No vertical limits for highrises, rules only advisory

Mumbai: There are no vertical limits for the city. Restrictions imposed on highrise activity by the Union environment ministry aresettobe relaxed. 

    In April last year, the environment ministry issued guidelines linking the height of the building with the width of a road anditsdistancetothe nearestfirestation. 
    While the guidelines were earlier mandatory, sources said the environment ministry decided to render them "advisory" following objection by thestate. 
    The ministry has earlier arguedthathighrisesin congested areas putthelifeof itsoccupants at risk during emergencies. Going by the guidelines, a structure higher than 60 m (20 floors) was permitted only if the width of the roadin frontof itwas 30 m or more. Also, its distance from the nearest fire station had to be 2 km or less. A 45-60m structure (15-19 floors) was allowed on 24-m-wide roads and its distance from the nearest fire station had tobewithin 5km. 
    Arguing that the norms would bring construction in Mumbaito a standstill,chief minister Prithviraj Chavan had sought relaxation in provisions.Hehad saidin Mumbai,wherelandwas scarce, redevelopment of dilapidatedbuildings andslumscould only beundertaken vertically. 
    After Chavan met Prime Minister Manmohan Singh, the latter constituted a committee ledby planning commission member Dr K Kasturirangan to lookintotheissue.The panelis yet tosubmititsfinal report,butthe ministry has indicated that the normswill notbe mandatory. 
    An announcement may be made during Union environment minister Jayanti Natarajan's visit to city on April 2. The state will alsoflagtheissueof moratorium on development activities in Ratnagiri and Sindhudurg. HigherFSI for Mhada layouts T he state will increase FSI for redevelopment of 5,000 societies on Mhada plots. The FSI on gross plot area will rise from 2.5 to 3.Retaining a condition, which requires a private builder to share surplus built-up area with Mhada in the 33:67 ratio, the state will link the developers' incentive to ready reckoner rates.

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Govt incentive for revamp of societies onMhada plots

Mumbai: The government will offer a slew of incentives to the occupants of the 5,000-odd societies on Mhada land to encourage them to go for redevelopment and curb unfair practices. 

    Based on the nature of development opted for, occupants will be offered 35% to 60% additional area as incentive, a senior state official said. To curb unfair practices used by developers to lure societies, the state government has also decided to introduce a cap on maximum tenement size. The societies house about 1 lakh people. An official notification regarding the new rules will be issued in the next few days, the official said. An extra 35% area will be offered to occupants of all societies opting for redevelopment. Those opting for cluster redevelopment will be offered another 15% area as incentive, whereas those opting for Mhada as developer would get another 10% area. —Sandeep Ashar

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HC ON CESSED BLDGS Extra FSI for 2k redevpt projects in island city

Mumbai: A Bombay high court verdict has paved the way for about 2,200 redevelopment projects in the island city to avail of additional FSI. 

    A bench comprising Justice A M Khanwilkar and K K Tated, on March 20, struck down a condition imposed by 
the government for grant of additional FSI in the case of ongoing redevelopment schemes for old cessed buildings. 
    In May 2011, while modifying development control (DC) regulations to increase FSI for such redevelopment projects from 2.5 to 3, the state had imposed arider that in case of ongoing schemes, it can only be availed if the construction of the rehabilitation building had not progressed beyond the plinth stage. 
    A Mhada official informed that there were about 2,200 ongoing projects. A developer, J Gala Enterprises, had challenged the condition on grounds that the condition was "unconstitutional and ultra-vires". 
    The court ruled that extra FSI could be availed by ongoing incomplete redevelopment projects (where full occupation certificate has not been granted) on submission of structural stability certificate by a certified licensed engineer. Claiming that implementation of the judgment could lead to a trend where developers do not apply for full occupation certificates, Mhada has decided to seek a stay on the implementation.

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Rural folk driving own economy

Mumbai: Indian villages are powering their own economy, but contrary to conventional belief, it's not government largesses which are the drivers, but their own self-sustaining models. Growth at the bottom of the pyramid is at unprecedented level, and the transformation is stark. 

    The factors driving this transformation are dramatic improvements in rural roads, electrification, cell phones and water supply which are raising wages and increasing job opportunities for thousands living in villages. This, in turn, is fuelling demand for consumer goods, and for those companies which have a strong rural push. 
    Case studies from fieldtrips and research undertaken by Credit Suisse show that the growth in productivity is becoming sustainable as jobs in manufacturing drive services jobs in transportation and trade, enabled by mobile phones and roads. 
    Research over the last couple of years by independent sources has confirmed that use of cell phones benefited a diverse set of people—from fishermen to sari weavers. Most of the studies focused on price discovery in agriculture or on skilled artisans improving customer service or price realizations. 
    D K Joshi, chief economist at Crisil, says, "Overall, there has been a definite improvement in the rural economy. Villages have become self sustaining, providing a big push in manufacturing jobs. Roads are increasing demand for vehicles, while cell phones trigger more goods and services. However, a lot more is required; the success stories need to be replicated in a number of areas." 
CHANGING FACE OF INDIAN VILLAGES 
    Village textile stores now stock pre-stitched branded clothing 
    The second hottest-selling item in a rural grocery store is packaged 
gulab jamun instant mix 
    Rural areas have a higher penetration of direct-to-home 
devices for receiving TV content Two in every five mobile subscribers are now rural 
40% of demand for cement comes from rural housing 
Most surprisingly, poultry farming created more days of work per person than the jobs guarantee programme (between 2005 and 2010) Rising wages, land prices spur rural purchasing power 
Mumbai: The face of the rural Indian economy is changing for the better. Access to roads is helping landless people raise poultry (chicken) within limited floor space and sell their produce in nearby towns. In fact, poultry farming created 3.8 million jobs between 2005 and 2010: the 950 million person days of work thus created every year is the same as that by the government's NREGA in the same period. 
    Road access significantly improves land prices, labour mobility, wages and alternative employment avenues, says a study by Credit Suisse. 
    For example, production of mannequins has moved from Ulhasnagar outside Mumbai to villages in Rajasthan, while other examples like pottery (Orissa), saris (West Bengal), furniture (Himachal Pradesh), are all potential jobs difficult to carry out in remote villages previously, but are now made easy by road connectivity. 
    The study found a strong correlation between per-capita output and road networks (represented by vehicle penetration) both within and across states. 
    Since about 80% of the country's rural households own less than two acres of land, they are therefore wage dependent. Analysts point out that this wage growth is largely productivity-driven (and therefore sustainable to a large extent), providing a floor to India's cratering economic growth, and even in the absence of major infrastructure projects taking off, there are substantial changes in basic infrastructure that are taking place in areas other than big cities. 
    Over the last five years, rural wages have increased at an unprecedented 20% CAGR, with land prices appreciating sharply as well. Both have ended up putting more money in the hands of people, and generating purchasing power, experts say. Fast-moving consumer goods companies are enthused with the strong rural demand as it augments their sales. 
    In some cases like Emami with products, offered in 30 lakh rural outlets, including Navratna Oil, Fair and Handsome cream, Zandu Balm, BoroPlus cream, has nearly 50% of sales in some categories coming from rural markets.
    Says N Krishna Mohan, CEO, sales, supply chain & human capital, "We are going to focus on specific brands/stock keeping units and increased outlet coverage in villages/ towns in certain states where we have a strong direct coverage. In other markets, we would be working on ensuring that at least 80% of the villages with a population of 10,000 and above are put under the coverage map by the end of the next fiscal". 
    Another company, ITC, which offers Sunfeast biscuits, Vivel soaps, Superia soaps and shampoos, has been able to tap the rural segment through its e-choupal network. Says an ITC executive: "The divide between urban and rural markets has narrowed down and hence we have expanded our basket of offerings in rural India. Given the vast reach and penetration, ITC has devised mobility solutions for monitoring progress and instant information dissemination". 
    Sales of white goods like refrigerators, and consumer durables like LCD televisions have surged in villages. 
    Private banks have also realized that villages can be the next engine of growth. This is because the share of saving deposit for non-urban branches is high (42-50%) as against the 15-30% in metro/urban branches.

