure that the financiallyweak sections of the society are not pushed out of the city where land is premium and urbanization rapid, the Centre planned a housing scheme for the urban poor. Instead, the TMC officials and contractors have made it a profitable venture or a once-in-a-lifetime opportunity to pocket public money,'' another official said. 
    The TMC had initially secured sanction for two projects. The first project report prepared in 2007, estimated costs at Rs201.83 crore for construction of 9,423 homes, which was subsequently revised twice. The tenement units were reduced to 5,123 in January 2010 and cost reworked to Rs193.91 crore. The second DPR was for construction of 822 homes at an estimated cost of Rs 34.42 crore 
    "Of this 5,123 dwellings in DPR-1 only 1,590 homes have been built so far and work on 3,533 units is still underway," an official said. 
    "All of the 822 homes in DPR-2 have been completed but costs have soared to Rs 56 crore with TMC's share ballooning to Rs 27 crore as against its original estimated share of Rs 3 crore for these 822 homes,'' he explained.

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State okays 223cr for development of suburbs

Mumbai: The state government on Thursday approved a Rs 223.46-crore budget for development work in the suburbs. 

    Last year, the district planning committee budget was Rs 150 crore, of which 42% has been spent so far. The budget was discussed and approved by legislators from the suburbs at a meeting at Chetana college on Thursday. 
    Criticizing the allotment, Yogesh Sagar (BJP) said the suburbs have a population of one crore, which is 9% of the state's population, and the actual amount for development was only Rs 160 crore. "The balance amount is for administrative expenses, balance payments, etc. They are yet to issue tenders for work to be taken up in this financial year. Other districts get Rs 200-300 crore. How can they treat the suburbs so shabbily?" he said. 
    Naseem Khan, guardian minister for the suburbs, said there had been delays in funds being made available, and hence the money has not been spent. 
    For the first time the government will spend Rs 5 crore on building protection walls around vacant government land to prevent encroachments. 
    Khan said Rs 60 crore will be spent on welfare measures for tribals. Aarey Colony at Goregaon (E) and the Sanjay Gandhi National Park, Borivli, have a significant tribal population. 
    The government has budgeted Rs 47 crore for retaining walls in hilly areas to prevent landslides. The walls will protect slums that have come up on hill slopes and are under threat during the monsoon. Another Rs 61.5 crore will be spent on upgradation of slums and for development of open spaces in the slums, besides beautification of crematoria. "We shall provide Rs 3 crore to the Ismail Yusuf College, Jogeshwari, for infrastructure development,'' said Khan. Another Rs 35 crore will be spent on sports infrastructure, jetties and schools, he said.

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Govt rolls out airport city plan

 If things go according to plan, one will be able to shop, attend business conferences, go bowling and do much more at the Mumbai airport in the near future. The region in and around the airport's periphery is set to be transformed into a 'nano city'. 

