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Mumbai realty: Maximum City finally gets maximum land bank boost

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Mumbai | Published: April 26, 2018 5:37:24 AM

According to the proposed plan, of the total 3,685 ha, about 2,000 ha (including 330 ha of salt pans) will be used for affordable housing. Other social infrastructure such as old age homes, special areas for children and differently-abled people, open spaces, schools, hospitals, museums and theatres also figure prominently in the plan.

In the biggest ever addition to Mumbai’s land bank, the Maharashtra government on Wednesday said it will unlock 3,685 hectares (ha) of public and private land currently tagged as no development zones.In the biggest ever addition to Mumbai’s land bank, the Maharashtra government on Wednesday said it will unlock 3,685 hectares (ha) of public and private land currently tagged as no development zones.

In the biggest ever addition to Mumbai’s land bank, the Maharashtra government on Wednesday said it will unlock 3,685 hectares (ha) of public and private land currently tagged as no development zones. The land, it said, will be used to create a million affordable housing units by 2034, besides social infrastructure.

According to the Development Plan 2034 (DP2034) document, the total cost of implementation of the plan by the planning authority Municipal Corporation of Greater Mumbai is estimated at Rs 14.15 lakh crore. This includes the acquisition cost of all reserved lands, cost of constructing new roads and widening of existing ones, building construction as well as cost of open space and cemetery development.

The DP document states that the plan “does not stand even a slim chance to get implemented” considering the huge cost of Rs 14 lakh crore if all of the expenses were to be met through the state budget. It has, therefore, proposed the involvement of private players and landowners as partners. The document says that the state will “draw the owners of lands into partnerships…to see the DP through” by “providing a higher potential for the reserved land” and offering “compensation in the form of FSI/TDR (floor space index/ transfer development rights) for amenities space built by the owner”.

According to the proposed plan, of the total 3,685 ha, about 2,000 ha (including 330 ha of salt pans) will be used for affordable housing. Other social infrastructure such as old age homes, special areas for children and differently-abled people, open spaces, schools, hospitals, museums and theatres also figure prominently in the plan. DP2034 also envisages the creation of 8 million jobs.

DP2034 was approved by chief minister Devendra Fadnavis on Tuesday. However, the state government is working on some changes to the document. Nitin Kareer, principal secretary, Urban Development Department in the state government, told FE the notification for DP2034 would be given shortly.

“The notification will be issued in the next 10 days because there will be some changes. The notification will be in two parts. One will be the sanctioned part, which will be the sanctioning of the development plan as well as the development control regulations. For the second part, some changes of the planning committee of the planning authority have been accepted by the government. These new changes, wherever they are of a substantial nature, will be republished for seeking suggestions and objections from the public. This process will also start simultaneously.”

Industry experts welcomed the move to free up land for real estate and infrastructure development. Niranjan Hiranandani, founder and chairman and managing director of Hiranandani Communities, said the government could well be on its way to achieving its stated target of a million affordable housing units. “This also dovetails with the prime minister’s mission of housing for all. There is a huge demand for affordable housing with 50% of the population in Mumbai residing in slums, not to mention about 300 migrants who come to Mumbai daily, adding to its population. Unless alternative accommodation is created, there is no way to stop the growth of slums.

For them and for residents of non-cessed buildings, DP2034 will give them a better, more comfortable life, thereby enhancing their liveability index. Similarly, the effort to grow workspaces uniformly rather than at just the existing business districts means ‘walk to work’ will become a reality, which is a positive for Mumbai’s overall liveability index,” he added.

In another significant step, the FSI for the island city has been raised to 5 for commercial buildings and to 3 for residential development from 1.33 earlier. In the suburbs, the FSI for residential development has been raised to 2.5 from 2, and to 5 from 2.5 for commercial buildings. (The FSI is a measurement that defines the extent of construction permissible on a plot. An FSI of 5 means a built-up area of up to five times the size of the total plot).

Anuj Puri, chairman, ANAROCK Property Consultants, said that the increase in the FSI means there will be renewed construction activity. He said, “There was little or no activity, and no vibrancy at all in the island city. Now, you will see new development and job creation. Commensurate with this, certainly, the transport infrastructure should be upgraded as well and we are seeing a lot of activity in this area as well of late.”

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