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TIME FOR AN UPGRADE As India moves towards greater urbanisation, it is vital to ensure holistic planning and good governance, says

Mahatma Gandhi may have once pointed out that India lives in its villages, but much has changed in the 64 years since Independence, and new cities continue to grow in the country. This growth is haphazard and unplanned, as residents of Mumbai will agree, but there is no denying that metropolitan regions remain attractive to millions of migrants who make their way, even if it is to the city footpaths, to find their fortunes. Experts point out that there will be a doubling of Indian urban population from 280 million to 560 million from 2001 to 2025; they also observe that cities contribute more than 70% of GDP, and are crucial for economic development. However, they suffer from deficiencies in urban infrastructure, citizen services, and governance mechanisms. 

    Much has been spoken on the issue in recent times, both in Delhi, where policies are made, and in Mumbai, which is in great need of good governance. On March 13, over 700 delegates from 100 Indian cities, met in the capital for Municipalika 2013, the 11th International Conference & Exhibition on Good Urban Governance for Safe, Healthy, Green, Inclusive and Smart Cities. In his Presidential address, Arun Kumar Misra, Secretary, Ministry of Housing & Urban Poverty Alleviation, spoke of the mammoth needs for urban housing for economically weaker sections and low income groups, and of the need for a multipronged approach to make affordable housing a reality. Highlighted were problems of slum housing for sheltering nearly 90 million. Some positive initiatives for urban housing through interest differential, cost-effective technologies and innovative use of land were alsoanalysed. Rick Fedrizzi, Chairman, World Green Building Council, spoke of sustainable urban development in the context of climate change and stressed the need for optimum, efficient use of resources – water, land, energy and renewable energies – and support national, provincial and local city governments can give to sustainable green built environment. 
    Earlier in Mumbai, at an international workshop on the governance of megacity regions on February 4, experts pointed out much the same thing. The symposium, organised by Centre for Policy Research (CPR) and Confederation of Indian Industry (CII) was focused on a draft report for the Ministry of Urban Development, Government of India, titled 'How to Govern India's Mega Cities: Towards Needed Transformation'. On the occasion, K Sivaramakrishnan, Chairman, CPR observed that megacities are a demographic, economic and political reality, playing a major role in GDP growth – as much as 14 to 36 per cent - and with a global presence and international obligations. The five metros covered – Mumbai, Kolkata, Chennai, Hyderabad and Bengaluru - account for 68.5 million people, which is about 18 per cent of the country's urban population. 
    It was at this event that Ajay Maken, Union Minister for Housing and Poverty Alleviation made his widely quoted comment about how megacities like Mumbai must review Floor Space Index (FSI) policy to encourage affordable housing. The minister stated that the policy for providing infrastructure status to affordable housing schemes was on the cards. 
    CPR spoke of how governance of these big city regions required participation of multiple stakeholders, including national and provincial governments, city governments, business and industry, political representatives, civil society and others. They underlined the need for a single strong entity, such as a Chief Executive Officer, to take holistic decisions. In Mumbai, for instance, as Narinder Nayar, Chairman of Bombay First pointed out, 17 agencies run the city – "some responsible to the State, some to the Centre, and all with narrow agendas. "We have an able orchestra for Mumbai," he observed, "but no conductor. We need a CEO for Mumbai." 
    Infrastructure was one of the core issues discussed at both events. At the Mumbai symposium, Adi Godrej, President, CII, said, "India would need $800 billion in the coming years towards urban development and out of which $350 billion would go towards building urban roads. Administrative reforms, urban service delivery reforms and many more such initiatives are the need of the hour." 
    If megacities are to achieve their potential, there is no denying that the real estate sector must play a large role. Lalit Kumar Jain, National President, CREDAI and CMD, Kumar Urban Development says: "Any city is livable or otherwise based on the quality of physical and social infrastructure as well as ease and cost of living. Mumbai needs to upgrade its physical infrastructure first. Networked public transport is a necessity. The introduction of metro - monorail across the city is definitely a good step; however, it's neither enough nor well integrated." Jain points out that making Mumbai a livable city is everybody's responsibility, right from citizens, government and the real estate sector. "Government and real estate should work hand in hand," he explains. "Mass rental housing, affordable housing for low income groups and economically weaker sections with enhanced FSI limits and special housing zones on the outskirts like Navi Mumbai and Thane and Mira-Bhayander are some of the suggested solutions. "Real estate and infrastructure development need to be looked at as a single phenomenon while planning a city, rather than in isolation," he says. "A sealink is not the answer, what Mumbai needs is homes at lower cost, a better public transport system and better connectivity." 
    Lalit Kumar Jain and other developers have repeatedly stressed the need for policy changes. Sukhraj Nahar, Chairman and Managing Director, Nahar Group, for instance, says: "Mumbai has now emerged as a global financial hub. The city has witnessed unprecedented growth in the last decade. Considering the huge inflow of population across the country in Mumbai, it requires a massive overhaul as far as governance is concerned." 
    Nahar echoes what CREDAI has been highlighting for years – that there is a need to create a single window clearance system for projects, be they of private real estate developers or governmentowned agencies like CIDCO, MHADA and HUDCO. "Currently various authorities are involved in planning and implementation of various ongoing projects in Mumbai, I think, there should be only one system that can take care of planning and implementation of projects in the metro city to avoid any confrontation." He also suggests that a full-fledged cabinet post be created to focus on policy issues and development of Mumbai. 
    Dhaval Ajmera, Director, Ajmera Realty and Infra India Ltd adds: "Infrastructure and real estate are the two vital engines of a city that provide the basis for economic growth…. The biggest bugbear is that there is a paucity of consent on the projects by the concerned authorities." 
    Ajmera also speaks of the need for single window clearance, and more infrastructure projects in Mumbai. A separate monitoring cell should be instituted to ensure projects are completed on time, he adds, and greater public-private partnership (PPP) to encourage better and speedy implementation of infra projects. "Besides an authoritative consent on industry status to the real estate sector would ensure speedy approvals which would in turn bestow the city with the indispensable face-lift," he observes. 
    Everyone in government seems to have the solutions. Municipalika 2013 also had a range of solutions on offer. The deliberations stressed the need for incremental sustenance and the role of the private sector and communities to bring in resources, technology, management and improved innovations for housing and infrastructure development. The new mantra for development has to be Public-Private-People's Partnership (PPPP) as against PPP, they said. Speakers also spoke of the immense potential of decentralisation and involving stakeholders at the local/micro level and monitoring and execution of projects in the decentralised mode with intense community participation. 
    The opportunities are huge. As Dr Prem C Jain, Chairman, Indian Green Building Council (IGBC) pointed out at Municipalika, "Since 60% of the buildings that would exist in 2030 are yet to be built, we have a big opportunity to develop environment-friendly cities in the country." 
    The real estate sector will certainly play a huge role in this development, but only if the right policies are in place. As Niranjan Hiranandani, MD, Hiranandani Group, had pointed out at another seminar in the city last month, there is a difference between talking the talk and walking the walk. Everyone knows what to do, but no one actually does it. The recent Union Budget was only one more example of how the real estate sector is neglected, time and again. 
    INPUTS NISHA SWAMI

