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Mumbai: To give a go-ahead to cluster redevelopment in the city, the state cabinet on Tuesday approved red-auction of 50% at a premium.
Deputy CM Devendra Fadnavis, which also has a housing portfolio, said the decision to reduce premiums is applicable only for one year. “This is to ensure that people come forward to get projects approved quickly. If it is open-ended, it takes a long time,” he said. “This has been done to ensure that Mumbaikars get an affordable home and do not have to shell out for a home. With the reduction in premium and excess area, Mumbaikars will be able to get homes practically free of cost in the city.”
Dominique Rommel, president of CREDAI-MCHI, a housing industry representative body, said the decision discourages fragmented development of standalone buildings lacking proper infrastructure while encouraging the adoption of cluster redevelopment. “Cluster redevelopment means wider roads, better water supply, drainage system… This ensures overall infrastructure upliftment of an area,” he said.
Launched in 2009 as part of an urban redevelopment plan for South Mumbai and now in all of Mumbai, Navi Mumbai and Thane, Failed to start cluster redevelopment. There are only a few such projects in the city, the most prominent being the 16-acre project okra market Cluster Redevelopment Project.
Sandip Isor, a consultant to the real estate industry, said the premium is high for all construction projects. He added, “Many developers are reluctant to take up cluster redevelopment as they are financially non-viable. This decision will help developers to come forward as it will provide better feasibility.” “BMC should also ensure speedy approvals and most importantly, the government should send a message to the people who are most constituents of this project to build their trust so that they give their consent.”
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