State clears the decks for 5,000 Mhada colonies’ redevelopment

 

Mumbai: The state government has finally revised development norms and cleared the decks for the redevelopment of 5,000-odd societies in Mhada colonies.
   Chief minister Prithviraj Chavan-led urban development department has issued a notification in this regard.
   Raising stakes for redevelopment, the new norms offer bigger areas for tenants while linking the developers' incentives and Mhada's share in the redevelopment to the plot's market value.
   The floor space index (FSI) for redevelopment of such societies has been raised from 2.5 to 3, and to encourage societies to come together for planned development, the government has linked incentives for tenants to the size of the plot. While tenants in an individual society will get up to 35% additional area on redevelopment, the area incentive offered will increase by another 15%-45% if they participate in an integrated redevelopment scheme involving a bigger plot-size.
   The state has offered 15% more area to tenants, if they participate in a scheme on a plot area ranging from 4,000 sqm to two hectares. This would go up to 25% for development on two-five hectares, 35% on five to 10 hectares, and 45% on 10 hectares, and above.
   Of the 104 Mhada colonies in Mumbai, 56 are on larger plots. A senior state official said the idea was to encourage cluster redevelopment in such plots for better infrastructure and planning. An additional 10% area will be offered to tenants if they opt for a development or a joint venture agreement with Mhada.
   But there is a catch. To rein in fraudulent practices used by builders, Chavan has imposed a cap of 861 sq ft as the maximum rehabilitation area that can be offered to tenants, excluding the balcony area.
   The developer's incentive and Mhada's share in the surplus built-up area has been linked to market rates to make projects in lesser development pockets more viable. Accordingly, the incentive FSI offered to developers will range from 40%- 70% taking into account the ready reckoner (RR) and construction rates. The incentive component will be lower in the prime area.
   The society's share in the remaining surplus area after the rehabilitation and incentive components will range from 30%-45% depending on the RR and construction rates, while Mhada will retain the remaining built-up area.
   The state said about 60% of the built-up area in such projects will be reserved for houses for the middle and low income groups.

THE NEW REVAMP PLAN


FSI hiked from 2.5 to 3 60% built-up area for affordable houses for low and middle income groups Existing tenants to get a minimum of 405 sqft and a maximum of 900 sqft, inclusive of fungible FSI components Bigger area for tenants if they club development plans with other societies
Tenants opting for Mhada as developer to get more area
Incentive FSI for builders and Mhada's share in the redevelopment linked to Ready Reckoner (RR) and construction rates
No premium on fungible FSI for rehabilitation component
Infrastructure charge at 7% of RR to be payable on extra FSI, excluding fungible component