    Two years after itwasstarted,the plan for the first phase of development of the Chhatrapati Shivaji International Airport (CSIA) has been approved by a state government-appointed scrutiny committee. It would now be put before chief minister Prithviraj Chavan. 
    While the Mumbai Metropolitan Region Development Authority (MMRDA; appointed as the special planning agency for the CSIA-notified area) was late in submitting the final plan to the government, the urban development department used a provision of the Maharashtra Regional and Town Planning (MRTP) Act to overcome the resultant lapse. The development plan includes proposals for 677.34 hectares—already notified for the airport's modernization. Another 125 hectares of notified land, under encroachment at 
present, have been earmarked as excluded portion. 
    Modelled on the 'airport city' concept popularized by Amsterdam's Schiphol airport, the development plan proposes an overhaul of land-use pattern. It argues that existing land use within and around the airport is non-contiguous and lacks character. The new plan proposes drawing up five land-use sectors within the notified area. Whileoneof these(thecentralsector)willbeused solely for aeronautical purposes, the remaining sectors will cater to hospitality, leisure, tourism and business activities, among others. 
    Bangalore International Airport has already adopted a similar development model. The idea is to transform destinations into hotspots for international passengers, tourists and business travellers. 
    For Mumbai airport, the government has approved a global FSI of 1. Planners have suggested an FSI of 4 for individual plots to improve the quality of hospitality, entertainment, commercial, healthcare and business activities.An international convention centre has been proposed on a 7,500-sq m plot within the notified area near Santacruz for business travellers. 
    While the area around the airportservesbarely 2%of airporttravellers, the new plan proposes the creation of over 11,700 habitable rooms to cater to 15% of travellers. Of the land to be taken up for development, 32.75 hectares will be used for hospitality, 17.5 for entertainment, leisure and retail, 12.5 for offices and commercial activities, 3.55 for a convention centre and cultural arena, and 0.93 for health care. 
    On theoperationsside,the plan is to augment flight handling capacity from 35-38 during peak hours to 43-50 through a network of rapid exit taxiways. This will enable flights to vacate the runway faster, allowing more landings and departures. 
A senior airport official said a network of parallel taxiways is being constructed along the two runways in phases. Once it is ready, the air traffic controller will be in a better position to crunch in more flights in 
    the same space of time, he said. MMRDA seeks entire slum land for devpt P rotests against the airport's development plan are unlikely to die down. While the Mumbai Metropolitan Region Development Authority (MMRDA) contends that all of 125 hectares of encroached land in the airport's periphery will be reclaimed in phases for airport-related development, slum dwellers are adamant about in-situ rehabilitation. The agency has only included 42 hectares of slum land in the development plan for the time being. But it says the remaining slum area would be needed in two to three years. This area (83 hectares) has been shown as 'excluded portion' in the development plan for now. Slums exist in various parts of the notified area (for example, Kurla, Sahar, Santacruz, Kalina, Agripada and Gaondevi). The MMRDA has asked the chief minister to finalize a policy for rehabilitation of the slum dwellers. Parag Alavani of the Airport Authority Zopadpatti Sangharsh Committee alleged slum land was being sought only for "commercial purpose". TNN

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REINCARNATION OF A BUILDING

Dismantling instead of demolishing could help preserve Mumbai's heritage in a contemporary setting, says MENKA SHIVDASANI

