Hurdles before cluster development schemes to go

The state govt has decided to remove many of the hurdles before the cluster redevelopment schemes. As per the decision, a developer will have the power to acquire private land coming in the way of his proposed cluster redevelopment project if the owner of that land refuses to hand it over.

Minister of state for housing Sachin Ahir told dna on Tuesday that the amended cluster redevelopment policy had been placed before chief minister Prithviraj Chavan for approval.

"Acquiring private land has been a major stumbling block in implementing cluster redevelopment schemes in the city. Once this decision comes into effect, a developer will be able to acquire privately-owned land after compensating the owner. The quantum of compensation will be decided by a government-appointed committee headed by the chief secretary," Ahir said.

Sources said compensation would be based either on the government ready-reckoner rate or the prevailing market rate.

"The state- appointed committee will have full right to decide the compensation, and it will be binding on both the developer and the land owner. However, if a landowner refuses to budge, the state will have the right to acquire the land. This amendment will be applicable to schemes in Mumbai city and the suburbs," a senior urban development official said on condition of anonymity.

According to senior officials, the cluster redevelopment scheme wasn't a great success because private landowners were reluctant to sell their land to developers. The Bhendi Bazaar cluster development scheme is one of the best examples of a scheme not taking off despite getting all necessary approvals because a few private landowners are resisting acquisition of their land.

"The delay in execution of the project is resulting in huge cost overruns. Hence, the decision to remove hurdles," an official said.

The cluster redevelopment scheme was announced in 2009, and the government has received 48 proposals since then.

Under the new policy, a developer can avail a floor space index of 4. The minimum area required to develop in South Mumbai is 4,000 sq m, and it's 10,000 sq m in the suburbs.

As per the new policy, the access development road should be at least 10 metres wide; and only buildings paying cess and those older than 30 years are qualified for cluster redevelopment. For rehabilitation, the minimum carpet area is 300 sq ft. In case of new apartments with size exceeding 1,000 sq ft, the tenant or old flat owner will need to pay for any additional space as per the construction rate.