QUICK 
BYTES 
    EXPERTS POINT OUT THAT THERE WILL BE A DOUBLING OF INDIAN URBAN POPULATION FROM 280 MILLION TO 560 MILLION FROM 2001 TO 2025 
    DEVELOPERS WILL PLAY A LARGE PART IN MEETING THE CHALLENGES OF THIS GROWTH, BUT THE RIGHT POLICIES MUST BE IN PLACE

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Realtors Cut Prices to Bring Back Buyers Builders such as Lodha Group, Godrej Properties offer discounts to prop up home sales in a dull market

Builders have begun to bring down prices to prop up home sales in an abysmally dull property market, gladdening the hearts of potential buyers. About a month ago, Mumbai builder Lodha Group, which had bought DLF's Lower Parel land last year, and launched a luxury project on the site, sold its entire inventory in ten days by pricing these apartments at an 18% discount to the prevailing market rate. In all, 750 . 3.5 crore-. 6.75 crore homes were sold like hotcakes. 

Another Mumbai builder Godrej Properties tried a similar trick in Delhi's upcoming real estate hotspot — the Dwarka-Manesar expressway. It sold all its 700 apartments on the launch day, when projects all around it were still chasing buyers. 
"It's all about finding the right price point," says Anshuman Magazine, chairman & MD, CBRE South Asia. "In our main cities, real estate prices are much higher than they should be and real prices should be lower," he adds. But all that is changing for now. And it is the big builders who are taking the lead in cities around the country, forcing others to rethink. 
L&T Realty launched Emerald Isle in Mumbai's lakeside Powai area at . 15,500 per sq ft creating a flutter in the area where the market rate is over . 17,000 per sq ft. Nirman Realtors & Developers launched its project at Malad at a 20% discount for bulk buyers and sold most of its inventory. On the Dwarka-Manesar Expressway, Emaar MGF sold 250 units in its project Gurgaon Greens in just a week this January by aggressively pricing it at . 6,000 per sq ft while other projects were priced at . 7,000 per sq ft. 
On the same stretch, Adani Realty, which launched its first project in the NCR region, launched 500 apartments, which got oversubscribed by three times within three days, says Tarwinder Singh, CEO. 
"Several builders are driving volumes through disruptive pricing," says Abhay Khemka, owner, Khemka Investments & Properties, a real estate brokerage firm in Gurgaon. "This is the right pricing. We are expecting others to follow suit." 
In Bangalore, where sales in most projects are usually gradual, Provident Housing saw about half its stock of 548 apartments in a newlylaunched property Provident Harmony being snapped up in 10 days as the developer brought down the overall ticket size by reducing the size of the apartments. 
"There is a new requirement from buyers, which is about the right size and right price. Many builders make the mistake of launching larger size apartments, making it unaffordable for buyers. We decided to stick to certain profitability (factors) by pricing them lower than competition," says Jackbastian K Nazareth, CEO of Puravankara Projects, the parent company of Provident Housing. 
Lodha, which bought the NTC mill land in Lower Parel from DLF for . 2,725 crore last year, got 1,300 applications for the 750 apartments it had launched in the project codenamed Blue Moon. "We wanted to challenge the convention in south Mumbai by offering luxury residences here at ticket sizes up to 50% lower than those currently available," says Abhisheck Lodha, MD, Lodha Group. 
Home sales across the country have lagged in the last few quarters because of the overall negative market environment, accentuated by high property prices in many locations. Homebuyers have been sitting on the fence, waiting for property prices to correct and that put developers in a spot of bother. This has pushed up the level of unsold home inventory across the country dramatically to 602 million sq ft at the end of the December quarter, which would take up to 29 months to be sold at the current pace of absorption. 
"Mumbai and NCR have been facing a problem of high prices for a number of quarters but now even other more affordable markets like Pune and Bangalore are heading in that direction. Sometimes, greed takes precedenceover efficiency impacting both the consumer sentiment and productivity of the developer," says Pankaj Kapoor, MD, Liases Foras, a non-brokerage real estate research firm. 
In the past few months, though, many developers across the country have reduced prices. The move has led to better take-off in sales. "This shows that pricing was the main concern of homebuyers," says Lalit Kumar Jain, national president of the Confederation of Real Estate Developers Associations of India. Jain's company Kumar Urban Development launched a township project KUL Nation where it sold 400 apartments in a week, with pricing that was 10-15% lower than competition. Noida Extension is another location where pricing has played a big role in reviving sales. Even after the land issues faced by the area, homebuyers have flocked here. "Prices here are much lower than Noida, which is just a stone's throw away," says Shiv Priya, ED at Amrapali Developers. 
The trick, says Ashish Jerath, vicepresident, sales at Emaar MGF, is to find the sweet spot in terms of pricing and ticket size if you have to sell large numbers quickly. What also worked in Emaar MGF's favour was the fact that the company launched smallersized apartments compared to other projects in the vicinity, reducing the ticket size, just like Provident Housing did in Bangalore. 
ravi.sharma@timesgroup.com 

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Maha tops census list with 21k slum blocks in India

1 Out Of 6 Urbanites Live In Slums Across Country, Shows Data

New Delhi: Nearly one in every six urban Indian residents lives in a slum, newly released census data shows. The new numbers are significantly lower than the slum growth that had been projected for India. 