    In a city where redevelopment has become a buzzword and old heritage districts are losing their charm, Architect Samira Rathod (seen above) of Samira Rathod Design Associates (SRDA) and Spade India Research Cell (SIRCLE), has come up with an interesting proposition. What if old buildings are dismantled instead of being demolished, she asks, and various parts reused exactly as they are in a contemporary and relevant setting? In this way, according to Ms Rathod, buildings can be reincarnated to fit within the context of changing times, yet retain the soul and spirit of the building that was. 
    Ms Rathod and her team tested the concept, scouring the city for the right locations, and coming up with what they termed as 'Project Boject: Demolition v/s Dismantling', which was on display at the Kala Ghoda Festival last week. 
    From villas in Bandra to mills in Parel, and the inner city stretch of Bhindi Bazaar, they studied several old constructions until they zeroed in on four buildings in Khetwadi. This area in the inner city is undergoing extreme development and while most buildings here have heritage value, many are in a dilapidated state. Khetwadi is bound on the south by Girgaum Back Road, on the north by Grant Road, on the east by Trimbak Parashuram street and Ardeshir Dady street, and on the west by Kennedy Bridge. The area began to attract residents around 1838, and developed rapidly after reclamation at Chowpatty, and construction of Falkland and Charni Roads, which intersect it. 
    Among the chaotic spaces of this now densely packed locality, Rathod and her team found finely crafted mixed-use buildings belonging to an era that used imperishable materials such as stone and steel - stained glass, ornate railings, teak wood, blue glass and other riches. 
    They homed in on four derelict buildings in the area, Waghla Cooper 1, Waghla Cooper 2, Waghla Cooper 3 and Ishrat Chambers. Waghla Cooper 1, for instance, was a structure that was over a century old, with stained glass windows, Burma teak wood, wrought iron railings and steel members. The plot is slated to be developed into a high-rise. 
    After a detailed inventory of these buildings, the SRDA team concluded that if 70% of the total volume of old material was reused in the building, and debris was turned into debris blocks, it would be possible to achieve an overall efficiency of 90%. 
    As per section 33 (7) of Development Control Regulation applied to the inner city area of Mumbai Composite Redevelopment with different landlords, permissible FSI is 2.5 or FSI required for rehabilitation of existing occupiers plus 60 per cent incentive FSI, whichever is more. SRDA's project envisages available FSI of 8378.35 sqm for the new construction, from an existing total built-up area of 3351.32 sqm - translating into total FSI achieved of 6620.sq m, with 1758.35 sqm available for expansion. 
    Where the old structure had a café, retail and residential spaces, the new construction could include a theatre, art gallery, library, offices, and car parking. Combining the four buildings into one would provide more space and a stronger street presence. Rathod refers to it as 'Celebrating the Notion of the Small Public Space' and Architecture of 'BLIRS' - Beautiful, Local, Indigenous, Recycle, and Small. She also believes that it is possible to reuse the old material and 'upcycle' it, with the help of connectors such as the right polymers and other materials. 
    "Many people see recycling as downcycling and cannibalising," she explains. "For instance, a beautiful door will become the headboard of a bed. But we believe the material can be used in the same way - a door as a door, a window as a window… Dismantling, as opposed to destroying, will help you get 80% back, though it is a slow process, a labour of love, which we have forgotten." 
    Ms Rathod hopes that with effective urban policies, coupled with technological advancement of the craft of connectors, a new form of architecture could be introduced into Mumbai, in keeping with trends and needs of contemporary times, but retaining the respect and charm of Mumbai's heritage. "What is needed is the support of policy and finance; new industry collaborations and research to create the connectors; community acceptance for this new aesthetic and skilled and unskilled labour," she says. 
    The Chief Minister, Ms Rathod adds, has expressed interest in the concept. Whether this translates into a relevant policy remains to be seen, but certainly, it is an idea worth exploring. 
QUICK 
BYTES 
WHAT IS NEEDED IS THE SUPPORT OF POLICY AND FINANCE; NEW INDUSTRY RESEARCH TO CREATE THE CONNECTORS, COMMUNITY ACCEPTANCE FOR THIS NEW AESTHETIC AND SKILLED AND UNSKILLED LABOUR 
ROOM FOR BOTH 
HERITAGE CONSERVATION AND DEVELOPMENT ARE NOT MUTUALLY EXCLUSIVE CHOICES 
    Apanel discussion to discuss conservation in a rapidly transforming city was held at the Kala Ghoda festival, in conjunction with Samira Rathod's presentation of 'Project Boject'. Participants included Abhisheck Lodha, MD, Lodha Group; Parimal Shroff, a leading lawyer; Vikas Dilawari, Conservation Architect; Sudhir Deshpande, Structural Engineer, Aneerudh Paul, Dean, Kamala Raheja School of Architecture and Pranay Vakil, Chairman, Praron Consultancy. Municipal Commissioner Sitaram Kunte was Chief Guest. 
    The discussion, moderated by Landscape Architect Aniket Bhagwat, focused on issues related to redevelopment, the demand for housing, FSI, and the co-existence of heritage and high-rise buildings, among other things. 
    Pointing out that 40% of India would be living in urban agglomerations by 2030, and that 50% of Indians would be under 25 years of age, Pranay Vakil stressed that in trying to preserve our heritage we should not lose sight of the fact that we need to create more space to meet the increasing demand. 
    There was some discussion on the issue of compensation to owners of heritage properties, prompted by Kunte's comment that many people had objected when the heritage list was expanded in June. There is a cost attached to a building being declared as a heritage property, as the owner cannot then redevelop and cash in on the value of the location; "today, there is no way to compensate this", Kunte said. 
    Abhisheck Lodha observed that while conservation was important, India was still low on the consumption scale and it would not be possible to stop growth. "We have to do a lot of catching up before we can begin to optimise that catching up," he said, adding that heritage preservation and development could co-exist side by side; they need not be mutually exclusive choices. It was a point of view with which many people agreed.

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50% FSI boost for industries in state

Mumbai: With land acquisition becoming increasingly difficult, the state government has decided to grant an additional floor space index (FSI) of 0.5 to industries. Currently, industries are allowed an FSI of 1. 

    "In our attempt to attract more industries, especially the manufacturing sector, we are trying to do things that have not been done earlier. Increasing the FSI is one of them. This will also help the existing industries to expand without buying more land," said principal secretary (urban development department) Manu Kumar Srivastava, who is also holding the charge of industries. 
    Recently, the state government announced its industrial policy and said it wants to attract investments to the tune of Rs 5 lakh crore and create two million jobs over the next five years. One of the main objectives of the policy is to create a walk-to-work environment where residences will be in close proximity to industries so that people do not have to travel long distances. 
    "We are looking to redefine the concept of single-window clearance and are studying the various permissions required to set up an industry. We are looking for duplications, if any. We will discuss if some of the permissions can be replaced or amalgamated or if a single permission will be sufficient for a project," Srivastava said. 
    The government is working with Ernst & Young on process simplification. The new policy will be implemented from the next financial year.

