After much dilly-dallying, the Congress-led government in Maharashtra on Thursday succeeded in passing a resolution seeking a repeal of the Urban Land Ceiling & Regulation Act (Ulcra) in the state Assembly. This would help release as much as 30,000 acre of land in Mumbai alone, currently in the possession of the Godrejs, Dinshaws, Behramjis, Essel World, Ameer Park, Hiranandanis, Wadia Trust, Indian Railways and others.
The total number of landholders in Mumbai alone whose tracts can now be freed up for development number around 345. Besides, land that is locked in shut industries and similar establishments in the periphery of various cities and towns in the state will also be released. Builders and developers asserted that Thursday?s development would not lead to an immediate crash in land prices as the land locked under Ulcra would come up for development only over the next ten years.
The passage of the resolution was mandatory, as the Centre had set a March 2008 deadline to do so. Without repealing Ulcra, the state could not have accessed Rs 17,689 crore in funds under the Jawaharlal Nehru National Urban Renewal Mission. Of the total 76 proposals worth Rs 23,696 crore under the mission, the Centre has so far approved 46 proposals costing Rs 6,007 crore.
The ruling Congress-NCP combine received support from the BJP, while the Shiv Sena and the CPM opposed the resolution. In April, the Maharashtra government moved a resolution to repeal Ulcra on the last day of the Assembly session. So far, the state was able to acquire 7,854.63 hectare under the Act and blacklisted 255 developers for not following its provisions.
State public works minister and former Mumbai mayor Chhagan Bhujbal told FE: ?Though the intention of Ulcra was good, due to litigation nothing substantial was achieved. I hope the land will be used for housing and other purposes in Mumbai and the rest of Maharashtra.?
Pranay Vakil, chairman, Knight Frank India, said, ?Scrapping Ulcra is in the right direction. About 3,000-8,000 acre of land will now be available for development in the Mumbai market alone. The main areas where land will be released include Ghodbunder, Vikhroli in the distant suburbs, apart from mill lands such as NTC Mills and India United Mills.?