    "Our own projections were that the all-India slum population would be 27.5% by 2011, so the new data comes as a pleasant surprise," Arun Kumar Misra, secretary in the ministry of housing and urban poverty alleviation, said. Slum populations in individual cities like Mumbai was also lower than expected, Mishra said. 
    The census defines a slum as "residential areas where dwellings are unfit for human habitation" because they are dilapidated, cramped, poorly ventilated, unclean, or "any combination of these factors which are detrimental to the safety and health", registrar general of India C Chandramouli said. 
    Roughly 1.37 crore households, or 17.4% of urban Indian households lived in a slum in 2011, data released by the Registrar General and Census Commissioner's office showed. The new data is difficult to compare with previous years, because the 2011 Census covers all 4,041 statutory towns in India, as compared to 2001 when only statutory towns with population over 20,000 were covered. The 2001 data had set India's slum population at 15% of the total population. 
    The census counted slums notified under various acts, those recognized by governments but not notified, and those that were in no way accepted by state governments, but fit the definition of a slum. Housing and Urban Poverty Alleviation minister Ajay Maken said that the high proportion — over 37% — of slum households in this last, unrecognized, category was a serious problem, and committed to his ministry extending benefits like the Rajiv Awas Yojana to such slums too. "State governments are unwilling to admit to their being more slums in their cities because then they will have to provide these slums basic services like water and drainage," Maken said. 
    With the exception of sanitation, the indicators on housing amenities for slum and non-slum households in most of India are more similar than most would expect. Over 77% are permanent and 70% are owned, and not rented. Close to half are made up of just one room and most are home to one married couple. Over 70% of slum households get their water from a tap but just half get water inside their homes. Over 90% get electricity and most use LPG for cooking; 70% have a TV and 10% even a computer. The census data seems to indicate that the "more cellphones than toilets" line might be wrong for urban India: two out of three slum households have a toilet within the premises, while slightly fewer have a mobile phone. 
    More than one in five urban households in AP, Chhattisgarh, Madhya Pradesh, Odisha, West Bengal and Maharashtra lives in a slum. In absolute terms, Maharashtra has the highest number of slum blocks of any state – over 21,000 out of a total of just over 1lakh for the whole country. 
    Over a third of India's slum population lives in its 46 million-plus cities. Of the metros, Mumbai has the highest proportion of slum-dwelling households (41.3% of its population). Kolkata is next at nearly 30% with Chennai not far behind. Delhi has 14.6% of its households living in slums. Bangalore is best off of the five metros at less than 10%. 
    Among all million-plus cities, Vishakhapatnam has the highest proportion of slums (44.1% of households). However, Census authorities were treating with skepticism the unexplained spurt in slum populations across cities in AP.

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Liquor, tobacco & gold will cost more in state No Money, Only Promises For Mumbai

Mumbai: Cigarettes and other tobacco products, cheaper IMFL alcohol brands and strong beer are set to get more expensive following finance minister Ajit Pawar's budget for 2013-14, which was announced on Wednesday. Gold, silver, diamonds, precious metals and jewellery made from these items will also be costlier. 

    Pawar sought to do a balancing act between giving relief for rural areas in a drought year while also ensuring there weren't too many additional burdens before 2014, an election year. 
    In Mumbai, landlords and tenants will see stamp duty for more expensive accommodations going up. However, if the security deposit for the flat stays low, the stamp duty can be controlled. 
    Confident of widening the tax net, the state government envisages its tax recoveries to increase from Rs 600 crore last year to Rs 1,050 crore. Tax on cigarettes goes up by 5% and unbranded tobacco by 12.5%. Cheaper IMFL brands will see a whopping 25% excise duty hike, while strong beer will face higher excise of up to 43%. 
    The tax on gold, precious metals and associated jewellery will go up by 0.1%. The tax, said Pawar, is for a year only and the money will be channelled for drought mitigation measures. The state hopes to mop up Rs 175 crore here. Another Rs 150 crore is to be raised by increasing the purchase tax on sugarcane. "Sugarcane factories utilize 70% of irrigation and must pay for drought measures," said Pawar. 
    The cost of cosmetics and shampoos classified as medicines (herbal products) will also go up as the government has levied 12.5% tax on these items. 
    The good news is that the cost of many essentials remains unchanged. These include tea, rice, wheat, pulses and flour, turmeric, tamarind, jaggery, fenugreek, papads, currants and raisins, wet dates, Solapuri blankets and towels. Budget 'spares' middle-class 
Mumbai: The cost of heart implants will go down as VAT has been reduced from 12.5% to 5%. Flavoured and toned milk will be cheaper too, along with stamp papers purchased from government-authorized vendors. Students who have a hobby of collecting stamps, envelopes and first-day covers will now no longer have to pay tax on the philatelic goods. 
    The overall budget at Rs 1.8 lakh crore is Rs 20,000 crore more than last year's Rs 1.6 lakh crore budget. However, there were no big ticket projects. In fact, the outlay for development (Rs 46,938 crore) increased by a paltry Rs 1,938 crore over last year's budget. The economy is expected to grow at 7.1%, according to the State Economic Survey. "The aim is to ensure that the middle class is not unduly burdened with taxes even as drought mitigation measures are taken up," said Pawar. There were no significant new taxes. 
    The rural-centric budget gave Mumbai no more funds, just assurances that ongoing infrastructure projects worth Rs 5,000 crore will be commissioned during the year. There was no mention of the Local Body Tax (LBT), which replaces octroi, either. Chief minister Prithviraj Chavan said 20 municipal corporations had already moved to the LBT and were doing fine. "We have given a grant of 10% at the time of changeover which will be done for the major municipal corporations too," he said. He later reaffirmed that it would be introduced this year by the BMC and other local bodies. 
    With the state facing an unprecedented drought, the budget aimed at drought mitigation measures has set aside Rs 11,500 crore for various longterm water conservation measures. Irrigation has been allotted Rs 8,379 crore (approximately Rs 2,000 crore is expected from the Centre to complete 140 projects that are 90% done). 
Third time lucky for CCTV project? T he state government has set aside Rs 150 crore for installation of CCTV cameras on Mumbai and Pune roads. This is the third consecutive year that allocation has been set aside for the much-delayed Mumbai CCTV project. The government is yet to complete the process of appointment of a contractor. It has also set aside Rs 317 crore for modernization of the police force. TNN

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Bldg basements to house more vehicles, ease parking woes

Mumbai: In an attempt to avoid occupancy of roadside spaces by cars, the state has decided to allow developers to use 100% of basement area in an upcoming building for parking. At present, only 50% of the basement area can be used for parking. Also, buildings can have multiple levels for parking as against the existing one or two levels. 

