New Policy to Boost Cluster Redevelopment In Mumbai
Cluster redevelopment, also referred to as urban renewal scheme is expected to get a boost due to the upcoming policy, as it will be offering more benefits to both developers and residents in Mumbai. The new policy will be replacing the existing policy, making cluster redevelopment more attractive than standalone redevelopment. The new policy is planned as the 2009 urban renewal scheme failed to deliver as per expectations.
Cluster redevelopment
The cluster redevelopment under the Development Control Rules (DCR) section 33 (9) applies to old and dilapidated buildings in the Island city of Mumbai. According to these rules, the minimum area required for cluster redevelopment is 1 acre (4,046 sq.mt). Cluster redevelopment can be implemented for buildings belonging to the A, B and C categories under MHADA’s act of 1976 as well as buildings built before 1970. The buildings must belong to MHADA, municipal corporation or any other government buildings.
New provisions for cluster redevelopment
Under the new proposed policy, there are many benefits. Some of them are as below:
1) DCR 33 (9) is expected to be applicable not only to South Mumbai, but across Mumbai. This means that buildings built by MHADA anywhere in Mumbai can be redeveloped using cluster redevelopment.
2) While the minimum area required for this type of redevelopment will still be 1 acre, the larger the area undergoing redevelopment, the bigger will be the flats belonging to individual owners. This will come as good news to flat owners. The minimum carpet area of a flat will be 300 sq.ft.
3) Apart from the basic size, the government may define incentives to mega clusters so that litigations and disputes may be avoided.
4) The focus of the new policy will be land pooling. BMC will mark various 1-acre areas that can form a cluster. Several such plots will be then brought together for a mega-cluster redevelopment. The government is also planning incentives to encourage the societies to come together for redevelopment.
5) Also, presently a developer buys properties in stages and takes up cluster redevelopment. With the new policy, it will be easier for the housing societies to come together and negotiate with a developer.
6) Developers who have already started cluster redevelopment can choose to migrate to the new policy.
A committee comprising MMRDA commissioners, SRA chief and urban development principal secretary is currently reworking the policy. The committee is having consultations with the Maharashtra Chamber of Housing Industry and Property Owners Association.
