Over 200 developers, including major realty players, have evinced interest in the Maharashtra Housing and Area Development Authority’s (MHADA) plan to create a panel of builders for reconstructing its colonies in Mumbai.
Some of the notable names are Tata Housing, Godrej Properties, DB Realty, Kalpataru Group, Lodha Developers, SD Corporation (an affiliate of Shapoorji Pallonji), Wadhwa Developers, Omkar Realtors, Larsen and Toubro, Unity Infra Project, BG Shirke Group and Housing Development & Infrastructure Ltd (HDIL). The list also includes Pune-based Paranjpe Schemes and Kolte Patil Developers. The housing board had to extend its date for receiving applications from developers owing to the flurry of responses. Initially just over 50 builders had applied including Keystone Realtors (Rustomjee Builders), Mayfair Housing and Kohinoor Planet Constructions.
The empanelled developers will primarily act as contractors who will bid for reconstruction of MHADA’s 104 colonies as and when the societies approach the housing board. “MHADA will pay the lowest bidders for the cost of construction,” said Niranjankumar Sudhanshu, chief officer of MHADA’s Mumbai board.
As per the recent MHADA policy that grants an in FSI of 3 for redevelopment of its colonies covering 1,500 hectares, tenants opting for redevelopment at MHADA’s expense will be eligible for houses that are 50-95 per cent larger than their present ones. Residents opting to appoint a private developer on their own will be eligible for only 35-80 per cent more area. In the first case, an estimated one lakh additional houses, generated through the incentive FSI available after rehabilitating the existing tenants, will be used for public housing by MHADA. If redevelopment is done through private developers directly, as in the latter case, then the incentive share can be sold by the builders at market rates after sharing some portion with MHADA. This is also the reason why several developers are lining up to join MHADA’s panel in the hope that it will give them the added advantage of landing a few projects for redeveloping MHADA colonies on their own.
“Even for those societies that want to opt for private redevelopment, the calibre of builders appointed by them will have to match the criteria set by MHADA for builders on our panel. In such cases tenants can directly go for one of the empanelled developers,” said R B Mitkar, who heads the housing board’s redevelopment cell.
A few of the developers are already involved in private reconstruction of MHADA colonies under its earlier policy. These include Rustomjee, Kalpataru, SD Corporation and Godrej Properties.
“MHADA has finally realised the potential of land on which its colonies stand. Earlier, in the private redevelopment policy, builders had the choice of either sharing the built-up area with MHADA or paying a premium instead. However, MHADA soon discovered the they were only getting money through the premium option and no affordable housing which is why they modified the policy to encourage tenants to share built-up area,” said an official from Wadhwa Developers.