Private builders dubious for redevelopment of abandoned structures

The Maharashtra Housing Area Development Authority (MHADA) and the Brihanmumbai Municipal Corporation (BMC) own 454 buildings in the city that are currently old, dilapidated and in a very dangerous condition. For the redevelopment of these buildings, the state urban development agency has created a new clause 33(24) in the Development Control and Promotion Regulations, 2034. These buildings were originally cess-ed and were later developed as part of the PM's Grant Project. They now require an urgent refurbishment.

In an interview captured by ET Realty, Shiv Sena (UBT) MLA Ajay Choudhary of the Shivadi assembly constituency, is said to have began drawing awareness towards the issue in the state legislature as early as 2016. He has been asking authorities to look into the redevelopment of these buildings that are dispersed throughout south Mumbai from Colaba to Sion and Mahim. He claims there are a total of 388 MHADA-owned structures and 65 BMC-owned ones in dire conditions. Due to poor state of the structures, they occasionally experience slab collapses, peeling plaster and monsoon leaks.

Under the Development Control and Promotion Regulations, 2034 a new clause 33(24) has been introduced which permits the reconstruction of dilapidated structures by private companies. However, since these structures are present within sites are controlled by the BMC and MHADA a standard FSI of 1.33 will apply, thereby making it commercially unviable for private contractors to consider.

Sections like 33(7) for the rehabilitation of old and damaged structures offer incentive FSI of 75%-80%, 33(9) for the rehabilitation of clusters offers 90%-110% and 33(10) for the rehabilitation of slums is similar. The incentive FSI in case of 33(24) is 45% for the redevelopment of a single plot and increases to 75% for the redevelopment of six plots collectively. Several architects have written to the state government requesting an increase in the FSI incentive to attract private participation.

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Private builders dubious for redevelopment of abandoned structures

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