    In order to create more parking space, the government is set to change rules under the Maharashtra Regional Town Planning (MRTP) Act and will soon invite public suggestions and objections before implementing the plan. 
    While the civic body has already changed its rules under the MRTP Act, the Mumbai Metropolitan Region Development Authority (MMRDA) will soon follow suit. 
    "With the basement area being freed of floor space index, more developers would like to build multiple parking slots in upcoming projects. The changes may also be applied in case of buildings going for redevelopment. But the chances of existing structures creating more space for parking in their basements are slim," said a senior state government official. 
    The MMRDA has sought tenders, inviting contractors to maintain 1,600 parking spaces, including 1,100 for four-wheelers and 170 for buses, in BKC. Sources said the changes under the MRTP Act would double the parking space in BKC. "Many buildings have scope for expansion," said a source. 
DRIVING CHANGE 
    The state will allow developers to use 100% of basement area in an upcoming building for parking. At present, only 50% of the basement area can be used 
    Buildings will be allowed to have multiple levels for parking as against existing one or two levels The 5% premium paid by developers on basement 
parking has been waived off

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HC asks govt to respond to PIL on property tax

Mumbai: A division bench of Chief Justice Mohit Shah and Justice Anoop Mohta of the Bombay High Court on Monday directed the civic body, joint director of town planning and valuation and the state government to file an affidavit by April 14, giving their response to a PIL challenging the new capital value-based tax system. The new system bases taxes for all buildings (old and new) according to the ready reckoner (RR) rate, the market value of the property fixed by the government. 

    In his PIL, Borivli-based social activist Rajendra Thacker has questioned the basis of computing tax according to the RR. "RR cannot be the basis of property valuation. There are many criteria that govern a property's value. Under Mumbai Stamp (determination of market value of property) Rules 1995, citizens are supposed to be given an opportunity to verify the data and give their objections before market value rates are finalised,'' said Thacker. The PIL pointed out that no such opportunity is however, given to citizens. Instead, the government finalises the statement of rates (RR) and publishes them on January 1 every year. "The preparation of the RR is therefore arbitrary and contrary to principles of natural justice,'' said Thacker. 
    Thacker had filed an application under the Right to Information Act seeking data on which the statement of rate was prepared for the year 2009 to 2012, but has not got a response. "The new property tax system was expected to rationalise property taxes in the island city and suburbs. Instead, taxes are still high in the suburbs. Flats which once paid Rs 1,000 will now have to shell out Rs 3,000 as tax. So, if RR rates are erroneous, citizens will suffer grave financial loss as they would have to pay excess property tax. This is grossly unfair,'' said Thacker, who in his PIL has demanded that the government furnish the data collected for preparing the RR. 
    The PIL is scheduled to come up for hearing in the HC on April 29. 
THE PIL 
Ready reckoner can't be the basis to compute tax 
RR is prepared in arbitrary manner, against the rules of natural justice 
    BMC clubbed 400-500 plots together to arrive at the base value, which includes luxury apartments, semi-permanent bungalows and even slums, while each structure will have different value given its type 
    New system has kept properties up to 500 sq ft out of the increased tax net 
    Property Owners' Association wants the BMC to reconsider the system, which does not offer any cap for buildings that got occupation certificates after April 2010 
    It causes recurring liability on owners and even tenants. Once the cap on the existing levy is removed, the property tax will increase by 40% 
    Tax is levied on the built-up, not on the carpet area

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State aims for 20k affordable homes in Mhada bldgs

Mumbai: The state government has decided to completely do away with charging premiums for Maharashtra Housing Area Development Authority (Mhada) redevelopment projects in lieu of extra floor space index. Instead, it will take a share of the surplus flats, which are likely to form the corpus of affordable housing in the city. 

    The size of redeveloped flats would be restricted to 300 sq ft for low-income groups, 600 sq ft for middle-income groups and 800 sq-ft for high-income groups. So far, developers offered flats of even 1,000 sq ft in Mhada buildings, but it will reportedly no longer be allowed. 
    Chief minister Prithviraj Chavan said in the legislative assembly on Monday that he had finalized the new policy for Mhada redevelopment and the notification would be issued this week. The new policy will be implanted once the notifications are issued. Chavan was replying to the motion discussing the governor's speech at the beginning of the budget session. 
    The housing authority has 102 layouts and 56 colonies in the city. It has very few vacant plots left for development, but with the change in the Development Control Regulation 33(5), which governs Mhada redevelopment, the state hopes to generate around 20,000 affordable flats in each redeveloped building. 
    Minister of state for housing Sachin Ahir said under the new policy, the government would 
accept only flats in lieu of extra FSI, granted for redevelopment. "Mhada projects get FSI of 2.5-3. The government plans to get about one-third of the additional FSI in the form of flats. This is our only hope to create affordable housing in the city," he said. 
    In 2010, the state stayed the premium policy and has since been working on the new policy.

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Income tax pinch lurks in Budget for realty deals in India