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10 flat owners, agents fined 5k each in Powai

Mumbai: The Powai police fined five flat owners and their agents Rs 5,000 each for renting out flats without submitting details of lessees on Sunday. This came after a surprise check on around 60 flats in a Mhada building at Milind Nagar, Powai. The flats were given on 11-month leases. 

    The action followed police commissioner Satya Pal Singh's order of December 30, 2012, stating that action must be initiated against flat owners and agents who failed to inform the local police, irrespective of the lease period. 
    The police received a tipoff about suspicious people occupying some of the flats. "We found five owners and 
five agents violated the law. They did not submit details of the occupants, their antecedents and didn't have police approval while renting out the houses. We had information that rooms were rented out to illegal immigrants from Bangladesh," senior inspector Bajirao Bhosle said. 
    Bhosle said the action should serve as a warning to others who rent out properties without informing the cops. "The police order said owners of shops, establishments and apartments should provide detailed information about the tenants. If anyone is found violating the order, they will be fined and let off with a warning. Repeat offenders will be told to sign a bond, and if they continue violating the law they will be arrested," Bhosle said. 
    A police officer said they would extend the drive to other areas. "We have information about suspicious people occupying flats without following the procedure in some areas. We cannot take chances as Mumbai is the financial capital and the city has witnessed several terror attacks,'' a senior officer said. The police said they had even warned agents and owners of commercial buildings. 
    Some real estate agents told TOI that they do not verify antecedents of lessees. "We have an arrangement with the local police,'' a real estate agent said on Monday. 
    A suspect in the July 13, 2011, bomb blasts case had stayed in a rented house in Byculla with a fake identity. 
    The flat where suspected Indian Mujahideen (IM) commander Yasin Bhatkal stayed in 2010, with two Pakistani nationals, was registered under a false name.

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‘Poor governance’ gave rise to illegal homes in Thane

Thane: Once a city with expansive green cover, famous for its lakes and a distinct cultural identity, Thane has now turned into a poster of uncontrolled constructions, traffic congestions and smog, a legacy of policy neglect by the state, failure of civic governance and amyopic political leadership. 

    In the last 15-20 years, the unplanned redevelopment in Naupada, Kopri and Uthalsar, illegal multistoried chawls and slums in Wagle Estate, Vartak Nagar, Kalwa and Kharegaon and the automobile-dependent development on the outskirts of Ghodbunder and Kolshet has turned Thane into one big urban sprawl. 
    The leafy, laid-back neighborhood of yore is now a bustling bedroom suburb of Mumbai, where 72% of the total 2.79 lakh homes are illegal. In the commercial sphere, 61% or 21,828 shops and business units of the total 35,304 are illegal. 
    "The reason for the mess is neglect by state urban planners. The basic needs of a growing city such as budget housing, land-use policy, transportation, etc, have been neglected. In the absence of adequate affordable homes, people are compelled to take shelter in illegal chawls and slums. Mhada, has failed to provide adequate housing stock in Thane despite availability of huge land parcels. The common man is left at the mercy of construction czars, fly-by-night realty firms and slumlords who reap benefits in the absence of legal and affordable homes provided by the state," said Shiv Sena MP Anand Paranjape. 
    Quoting a Mhada publication statistics, Paranjape said, Mhada built a mere 3,311 tenements in Thane city, Kalyan and Ulhasnagar in the last 35 years, while 8,068 residential plots were given away to co-operative groups for housing. Prior to the creation of Mhada in 1977, the Bombay Housing Board had built 2,854 houses in Thane under the State Industrial Housing Scheme (SIHS). 
    The slum redevelopment plan too failed in Thane as the FSI component is restricted to 2.5 as against 3 in Mumbai. "While the carpet size of the free sale tenement is fixed at 269 sq ft in Mumbai and Thane, the extra FSI given to Mumbai developers is denied to Thane builders," said Paranjape. 
    An "ineffective" civic administration which has failed to implement Thane's Development Plan (DP). A Thane based-activist, Nitin Deshpande, said, "The civic governance has collapsed because of the powerful cartel of contractors, civic officials and political leaders who profited from unauthorized constructions." 
    Prominent architects, who requested anonymity, said Thane's 1999 DP identified and reserved 802 plots for parks, playgrounds, crematoriums, public schools, commercial shops etc. "Most of these were encroached as civic officials, in cahoots with slumlords and politicians, failed to acquire them in time. Over 250 reserved plots were illegally occupied by slumlords, who built chawls and buildings and sold the tenements at easy-on-pocket rates. Plots reserved for roads, service ways, schools, etc, were gobbled up by the informal housing industry. The Wagle Estate, Kalwa and Kharegaon belt reflects absence of civic governance," an architect said. 
    "Adequate thought is not being given by the administration to the land-use plan for the 500-plus acres of industrial land in Thane-Kalwa belt, which would be put on the block for residential and commercial use following closures of industries," the architect said. 
    "Thane was treated like a fiefdom with a top Sena leader running the administration without any progressive ideas. For instance, the Thane Municipal Transport (TMT) was turned into a feather-bed for sympathizers or activists of the ruling party who were recruited on whims, never mind if they met the standards, " said NCP leader Jitendra Awhad. LOST IN TRANSFORMATION 
72% of the 2.79 lakh homes in Thane are illegal 61% or 21,828 business units of the total 35,304 are illegal 
    3,311 tenements were built by Mhada in Thane city, Kalyan and Ulhasnagar in the past 35 years, while 8,068 residential plots were given away to cooperative groups for housing. Prior to the creation of Mhada in 1977, the Bombay Housing Board had built 2,854 houses

