House that?

All critiques of Mumbai8217;s housing policy must be tempered by the fact that the city at last has one. More, this policy could be the basic framework for major cities in India. Liberalisation seems the key theme 8212; and it has to be 8212; for a city crying out for more living space. Increasing the physical area that will come under the urban planning strategies of Mumbai was overdue. The Mumbai Metropolitan Area can do the same for Mumbai what the National Capital Region has for Delhi. Assorted incentives like increasing the floor space index higher FSI allows more living area to be built for a given plot size, streamlining planning and permission procedures, better financing options, more connectivity are all well-thought-out. Some of these are at the stage of a promise. On infrastructure and private-public partnership especially the jury has to be out and be sceptical. Mumbai8217;s record on such matters has not been inspiring so far.

Amending the rent law is a promise, too. And here Delhi8217;s record is relevant. The rent law has been changed 8212; that is, Parliament, which legislates on many of the Capital8217;s urban issues, has cleared amendments 8212; but the new rules have not been notified. Vested interests have managed to essentially make a mockery of due process. There will be no shortage of this in Mumbai either. So the state government better be serious if it wants rents to act as a proper market signal and therefore free up supply.

The same argument applies to the repeal of the Urban Land Ceiling Act. To promise this is disingenuous. Maharashtra is one of the few major states that still have this law. The state government has been evading the issue, even after Central urban funds were made conditional on repealing the law. Ceiling rules have completely distorted the land market 8212; they prevent free commercial transactions in landholdings beyond a certain size and therefore discourage development. Striking this law down should have been the first step of a Mumbai housing policy.