Businesses and trades affected by civic projects will get monetary compensation according to the ready reckoner rates of the area, starting this year.
The Brihanmumbai Municipal Corporation has taken this decision due to a lack of space for relocation.
The proposal got a final nod from the 227-strong general body with a provision of Rs 50 crore under the development plan department in the 2019-20 civic Budget.
Commercial PAPs (project affected persons) are those who have lost their business establishments/units due to development or infrastructure projects.
According to the policy, monetary compensation can be availed by commercial PAPs of projects before 1962 and shops affected due to road widening or footpath construction.
Commercial structures affected by such projects are entitled to alternate commercial premises in the built-up amenities of municipal markets, received under accommodation reservation. However, the BMC has been struggling to provide alternate space due to which land acquisition for various projects, such as cycling track along Tansa pipeline, Goregaon-Mulund Link Road, encroachment-free footpaths, are getting delayed.
While speaking to The Indian Express, municipal commissioner Ajoy Mehta had earlier said, “Where do I shift or provide alternate commercial spaces if the BMC doesn’t have them? So, monetary compensation policy has been decided upon.”
A civic official from the market department said, “A circular about the monetary compensation for commercial PAPs will soon be issued.”
The official added that other than a lack of space, in some cases, people refused to accept shops in other markets either due to the location or the fear of losing clientele. This made land acquisition a time-consuming process.
According to data from the civic body, there are 1,574 eligible commercial PAPs. Of these, 300 are affected by the Goregaon-Mulund Link Road project and 1,094 will be removed from within 10 m of the Tansa pipeline.