The Brihanmumbai Municipal Corporation’s (BMC) draft development plan (DP) 2034 will stall redevelopment of more than 16,000 dilapidated chawls in the island city, claimed builders. At a press conference held by the Property Redevelopers Association (PRA) on Thursday, builders claimed that the new rules have made projects economically unviable for them to even invest in redevelopment projects.
Pujit Aggarwal, PRA spokesperson, said, “The draft plan makes it economically unviable for builders to invest in redevelopment projects. Incentive floor space index (FSI) as a component has been done away with. The draft plan also suggests exhorbitant premiums, which will automatically increase the cost of the project affecting the tenants.” FSI is the permissible built-up area to the plot area.
The draft plan was released by BMC in February this year and has now been put up on its website, inviting suggestions and objections from citizens. The builders have now asked for 25 per cent incentive FSI in case of amalgamated plots and to rid re-development schemes from additional premiums that they have to pay for.
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“The DP, if implemented, will make it impossible for people to buy homes in the city. A one BHK flat even in suburban Mulund may cost up to Rs 2.2 crore. It is only paving way for the corporation to create surplus funds through charging heavily on premium which ultimately are not being put to good use,” said Milind Changani, architect and planner.
Criticising the builders’ ‘myopic view’ on the city’s development for the next 20 years, Pankaj Kapoor, executive director, Urban Development Research Institute (UDRI), said, “Financial viability is just one of the factors attached to redevelopment. There are many other factors that are not even considered because developers are only interested in an increased profit margins. ”