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Mhada to spend 5,000 cr to redevelop 56 of its colonies

Mumbai: The Maharashtra Housing and Area Development Authority (Mhada) has envisioned a Rs5,000-crore project to redevelop its housing colonies on its own, instead of letting private developers walk away with profits. 

    It will utilize portions of the sprawling housing societies to build 10,000 affordable homes after rehabilitating its tenants. 
    But housing industry sources are sceptical about Mhada's plan taking off, as tenants have got more lucrative offers from builders, including larger homes. 
    Last month, Mhada decided to start with redevelopment of a portion of the 62-hectare Tagore Nagar colony in Vikhroli. Mhada sources said they narrowed down on a 23-hectare parcel of Tagore Nagar. In the first phase, Mhada will redevelop 800 ground-level structures on six hectares and provide new 450 sq ft tenements to each family, the sources said. 
    Officials said the 56-odd Mhada colonies here can generate substantial affordable housing. "Private developers will be severely affected if a government agency redevelops the colonies. They are offering unworkable incentives to existing occupants,'' they said. 
    In some cases, officials said, builders offered five times the area occupied by a tenant and Rs5-10 lakh incentives. "Each builder tries to outbid the other and creates discord among residents of colonies. As a result, no development has taken place till date,'' they said. "The government has decided to develop the colonies on its own under section 33(5) of the development control rules (DCR), allowing permissible FSI of 1.25. 
    Mhada plans to develop the colonies by offering them to reputed contractors purely on a contractual basis. "The contractors must have suitable credentials to be able to execute the projects in a time-bound manner and must have sufficient financial credentials,'' said officials. Contractors who have defaulted with Mhada will be debarred from participating in the tenders. Occupants of tenements in these colonies will be given a fixed increase in carpet area (40-50%) and will be offered a new tenement with modern facilities. All occupants will be given identical benefits. 
    But construction industry sources said developers like Godrej Properties had signed agreements with tenants of Tagore Nagar and offered them 1,000 sq ft apartments, as against Mhada's 450 sq ft. 
    "Housing societies have also been offered a corpus of up to Rs30 lakh. Why would they agree to Mhada's proposal?'' they said.

Mhada decided to start with the redevelopment of a portion of Tagore Nagar colony in Vikhroli

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MIDC demands SRA-like status to keep slums at bay

Mumbai: The Maharashtra Industrial Development Corporation (MIDC) has sought power similar to that of the Slum Redevelopment Authority (SRA) to tackle the proliferating slums in industrial estates. The MIDC has 276 industrial estates across Maharashtra. 

