Mumbai: Government concession on premium to expedite suburbs redevelopment projects

Mumbai: To expedite the redevelopment projects and attract developers in suburban Mumbai, the state government has come up with a policy to grant concessions on premium charges to make the housing projects cost-efficient. It had also called for suggestions and objections, prior to implementation of the policy, wherein the Brihanmumbai Municipal Corporation (BMC) raised an objection fearing loss of revenue. On the contrary, Parag Alwani, the legislator of the Vile Parle constituency in Suburban Mumbai, has supported the policy.

He also filed his suggestion to the town planning authority stating that setting aside the revenue loss, the policy would be a boon for tenants of the old dilapidated structures.

“If a builder gets concessions on premium charges, they will show in the redevelopment projects. For instance, while utilising the floor space index, most of the time, builders apply for condonation from the BMC. If the builder is unable to provide the requisite open space as per the building plan, he has to pay a premium. Therefore, if the premium charges are relaxed, it will benefit the builders,” Alwani said.

Interestingly, such premium relaxation is available for projects in South Mumbai, since the Maharashtra Housing and Area Development Authority (MHADA) old buildings pay the cess. Also, the redevelopment of these buildings is carried out under the Development Control Regulation (DCR) Act 33 (7). But, in the suburban Mumbai, the old buildings do not pay cess and therefore, their redevelopment is undertaken under the DCR 33(7)(A), which has no such provisions. The state has proposed the amendment to make it viable.

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