Mumbai: Forget about doling out sops to prospective flat buyers. The Central government has instead, in the Union budget for 2013-14, mooted tax proposals that could make property deals more expensive for buyers and sellers if the properties are 'undervalued' when stamp duty is paid. Furthermore, those who are gifted properties face an income tax .      Realty experts said the amendments to Section 56 of the I-T Act, as proposed by Union finance minister P Chidambaram, would be farreaching, especially in a metro like Mumbai.      If a property has been bought for Rs 80 lakh, but the ready reckoner (RR) rate is Rs 1crore, realty experts said the buyer would have to pay a 30%  income tax on Rs 20 lakh (the difference between Rs 1 crore and Rs 80 lakh). This would be in addition to the stamp duty. Furthermore, when capital gains tax is computed, the seller would have to pay the difference between Rs 1 crore and the rate he originally purchased the property at.      If a person receives a property as a gift and it is valued at Rs 1 crore when paying stamp duty, he would have to pay I-T on Rs 1 crore. 'Budget proposal would hit realty, amounts to double taxation'  Govt Trying To Crack Down On Undervaluing Of Property      The amendments would apply to all deals that involve a stamp duty of more than Rs 50,000. The tax on gifted properties would be applicable only when the gift doesn't come from close relatives.      The government has decided to treat the difference between the rate on which stamp duty is paid and the Ready Reckoner (RR) value as a "concession", say experts. They added that the government may be trying to gather into the tax net those who undervalue property to pay less stamp duty.      However, critics have urged the government to rethink the proposal. Property experts and tax consultants said the impact would hit cities like Mumbai, where RR rates are extremely high. More importantly, the government does not use a standard formula for computing property value.      For example, if a flat in a poorly maintained building is sold for Rs 8,000 per sq ft (psf), the RR rate could be Rs 10,000 psf. Though the sale in such case would be genuine, the government would consider the difference of Rs 2,000 psf as a 'concession' and levy an I-T on it. This is in addition to the stamp duty the buyer has already paid. That's not all. The seller, in turn, would have to pay a hefty capital gains (CG) tax. The 22% CG tax, incidentally, would be computed on the RR value of Rs 10,000 psf.      Pranay Vakil, chairman of Praron Consultancy Pvt Ltd, said the government does not seem to have thoroughly thought of the implications that the amendment could have on the real estate industry. "This amendment clearly forfeits the rights of a buyer and seller to get a good deal merely because their agreement value is less than the Ready Reckoner value. This could amount to double taxation. It is unjust and would only further stagnate the real estate market in the city," said Vakil.      "What is also unclear is that if at a future date the buyer decided to sell the property, what would be the rate for him to compute capital gains when selling. Would it be the price at which he purchased, or the Ready Reckoner value at the time of purchase? This would create confusion," Vakil added.      Incidentally, this is the second time in three years that the government has mooted this proposal to tax 'concessions' in immovable properties. The proposal was earlier mooted in the 2010 Finance Act, but later removed.      Echoing Vakil's view, senior advocate K K Ramani said, "The provision obviously is designed to prevent revenue leakage through the practice of under-reporting of sales in real estate transactions. But the government has erred in one aspect. If the price of a property is different from the stamp duty value, it is not always a case of underreporting. Property values are not standardized. The values depend on a number of factors that are generally not considered while determining the RR rate."      Rajesh Mehta, of Raha Realtors, claimed there were various high court judgments that have clearly said that RR rates were merely indicators and not the final values of property in any area. "The Centre, by basing tax computation on the RR rates, is confirming the irregular manner in which the state fixes property prices in a location. In addition to VAT, service tax and property tax, it would now become very difficult for individuals to shell out such huge sums as RR rates keep increasing at an average of 17% every year," said Mehta.      Experts said there is also a lack of clarity on how the amendments would apply to redeveloped buildings.

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Pay property tax by June 30 or you’ll be fined 2% of bill amount Charitable Bodies, Elderly Burdened By New Tax System

Mumbai: The municipal body's decision to extend the due date for payment of property tax bill from March 31 to June 30 has come as a temporary relief for citizens. But the fundamental issue of paying bills with retrospective effect from April 2010 and the alleged faulty capital value method of computing the tax still exist. 

    Moreover, now the Brihanmumbai Municipal Corporation (BMC) has decided to impose a penalty of 2% per month on those who do not pay the bills by June 30. 
    Citizens are still unconvinced about the new system. 
    "The extra three months are welcome, but it doesn't solve the core issue of the formula itself, where property tax is computed on the basis of the Ready Reckoner rate, which is faulty, irrational and discriminatory. Residents living on a property in the suburbs end up paying more than those living on a property in south Mumbai," complained advocate Godfrey Pimenta, who lives in Marol. 
    The new property tax system has adversely affected senior citizens, too, who live on pensions. 
    While the New Delhi Municipal Corporation provides concessions on property tax to senior citizens, the BMC does not 
    "With inflation rising every year, it will become very difficult for retired senior citizens to bear the heavy tax burden. As such, they should be granted concessions," said Pimenta. 
    Coleman Pereira, a senior citizen from Pali Village in Bandra (W), said that retired people live on their meagre savings and will face difficulty paying the hefty taxes. 
    "Our pension doesn't increase in accordance to inflation. So, if the rate of inflation has increased by 10%, my earning through pension does not rise from Rs 100 to Rs 110,"explained Pereira, who lives in a cottage in Pali gaothan. 
    "If property tax is computed with the capital value system, it almost doubles for my cottage doubles from Rs 3,572 to Rs 6,000 per year. The BMC has not even inspected my premises. My house has load-bearing walls, but is classified as an RCC construction," he said. 
    Charitable organisations and religious institutions, who are dependent on charity to help orphans, disabled and senior citizens, complained that the new property tax system will burden their resources. 
    St Catherine's Home in Andheri (W) and Holy Cross Church in Kurla have received staggering bills amounting to lakhs. "We have got a bill of Rs 7 lakh with retrospective effect from April 2010. Catholic charitable trusts and institutions never default in paying government bills. We run our churches and institutions on donations; they are not profitable trusts. We strongly protest against the new property tax bill sent by the L ward office in Kurla,"said Father Pascal from Holy Cross Church. 
TAXING TIMES FOR MUMBAI What is the new system 
    Earlier, property tax was computed based on its rateable value, that is the rent paid by tenants. Also, the rents for old buildings in south Mumbai were frozen at amounts that existed in the 1940s. The BMC could not increase this amount and hence, south Mumbai residents paid far less property tax than those in the suburbs. While a Marol resident who lives in a 300 sqft flat with a valuation of 1.14 crore paid 13,977 as property tax annually, the owner of a 10,000 sqft flat in Colaba with a valuation of 12.74 crore paid only 5,200 a year. To bring parity, the BMC devised the capital value-based system to calculate property tax. Under this new system, the tax is calculated based on the property's current market value taking into account five factors: price of the property, the area, age of the building, type of building (commercial or residential) and type of 
    construction 
    (concrete or 
    wooden) 
Why citizens are upset 
    Mumbaikars are calling the new capital value method of computing property tax unfair and discriminatory. The base capital value of a property is linked to the Ready Reckoner (RR) rate decided by the state town planning department, which stipulates prices for specific areas such as residential, office, shop or commercial and industrial. In an RR, 400-500 plots are clubbed and given a uniform rate. The price of a property is dependent on factors such as type of construction, facilities, and surroundings such as proximity to airport. But residents complain that the ground reality that affect a property's price are not taken into consideration in the RR. The issue is being contested in an Aurangabad court. Citizens are also upset about the disparity in the tax levied on flats in the western 
    suburbs and the island city. 
    Another concern is the receipt of 
    bills with retrosp-ective effect 
    from April 2010. Senior citizens, 
    charitable organisations and 
    gaothans also feel burdened 1 in every 9 bills has an error 
Mumbai: Of the 2.70 lakh property tax bills the municipal corporation has issued since February, it has received complaints about 30,000 bills. This means, one in every nine bills issued has an error. 
    "The complaints that we are receiving are about the incorrect area of a flat, nature of use or tenancy-related issues. We are rectifying them and are also undertaking spot surveys, if needed," said a civic official. 
    The municipal cody has set up helpdesks at all 24 ward offices, where complaints regarding property tax bills will be addressed till the owner is satisfied. 
    According to sources in the civic body, the BMC has relied on old data for calculating the property tax based on the capital value system. The BMC had not carried out a fresh survey of properties before making the switch for tax calculation from rateable value — it is computed on the basis of the rent a property can get — to capital value — it is based on the market value of the property. 
    Mumbaikars said that as a property may have undergone several changes, additions or alterations over the years and in the absence of the correct data of the property, the BMC cannot send the bills based on the old records. 
    The huge number of complaints show that there are definitely discrepancies in the data with the BMC and the ground reality. 
    "How can the BMC charge us tax and not have the data on what they are charging us for? The civic body took three years to implement the new system, it should have taken some more time and done its homework better before sending us bills haphazardly," said Chembur resident Nitin Patel. 
    Civic officials claimed there were plans to conduct a fresh survey of properties in the city, but they were called off after the BMC realized that it would be a time-consuming, expensive exercise.

