New cluster plan: It’s advantage suburbs

Senior state officials said the policy would,however,come as a major boost for suburban redevelopment projects,where the cluster concept will be newly introduced. The policy has been placed before the Chief Minister for approval.

The cluster concept involves integrated redevelopment of buildings spread over plots of one acre (4,000 sq m) or more with a floor space index (FSI) — ratio of built-up area to total plot area — of 4. While the existing policy is only applicable for cessed structures in the island city,the new policy will make it applicable to all legal buildings constructed prior to 1983 across Mumbai.

For buildings declared as dangerous and existing in the cluster,even the 1983 cut-off will not be applicable.

While unauthorised buildings will also be eligible for redevelopment benefits,it comes with a rider that occupants of illegal homes will pay the construction cost. A senior state official said the idea behind the rider was to encourage conformity with laws.

Although the new policy retains the 4 FSI norm,the government has revised the sharing formula of the surplus built-up area — the constructed area remaining after rehabilitation of tenants and developers’ incentive against rehabilitation component — between the developer and the MHADA linking it to ready reckoner (RR) rates. In prime pockets in the island city where RR rates are high,the developer’s share will come down impacting his overall incentive.

Meanwhile,application of the concept in suburbs will allow higher FSI provided by the BMC for the redevelopment.

Currently,this FSI is capped at 1.33,forcing developers to purchase Transfer of Development Rights (TDR) for additional construction.

The TDR is a certificate issued by the civic body against surrender of a property reserved for public purpose activities like roads,schools and gardens. The rights are sold to the developer redeveloping suburban properties where it can be used.

A sudden spiralling of TDR rates in the last few months has jeopardised several redevelopment projects. While TDR cannot be used in cluster projects,the government is hoping that the new policy will encourage developers,plot owners and tenants to take the route,which in turn will rein in TDR rates.

Tenants opting for cluster redevelopment will now get a minimum area of 323 sq ft. Further,their eligibility will increase based on the size of the cluster. Above 1,076 sq ft,tenants will,however,have to pay construction cost for additional area.

The government has relaxed the condition requiring consent of all plot owners. The scheme will become applicable if 70 per cent owners give their consent to it. The government will acquire the area of the remaining owners under government norms. Cluster project won’t need a government approval. An approval from the existing municipal commissioner-headed high-powered committee will now be sufficient.

sandeep.ashar@expressindia.com