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ULCA repeal, a panacea?

The euphoria over the release of surplus land once the ULCA is scrapped would be short-lived and make very little difference to property prices in Mumbai.

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The euphoria over the release of surplus land once the Urban Land Ceiling Act (ULCA) is scrapped would be short-lived and make very little difference to property prices in Mumbai.

Although the state government has to meet the 2008 deadline — set by the Centre — to repeal ULCA, reform the stamp duty structure and the Rent Control Act, the ground reality shows there is not much land available for development.

Of the 30,000 acres that would be released after the Act is scrapped, only 8 acres will be available for development. Almost 12,000 acres comes under coastal regulation zone (CRZ, no-development zone and forest), 5,000 acres is locked in legal disputes, 3,000 acres have illegal slums and 2 acres has been exempted from ULCA by the government.

A urban development ministry official says, “Even after the Act is repealed Mumbai will strive for newer avenues to acquire land.

The repeal will definitely help Pune, Nagpur and Nashik.” “There are proposals before the union government to amend the CRZ Act and provide 5,500 acres of salt pan land,” he explained.

Union urban development minister, S Jaipal Reddy has reiterated that unless the state government repeals the ULCA, it will not qualify for Rs11,000 crore funds under the Jawaharlal Nehru National Urban Renewal Mission.

Chief minister Vilasrao Deshmukh said, “My government is committed to repeal the ULCA. The cabinet has cleared it and we introduced the same in the monsoon session.

Unfortunately, some political parties sought more time for debate. We will have to wait till winter session to scarp the Act.”

The acrimony over repealing the Act in the assembly and council, with the Opposition and ruling benches playing delaying tactics, provided the platform for putting the Act on hold for six more months. All political parties have given their in-principle consent for doing away the Act.

BJP general secretary Vinod Tawde said, “The Congress is hand-in-gloves with builders’ lobby, which wants to delay the ULCA as well as the implementation of new housing policy to reap dividends from mill land development.

The developers, who have locked funds in mill land development, want to fetch higher prices and have asked the government to put the new policy, which will stabilise prices, on hold.”

Interestingly, BJP’s ally, Shiv Sena was in the forefront of those opposed to repealing the Act. Sena leaders, Ramdas Kadam and Diwakar Raote explain, “We want an exhaustive debate on the issue.”

But, there were two groups even within the BJP. While, Raj Purohit (MLA) was all for scrapping the Act, Madhu Chavan (MLC) wanted more debate.

The flip-flop among the political parties is based on circumstances. Else, how does one explain the protests from a section of the BJP and Sena, while they advocated its scrapping at the Central level when Vajpayee was the prime minister?

According to Niranjan Hiranandani, Managing Director of Hiranandani Group, “There is no point blaming the developers. The government should show political will.

All private developers in Mumbai have given their consent to repeal the Act. They have been pursuing the issue with the state government for last three years.” But voices of difference continue to emanate. Whether, it is Mrinal Gore or PB Samant, Janata Dal (S) leaders are determined to oppose repealing of the ULCA tooth-and-nail.

Gore laments that the government didn’t asserted itself in reclaiming the excess land provided by the ULCA to make affordable houses for the lower strata in the city.

She says 5,000 acres of land is still available, which can be legally acquired by the government if it desires and address the housing problems, without scrapping the Act. Once the Act is repealed, the released land will be grabbed by developers.

Those opposed to repealing the Act, also question MHADA’s motive behind abandoning its housing project for the poor. A NCP cabinet minister  said, “I feel MHADA should be provided more teeth to undertake housing projects, if we want to make affordable housing a reality in Mumbai.”

On its part the Sena fears whole-hearted support to ULCA repeal may not appeal to its sons of the soil agenda. Instead, they want to persuade the government to continue its regulations on housing sector, albeit with or without ULCA.

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