Ahead of the Brihanmumbai Municipal Corporation (BMC) elections, the state government has taken yet another decision concerning the real estate sector. Its latest move is the decision to offer a 50 percent discount in the premium as well as development surcharge, for cluster redevelopment projects in Mumbai.
Proposal to provide 50% concession
On Tuesday, the urban development department’s proposal to provide the 50 percent concession in premium as well as development surcharge was given the go ahead by the state cabinet chaired by Chief Minister Eknath Shinde, who is also head of the department. The decision has been taken on the lines of the earlier directive dated August 20, 2019, wherein similar concessions were extended to the real estate sector for development surcharge as well as premiums for fungible carpet area in redevelopment projects.
“In accordance with this decision, the BMC has been informed to decide on giving a 50 percent discount in the premium received for free space, stairs and transportation,” mentioned a cabinet briefing note. In April 2022, the state government had made it mandatory for all MHADA layouts to get rebuilt, under the cluster redevelopment policy.
The decision was hailed by the realty sector. “We greatly appreciate the government’s decision on cluster development.”
“This important decision holds immense potential to enhance the quality of life for residents of existing tenements. It not only prioritises safety but also ensures the provision of adequate parking facilities, which are crucial aspects of urban planning. Moreover, the move discourages fragmented development of stand-alone buildings lacking proper infrastructure while encouraging the adoption of cluster development, which offers numerous advantages,” said Dominic Romell, President, CREDAI-MCHI.
MH govt's resolution for Slum dwellers
In another move, last week, the Maharashtra government’s housing department had issued a resolution to provide tenements to slum dwellers residing in them prior to January 1, 2011, by charging them Rs 2.5 lakh. This decision will involve slums dating from January 1, 2000 to January 1, 2011. The government had to levy a charge as they did not fit into the “eligible slum dwellers” category.