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Bldr defaults on rent, Mhada seals bank account

Mumbai: The Maharashtra Housing and Area Development Authority (Mhada) on Wednesday sealed the bank account of a city-based developer for defaulting on payments and failure to surrender tenements allotted to it on rent. Officials said that two bank accounts of Pankti Developers, which has its registered office in Vile Parle, were sealed at Mhada's behest. 
    Ramesh Survade, joint chief officer of the Mumbai Building Repair and Reconstruction Board of Mhada, said the recovery was undertaken due to persistent default by the developer. 
    On March 3, TOI had carried an article highlighting Mhada's plans to seal bank accounts and attach properties of developers who have defaulted on rent payments for transit tenements allotted to them and have also failed to surrender these in time. 
    The matter pertains to transit tenements rented out by Mhada for three Dharavi-based slum redevelopment projects taken up by the developer. While the tenements were submitted for a maximum timeframe of three years, officials said the developer failed to surrender these within the stipulated period. 
    The developer is yet to surrender 205 tenements allotted for two projects. These were allocated in 1998 and 1999 respectively, Survade said. Further, the rent payments towards the tenements were not paid in case of all three projects leading to an accumulated rent and interest arrears of Rs 8 crore, Survade said. 
    The MBRRB served three notices (since Sept 2012) to the builder stating that dues will be recovered as "arrears of land revenue" as provided under Section 80 of Mhada Act, 1980, which enables attachment of movable and immovable properties and sealing of accounts. The builder issued a cheque of Rs 6.60 lakh, but it bounced.

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JAIRAM RAMESH Rural Development Minister Proposed Land Bill is for Masses, Not Classes

Ethical governance is essential 

for the country, says the minister to Urmi A Goswami

Is unleashing animal spirits still the main focus of the government? 
Unleashing the animal spirits is all very well, but it has to be in an ethical framework. Markets are all about morals, trust and adherence to laws. I think an obsession with animal spirits to the point of ignoring larger issues that govern the functioning of markets is not good for the country. You must unleash the animal spirits, but do so in a manner that the animals don't become man-eaters. 
It is felt that the proposed land bill will hurt the aspirational middle class
This is a bill for the 'perspirational' masses, not necessarily for the aspirational classes. While I think that the aspirational classes are important, the concerns of the 'perspirational' masses must get overriding priority. Let me hasten to add that the 'perspirational' masses have their own legitimate and worthy aspirations, which this bill addresses. I think the aspirational classes, as you put it, can certainly afford to pay more for land so that the concerns of land and livelihood losers are fully met. When it comes to land acquisition, the 'perspirational' masses have got a very bad bargain. 
Will the bill push up the cost of land? 
There is no point in running away from the fact that land acquisition costs and time spent on acquiring land will increase. I have navigated a very fine middle path, taken on board concerns of farmers, livelihood losers, industry, housing and urbanisation. This is a transition bill. Ideally, I would like to see a situation where 20 years from now all land required for industry and urbanisation is purchased directly. 
What about apprehensions that the compensation is indeterminate? 
Nothing is indeterminate in this bill, there are clear parameters. It is going to make acquisition transparent. It will circumscribe the principle of eminent domain, which has been misused by governments with devastating effects. 
Could the retrospective clause increase liability and litigation? 
It is a deeply contentious clause, we finally decided to include it but not in an open-ended manner. Agreed that there will be extra liability, but you have to recognise that PSUs have been among the worst culprits in land acquisition. Many of the problems that Coal India faces are directly attributable to the manner in which land is acquired. This is why, the exempted laws, listed in Schedule 4 of the bill, will have to comply within one year with the compensation and R&R provisions of the new law. 
How does Congress view the attempts to turn the 2014 polls into a Rahul versus Modi contest? 
The elections are at one level about Congress versus BJP; at another, UPA versus NDA; and, at the third level, Congress versus the regional parties. This 'Modi versus Rahul' trivialises a serious political conflict. It is a clash of ideologies, of competing visions, of conflicting interpretations of the past, of competing visions of how economic growth and social harmony must go together. 'Modi versus Rahul' is a good headline, but I don't think it is a reality. I have met senior BJP leaders who have said they will never serve in a Modi administration. 
Do you believe it helps to have a PM candidate? 
Ours is not a presidential election. Ours is a system where political parties, and not individuals, compete with each other. Our elections are not a beauty contest of individuals. 
Rahul Gandhi spoke about dismantling the high command. What will the new system be? 
I think Rahul Gandhi is trying to bring about fundamental changes in the party. He is committed to democratisation of the party, to empowering office bearers down to the district and block level and bringing in new people. Every party needs a high command and a central nervous system. Congress has always had it even though Nehru being Nehru, during his time he did not always have things his way but he was accommodative. As Rahul has himself said, the high command reached its apogee during Indira Gandhi's time for a variety of reasons. What he is talking about is a transition away from a stifling and all-powerful high command, which is stifling not so much because of the person at the very top but also because of the courtiers around that person who do not want a regional leadership to emerge. The balance between central authority and decentralised responsibility is what he will have to work out.

