Maharashtra Govt plans to push for cluster development

Expects the cluster development projects will clock turn over of well over Rs 20,000 crore

The government of Maharashtra plans to push  'cluster development' of slums and chawl-like tenements, here and elsewhere in the state. This envisages redevelopment (by private builders) of groups of structures within a specified area. The government's proposed housing policy has said such development will be incentivised.

One proposal is for the consent clause to operate with 70 per cent approval required from the cluster as a whole, not society by society. A Floor Space Index (FSI, the ratio of permissible built-up area on that of the plot of land in question) of four and above is being proposed. Compulsory acquisition up to 30 per cent of the approved area of a cluster will be provided, for infrastructure.

Other fast-track approval processes are in mind. Part of these are time-bound approvals, with prescribed responsibility at each level in the Development Control Regulations. The cut-off date of eligibility will be reviewed periodically and refixed.

Anuj Puri, country head at realty consultancy JLL India, said the FSI increase should encourage private developers to participate more. These projects are coming up in locations which are densely populated and defined by myriad commercial activities. ''A developer needs to prepare a master plan for the area, making adequate provisions for supportive infrastructure. Further, the developer needs to provide free-of-cost tenements to all original and genuine occupiers. The developer is entitled to utilise the unused FSI as a free-sale component, which he can develop and sell on the open market,'' he explained. A Tata Housing spokesman said proper implementation of such a policy can lead to population de-congestion, opening of locked spaces, modernised infrastructure and creation of a new city skyline. Mumbai is ripe for large-scale and comprehensive urban renewal of this nature.

Arvind Jain, managing director, Pride Group, said the benefits of redevelopment in a city like Mumbai are numerous. Urban sprawl is tamed to some extent, economic competitiveness of the prime precincts increases and the incidence of building collapse reduces.

Sunil Mantri, chairman, Mantri Realty, says the proposals give tenant-occupiers too much leeway. He wants the requirement of tenant consent to be no more than 25 per cent, from the proposed 70 per cent. "The government needs to declare old and dilapidated buildings non-habitable, thereby making it mandatory to go for redevelopment," he said.

Puri says otherwise. ''Getting the majority of stakeholders on board is a major task. Also, it is a long and capital-intensive process. If carried out in a non-consultative manner, redevelopment can result in an excess of high rises that compromise existing infrastructure, reduce the possibility of new infrastructure and increase the crime rate in a location. To be genuinely democratic, the process of redevelopment must be consultative at all levels. Community participation, sustainability and trust are important watchwords,'' he opined.