Wednesday, Sep 24, 2014

MHADA to screen builders for redevelopment works

The authority has now decided to establish a foolproof system to ensure contracts go to capable and trustworthy builders. The authority has now decided to establish a foolproof system to ensure contracts go to capable and trustworthy builders.
Written by Manasi Phadke | Mumbai | Posted: February 24, 2014 3:21 am

The Maharashtra Housing and Area Development Authority (MHADA) will register builders for redevelopment projects based on their track record, financial strength and project experience judged in various categories before assigning redevelopment projects.

The decision has been made with several redevelopment projects of MHADA colonies being stalled for years due to developers deserting them midway or causing inordinate delays. The authority has now decided to establish a foolproof system to ensure that these contracts go to able and trustworthy builders.

“There are many cases where residents are suffering because the developer they chose were unable to complete projects due to reasons such as capital crunch or lack of expertise. Through this exercise, residents will have a ready list of developers who have been screened for their capability,” said R B Mitkar, who heads MHADA’s redevelopment cell. Every time there is a redevelopment proposal, MHADA will call a short tender for the work and the lowest bidder will be awarded the contract on a turnkey basis.

“Also, we will need a ready list of eligible developers as we now expect more old housing societies of MHADA to come to us with proposals,” Mitkar said, adding the authority has 56 layouts in the city, of which barely 15 per cent are under redevelopment.

Until now, residents of cooperative housing societies of MHADA were selecting developers for redevelopment of their buildings independently with a no-objection certificate from the housing authority.

However, now under the revised development control rules (DCR 33/5), the state government has incentivised residents to approach the housing authority with redevelopment proposals. If redevelopment is undertaken through MHADA, residents will get an additional 15 per cent carpet area.

The housing authority will maintain two lists of registered developers. The first list will be those eligible for construction contracts with a plot area of less than 20,000 sq m. These will be developers with an experience of at least 10 years in redevelopment work, who have completed contracts amounting to 50,000 sq m and with a minimum turnover of Rs 50 crore in the past five years.

The second list will be those eligible for construction contracts bigger than 20,000 sq m that require permissions from the environment department, high-rise committee and so on. Along with a minimum experience of 10 years and having completed redevelopment works of 1 lakh sq m, developers in this list will have to have sufficient experience of securing approvals from the environment department, coastal regulation zone clearance, high-rise committee and so on.

Developers can be empanelled for five years with a provision to grant a two-year extension depending on the performance.

manasi.phadke@expressindia.com

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