Construction to pick up in suburban Mumbai, coastal areas

Government delinks revised Transferable Development Rights policy from ongoing redevelopment projects on narrow roads

Written by Sandeep Ashar | Mumbai | Published: July 11, 2017 5:26:40 am
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Construction in suburban Mumbai could pick up pace with the Maharashtra government delinking its revised policy for Transferable Development Rights (TDR) with ongoing redevelopment projects on narrow roads. The chief minister-led Urban Develo- pment department has written to the Mumbai municipality, clarifying that the revised policy should not be applied to ongoing redevelopment projects fronting roads less than 30 feet-wide. The concession has been applied for all such construction projects where the municipality has issued the initial building permission or the commencement certificate. But the rider has been imposed that this concession would be applicable to the extent of the construction rights approved.

The TDR, which is issued in the form of development rights certificate, is a vital tool for builders, since it allow them additional construction rights when they construct or redevelop buildings. It can also be sold in the market. A TDR is generated when a land owner surrenders lands for reserved public amenities or for road widening/new roads in built-up form or rehouses slum dwellers or the project affected persons free of cost. Besides this, the land owner of a property tagged as heritage grade-I or heritage grade-II can avail TDR for the plot’s development potential that remains unutilised on account of restrictions imposed on the construction.

While revising the TDR policy for Mumbai on November 16, 2016, the chief minister-led department had linked it to the width of the fronting road for the first time. While incentivising utilisation of TDR on wider roads, the new policy had prohibited it for construction projects fronting roads less than 30 feet wide.

On March 16, 2017, Mumbai municipal commissioner Ajoy Mehta had approached the government, contending that the move would hit over 250 ongoing redevelopment projects on such narrow roads. “We (the civic body) had stopped issuance of further development permissions to such construction projects pending the government’s response to the query. The developers were advised not to utilise the TDR till such time,” said a senior civic official.

The government’s clarification, which was issued to Mehta on July 7, has now cleared decks for the full utilisation of the development potential for such construction projects. The state has also clarified that slum redevelopment projects and reconstruction of dilapidated, cessed, and unsafe buildings in areas governed under the coastal regulation zone-II can be granted additional construction rights under the revised TDR policy. The civic body had stopped permitting TDR for such projects with the government’s 2016 notification regarding the revised policy containing a clause that it won’t be applicable in the case of CRZ areas. Another 150 projects had been stuck due to this, said civic officials.

Meanwhile, the department has issued orders incorporating the provision of compensating land owners for encumbered plots that are required for vital public projects in the new TDR policy.  According to the provisions, a TDR to the extent of 25% of the plot area would be provided to such land owners for fully encumbered plot. Whereas for plots that are partially encumbered, a TDR to the extent of 100% for the non-encumbered portion and 25% for the encroached area would be applicable. The government has said that such TDR would also be admissible for properties owned by the Union government, the state government and their
statutory agencies.

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