On RAHUL Vs MODI 
"This 'Modi versus Rahul' trivialises a serious political conflict. It's is a good headline, but I don't think it is a reality"

On MASSES 
"While I think aspirational classes are important, the concerns of the 'perspirational' masses must get overriding priority"

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35k hsg societies to protest against new property tax

Mumbai: Citizens' groups, 40 NGOs and 35,000 housing societies have planned a mass agitation against the BMC's "unjust" computation of capital value-based property tax. They have also decided to go on a one-day hunger strike at Azad Maidan before the assembly session ends in April. 

    Addressing the media on Monday, representatives of NGOs like Watchdog Foundation, SOUL, the Bombay Catholic Sabha and Federation of Housing Societies said they want the authorities (the BMC and the state) to revert to the old method of computing property tax as the citizens are upset with the new system. 
    SOUL convener Dolphy D'souza said there was disparity in the property tax levied on flats in western suburbs and the island city. D'souza furnished documents that showed that while a Marol resident who lived in a 300 sq-ft flat with a valuation of Rs 1.14 crore paid Rs 13,977 as property tax annually, the owner of a 10,000 sq ft-flat in Colaba with a valuation of Rs 12.74 crore paid only Rs 5,200. The NGOs made a presentation before the citizens highlighting the "malfunctioning and mismanagement in the BMC". 
    Advocate Godfrey Pimenta said the BMC signed a tripartite agreement in 2006 with the state government and the Centre for receipt of funds under Jawaharlal Ne hru National Urban Renewal Mission. "Under the agreement, the BMC was to map all protected slums and bring them under the property tax net. But till date, slums have not been brought under the purview of property tax."

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3 years on, Mantralaya revamp plan revived 30K Sq-Ft Of Annexe Building To Be Razed To Construct 24-Storey Administrative Tower

Mumbai: Nearly three years after a project for Mantralaya redevelopment was nixed, the state government has revived the plan. It wants to raze a 30,000 sq-ft portion on the west side of the annexe building to construct a 24-storey administrative tower.      The proposal will be placed before chief minister Prithviraj Chavan and deputy CM Ajit Pawar; chief secretary Jayant Kumar Banthia has conveyed that he is "positive" about the plan. Conceptualized by architect Raja Aederi, the plans envisages the demolition of 5,000 sq-ft portion from one end of the annexe building—the end near the MLA hostel—to make way for the highrise.      The state government is apparently keen to exploit the full development potential of the Mantralaya building. A total construction of 5.5 lakh sq-ft built-up area can be undertaken on Mantralaya premises, which is entitled to a floor space index of 5.33. An FSI of 2.4 only has been used up so far.      Incidentally, Aederi also played a role in the scrapping of the redevelopment plan. After a blaze destroyed the upper floors of the Mantralaya's main building in June last year, Aederi was appointed as the architect for the restoration and revamp (R&R) of the structure. The R&R project is still on and is expected to be completed in July. The government recently decided to extend the scope of the R&R work to include the construction of executive dining facilities and eight committee rooms on the seventh floor of the main building. The entire project is likely to cost the government more than Rs 175 crore, officials said.      The plan was to take up the redevelopment proposal thereafter, an official added. Aederi and senior PWD officials had also prepared an alternative plan for a 31-storey administrative tower by tapping the open space available near the entrance gate. But with a considerable portion of the space falling under CRZ, and being used as a garden at present, officials said Banthia was not amenable to this plan.      Sharad Pawar had also said the state must consider "redevelopment of Mantralaya".  Old Plan I n April 2010, the state scrapped the makeover plan of the entire Mantralaya precinct, which was estimated to cost Rs 1,376 crore. Awarded to India-Bulls, the project was to include the redevelopment of other government buildings, such as the new administrative building, ministers' bungalows and government barracks, located in the vicinity of the Mantralaya. SET FOR A MAKEOVER: The project is entitled to an FSI of 5.33

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City sees 600 blazes every month, has only 133 beds for burn victims

Mumbai: Three major fire incidents in a month that claimed seven lives and left more than 20 injured, have turned the spotlight on the dismal state of burns' care facilities in Mumbai. For a city that witnesses more than 600 fire incidents every month, both major and minor, there are just about 133 beds for the victims. 

    If not for the single-largest 50-bed private facility in Airoli, the number of beds would dip further to 85. Over the years, the bed count for burns' patients has remained critical with the private sector shying away from offering or even setting up any such facility. Experts said there is an urgent need for an equal number of beds to be added to the pool so as to boost the survival of patients who have sustained more than 50% burns. 
    Following the very recent LPG tanker explosion at Mankhurd, 15 patients with varying degrees of burns were rushed to the civic-run Sion Hospital. Only four patients with 100% burns could be accommodated at the isolated burns' unit ICU for want of vacant beds. Six other patients were given first-aid and covered in sterile sheets but admitted in a makeshift ward for mass casualty. They were later shifted to the dedicated burns ward after other patients gotdischarged. Dr Meena Kumar, the hospital's head of surgery, said there was a need for more beds as public hospitals are always packed to capacity. 
    The 15-bed burns' unit at Sion Hospital and 25-bed unit at Kasturba Hospital are almost always fully occupied, with the result that the patient load often spills over to the general wards. This could prove detrimental for a burns' patient, who needs a sterile environment more than anything else. 
    Dr Sunil Keswani, secretary of National Burns Centre in Airoli and a cosmetic surgeon, called the scarcity of burns' facilities a complex social problem. "Most burns' victims are from lower socio-economic strata, and therefore better burns' management has remained low priority for the state." Keswani further said that new policies are required to deal with the cost factor in burns treatment that can go up to Rs 7 lakh for over 60% burns. 
    Dr Madhuri Gore, who started the country's first skin back at Sion Hospital, said that a more structured approach must be adopted. 
    "There is a need to divide patients according to severity of burns and that way the patient load can be taken away from the tertiary care hospitals." Keswani cautioned that in the event of a mass burns incident, the city may drastically fall short of beds. 
BIG BLAZES IN RECENT PAST 
March 4, 2013 
Seven people were killed and nine injured after an LPG tanker crashed into safety pillars along the Sion-Panvel highway 
November 26, 2011 A fire broke out at Sara Sahara Market in Crawford Market, Yara Shopping Complex and spread to Manish Market, reducing over 500 shops to ashes 
June 21, 2012 Fire engulfed Mantralaya. Sensitive documents were destroyed and two died 
March 4, 2011 A major fire destroyed Garib Nagar, which adjoins Behrampada slum outside Bandra (East) railway station. Eleven people were injured as the inferno claimed 2,000 shanties

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