Government is planning to allow international arbitration for infra development disputes

Ananya,

14th January 2015

Real estate News in Mumbai

bmc

fsi

floor space index

ppp model

infra development plans

affordable housing project

naredco

municipal corporation of greater mumbai

mcgm

ppp

neutral city

international arbitration

maharashtra government

brihanmumbai municipal corporation

housing for all by 2022

tdr

chief minister devendra fadnavis

mumbai development plan

mumbai development plan 2034

development control rules for mumbai

the mrtp act

Follow Discussion

Also see discussions for

Mumbai Real estate News Real estate News in Mumbai

Replies (11)

Hi Abhishek and Ashish,
You mean to say that the coming year will be a period of uncertainity and a number of project launches will be stopped. Then Developers will must have difficulty to lock project layouts as the new plan will have different rules for open space regulations, height restriction of buildings and general usage of space.

Ramesk Polekar, Mumbai

8th May 2015

Comment

Yes, and it will help the buyers in many ways as Maharashtra Govt. has directed MCGM to submit a re-worked plan by August, after which it will be open for further suggestions.

Sunil Joshi, Mumbai

8th May 2015

The interesting part of Mumbai Real Estate is that every single day you will get some information on Realty market. Today, it came to know that major developers of Mumbai withold their launches while the city is waiting for its new development plan.

Abhinandsavalla, Mumbai

8th May 2015

Comment

You are right Abhinands,
I read in article that Oberoi Realty has held back the launch of its Borivali project, which was projected to have 800-1000 apartments, while Godrej Properties has held back 3 projects due to the confusion.

Ashish Bhoite, Mumbai

8th May 2015

I am telling you why such things are happening in the Mumbai Realty Market. The Mumbai real estate market is expected to see a further drop in new project launches and probably, even in sale of apartments are in doubt over the new development plan of the city.

Abhinandsavalla, Mumbai

8th May 2015

May be, because major developers are looking forward to delays in launches, they need some clarifications relating to the new development plan.

Ashish Bhoite, Mumbai

8th May 2015

Ohh !!!!
Are you talking about last month news? In which the state asked the Municipal Corporation of Greater Mumbai, to modify the new development plan 2034 for Mumbai on April 21, after it got huge criticism.

Abhinandsavalla, Mumbai

8th May 2015

Right Abhinands,
Among number of other changes, the plan had increased the floor space index, which indicates permissable construction on any plot. According to experts, if height and developable limitations are re-engineered, companies will have to go back to the drawing board and reconstruct plans.

Ashish Bhoite, Mumbai

8th May 2015

There wer more reason, the plan failed to provide sufficient idea and stand for aiding affordable housing that the city requires so desperately. The DP was not clear about whether the densification actions would do any good for housing of low income groups and middle income groups, which form the backbone of residential activity for any Indian city.

Sunil Joshi, Mumbai

7th May 2015

Comment

Gud evening Sunil,
Which are the major areas where you think that BMC should work out until the revised development plan was tabled?

Ramesk Polekar, Mumbai

7th May 2015

There are certain points where the DP should also detailed on: 1) How it aims to address the problem of affordable housing, 2) How the infrastructure is to keep tempo with the requirement coming up out of population growth, 3) How the city can improve and increase its open spaces, and, 4) How the concept of differential FSI and transit-oriented densification and development can help the city to improve the entire standard of living, create and manage resources, and keep competitive.

Sunil Joshi, Mumbai

7th May 2015

But first and primarily, the current land use map needs to be corrected. This is simply a case of correct and accurate documentation of the on-ground situation, and there can not be any margin for error here. Pressing out the errors on this level will make sure that the base for the DP is accurate and reliable,

Rajatrawal, Mumbai

7th May 2015

Till then buyers should analyze their needs well to decide if they should buy from the projects available now, or if they can wait until clearness comes out via the new Development Plan. Am i right?

Sunil Joshi, Mumbai

7th May 2015

Hi all,
Have you read the news that Maharashtra government is throwing away the Mumbai Development plan 2034? Do you know that it may throw the realty market into further mess, with deals for land packages, redevelopment projects and even private equity transactions for financing these projects in Mumbai getting stuck due to lack of clearness on the city's proposed development plan.

Ketalpujara, Mumbai

7th May 2015

Comment

Right Ketal,
Municipal Corporation of Greater Mumbai declared the new Development Plan 2034, getting huge complaints for large number of mistakes in the suggested plan, making the state government to throw away it. It has also asked the civic body to modify it in 4 months.

Nikhil Kanetkar, Pune

7th May 2015

Hi Nikhil,
Only thing is that, we all need to be patient. According to guidelines from the state government, the civic body will be using the strict of the 2 development plans. Existing one and the suggested Development Plan 2034 for approving any projects in the city.

Ketalpujara, Mumbai

7th May 2015

It means developers will have to wait to study the plans and their effects before launching new projects. In the meanwhile, supply of new units may fall, which will help in clearing the existing unsold inventory to some level. Right !!!!!

Nikhil Kanetkar, Pune

7th May 2015

According to me the major drawbacks was the mapping of existing land use and proposals related to densification, infrastructure, and open spaces. The approach of this Development Plan was to guide development with differential FSI as an instrument with densification of transport focused corridors.

Ketalpujara, Mumbai

7th May 2015

Industry experts say most private companies and their foreign investors are gathering to Singapore when they need to resolve disputes. Dispute resolution in India, whether before the courts or in arbitration, has not proved to be effective due to accumulate before the courts, busy calendars. It is not unusual to see government agreements involved in legal proceedings, and an effective dispute resolution medium will help all involved.

Veena K,

15th January 2015

Comment

Meanwhile, some state-run firms have also started including clause for international arbitration in their new agreements. Companies like Oil & Natural Gas Corp and Gammon India have arbitration clause and the venue as Singapore. A lot of the island nation's laws are established on the basis of the Indian Penal Code and they are culturally compatible or neutral.

Sujan Mitra,

15th January 2015

Comment

In the infrastructure sector, there have been lot of problems in the past and investors are steering away due to this. The step to include arbitration clause at a neutral country like Singapore or London would give confidence to investors. The arbitration clause at a neutral territory has already become a norm in private contracts in the country. In PPP also it could result in better dispute resolution. Singapore is already a favourite place for Indian companies to arbitrate disputes.

Veena K,

14th January 2015

Comment

While the government is trying to channel more funds to the sector, investors have become extremely cautious because of past experiences. Since 2006, around 50% of the total inbound private-equity investment had been to the infrastructure sector, including in roads, power and real estate.

Sujan Mitra,

14th January 2015

Comment

Yes,
India needs hundreds of billion dollars to fix its creaky infrastructure such as highways, ports, power plants and storage facilities, as well as build new ones. According to experts, inadequate infrastructure is shaving off as much as 2 % points from the country's gross domestic product.

Veena K,

14th January 2015

Comment

Fo which Our Govt. will have to place a clause allowing arbitration in a neutral city while signing public-private partnerships (PPP) and other infrastructure contracts. India is likely to invite investments over the next 2 to 3 years in projects in power, coal, roads and transport and water supply.

Sujan Mitra,

14th January 2015

Comment

The government is planning to allow resolution of disputes in infrastructure development through arbitration in neutral places like Singapore, London and Malaysia, a step aimed at increasing the confidence of foreign investors in putting money in a sector that is key to economic growth but is struggling due to funds shortage.

Veena K,

14th January 2015

Comment