    The SRA allows a floor space index (FSI) of 3 for redevelopment. Each eligible slum-dweller is entitled to a 300 sq ft free house. The developer is offered a sale component, which is included in the 3 FSI. 
    MIDC's chief executive officer Bhushan Gagarani said that if granted the status accorded to the SRA, the corporation would rehabilitate the slums within the industrial estate itself. The slum encroachment problem is acute at Wagle Estate, Thane, Turbhe-Mhape industrial estate and in Pimpri-Chinchwad. In the prime industrial estates, nearly 616 acres is encroached upon. The number of hutments in these industrial estimates is estimated to be 65,000. 
    With increasing urbanization, most industries have moved out of these industrial estates as the cost of labour, 
transport and power has gone up. For instance, Wagle Estate has the large number of residential buildings. 
    Eknath Shinde, secretary of Thane Small Scale Industries Association, said that nearly 100 plots in the Thane Trans-Creek Industrial Estate have been encroached upon by slums. "To add to it, the builder's lobby has been applying for creating IT-enabled services under the IT policy and are instead creating residential complexes and selling them at market rates. There is no check on these constructions either," he said. 
    Sandeep Parekh, vicepresident, Thane Small Scale Industries Association, said over 80% of slum-dwellers worked in the industrial estates and the move would benefit the workers. However, he warned, if there is no demarcation between industries and residential areas, it might result in industries being forced out. 
    "The Thane Trans-Creek Industrial Estate has chemical industries. According to the law, there should be no residential complex within 1 km of any chemical industry. We have asked the government to ensure that the residences do not come up close to the industries and rather in a corner of the estate, away from the industries," he said

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Review FSI policy to increase affordable hsg in Mum: Centre

Mumbai: The city's skyline may have more skyscrapers in future if the state authorities consider the central government's recommendation to review theFSI policy for Mumbai to meet the affordable housing demand. The recommendation came on Monday. 
    Union housing minister Ajay Maken said megacities like Mumbai needed to review the FSI (floor space index) policy to encourage more affordable housing. He said affordable housing should now be accorded the status of basic infrastructure to facilitate more stock of affordable houses for the urban populace. He was addressing a meet on 'Challenges in Megacity Governance', organized by the Confederation of Indian Industry (CII) in partnership with Centre for Policy Research (CPR), New Delhi. CII president Adi Godrej presided over the inaugural session. 
    Maken said, "About 50% of population in Mumbai stay in slums. In cities like Delhi, about 84% homeless people are selfemployed and contribute towards the economic growth. Since they live close to their workplaces, irrespective of the location categories, we need to create affordable housing even at premium locations of megacities. It is required to bring these service providers nearer to consumers." 
    He added, "There is a need to make appropriate changes in the FSI policy to boost affordable housing in Mumbai. The state is the responsible authority to do so and, in our opinion, it should consider this option." 
    About the initiatives at the central level, Maken said the policy for providing 'Infrastructure Status' to affordable housing schemes is on the cards to improve the urban housing scenario. "This can be treated as a sub-sector of real estate and at least, this sub-sector can be given the infrastructure status," he added. 
    Earlier, inaugurating the programme, Adi Godrej said, "India has witnessed rapid urbanization in the last two decades which is going to increase over the period of time. India will need $800 billion in the coming years towards urban development and out of which $350 billion will go towards building urban roads alone. Administrative reforms, urban service delivery reforms and many such initiatives are the need of the hour." 
    In his remarks, K C Sivaramkrishnan, 
Chairman, Centre for Policy Research, said, "Urbanization has become social, political and economic reality. Megacities contribute about 14 to 36% of the GDP to their respective states. The urban centres have also become very critical in deciding the political leadership at the State and Central levels." 
'Policy soon for slums on central plots' U nion minister Ajay Maken, who met CM Prithviraj Chavan on Monday, said his ministry will soon table a proposal for the rehabilitation of slums located on central government plots. With a sizeable percentage of the city's shanties situated on such land, the state has been pushing for a redevelopment policy for them. 
    Chavan demanded a separate policy framework under the Rajeev Awas Yojana (RAY) for the state, arguing that the existing guidelines were not sustainable in Mumbai, Thane and Pune. Maken reportedly said a separate policy framework will be difficult. The state will have to bear additional financial burden to push affordable housing schemes. The housing ministry has rejected a demand for extra grants for construction of tenements under the Integrated Housing and Slum Development Programmes and Basic Services for the Urban Poor. The state drew flak for shoddy implementation of these schemes. TNN

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