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Old buildings,new sops

The state government has issued the final notification on the cluster policy for redevelopment of buildings older than 40 years in the city.

Written by Shalini Nair | Mumbai |
March 5, 2009 11:17:18 pm

The state government has issued the final notification on the cluster policy for redevelopment of buildings older than 40 years in the city. From increased incentive area for developers to mandatory consent of landlords,the new policy issued on Monday has a number of modifications from the earlier draft policy.

Developers’ incentive share has been increased by five per cent. Anyone who takes up a cluster redevelopment project across more than 4,000 sq m will be granted a floor space index of 4,or the FSI required for rehabilitation of the existing occupants plus incentive FSI,whichever is more. With the government increasing the sale component in the project,developers will now be able to commercially exploit an area equal to 55-80 per cent of the rehabilitation area.

The government has no longer kept it mandatory for developers to earmark the specified number of flats for public housing within the cluster redevelopment area. In a deviation from the draft,they are now free to hand over public housing flats to MHADA at any location outside the cluster as long as it is in the same municipal ward.

Even the land leased out by public authorities will be made available for the scheme on payment of 25 per cent of the ready reckoner rate. Also,a total of 25 per cent of the structures in a cluster can be buildings aged less than 40,or slums.

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“We have made it mandatory for developers to pay Rs 5,000 per sq m of FSI used over and above the base of 1.33. This money will be used to augment off-site infrastructure like sewerage and roads,” said TC Benjamin,principal secretary of urban development department.

He said another modification is the mandatory consent of at least 70 per cent of landowners before the high-power committee headed by the municipal commissioner gives the letter of intent. “Once the letter of intent is issued,the consent of the remaining 30 per cent of landlords and at least 70 per cent tenants has to be procured within a year. The committee will decide the time frame within which each component of the project has to be completed.”

The government has clarified that there will be no more pilot projects for cluster redevelopment. There were 12 proposals from various developers under the pilot project the government had announced earlier.

The BMC,meanwhile,has given an in-principle approval to three cluster redevelopment projects. These include a 19,434-sq m project by Neelkamal Realtors Towers Private Ltd at Rangwalla Chawl in Byculla,an 18,039-sq m project by Suresh Estate Private Limited at Turf Estate in Mahalaxmi and a 26,321-sq m project by Nish Developers at Parel. These proposals will now be reconsidered as per the final cluster redevelopment policy.

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