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There is tremendous buzz about CRZ redevelopment and the long-pending SRD in Mumbai. But can these initiatives hope to clear those elusive execution hurdles?
With a bird's eye view from the middle of the Arabian Sea, one can easily view some newly constructed tall buildings adorning the Mumbai skyline ' a spectacular and grand view, any which way. But when you come closer to the coastline, say, between Versova and Cuffe Parade, there are around 2,500 old dilapidated buildings falling under the coastal regulatory zones (CRZs) awaiting increase in floor space index (FSI) as part of the redevelopment process. Understandably, residents here seems to have got a sigh of relief as the state government's recent decision to involve the Maharashtra Housing and Area Development Authority (MHADA) in housing projects in the CRZ areas is expected to yield one lakh affordable homes in the city.
The move has come in the wake of Centre agreeing to allow private participation in the redevelopment of dilapidated buildings and large slum pockets falling under the CRZ. Following that, state environment minister Suresh Shetty recently met Union Environment Minister Jairam Ramesh and broadly agreed to allow private participation to the extent of 49% and MHADA to have 51% stake.
Around 38% of the city is governed by stringent CRZ rules that have blocked redevelopment of around 5,000 dilapidated buildings and slums in areas such as Colaba, Girgaum, Mahim and stretches in Borivali. Hemant Shah, head, Slum Rehabilitation Authority (SRA) told TSI, 'The state government is trying to increase the FSI from the existing 2.5 to 3 for the redevelopment of old dilapidated buildings. Due to our involvement in various slum redevelopment projects between Versova to Cuffe Parade in Mumbai, we will be able to redevelop several dilapidated buildings and slum pockets falling under the CRZ.' Ackruti City is one instance of a builder in the affordable housing space. As there are affordable housing projects with lesser margins, the company will be using cost efficient techniques. Hemant Shah, Chairman, Ackruti City told TSI, 'Though the projects are under affordable housing, the customers are still looking at premium amenities such as club house, gym, kids play area, good entrance lobbies et al.' Frugality in the city of dreams! use of the vicinity to the sea. Smaller rivers like Meethi and areas covered by salt land make matters complicated when it comes to developing CRZs. But if there is a road between land and sea, the impact of CRZ comes down. According to Pranay Vakil, Chairman, Knight Frank India, 'As for redevelopment of CRZ, work is being done on exploiting the Eastern waterfront in Mumbai between JJ School of Architecture and the Columbia University. The idea is to improve the infrastructure and connectivity of the island city with the that of mainland.'
Interestingly, CRZ redevelopment buzz comes at a time when sales of apartments in Mumbai has dropped by 35% to 50% over the past four months, as investors from financially rich communities have formed a cartel and are pushing up prices. Builders are no less. Certain Mumbai and Pune-based builders believe only in developing super luxurious apartments, instead of offering affordable housing. In fact, such builders should focus on passing on the zero land cost benefit to flat buyers, which they are not doing. Gautam Chatterjee, VP & CEO, MHADA states, 'Currently, private developers haven't approached us for associating with us for redeveloping dilapidated buildings & slums under CRZ.'
Around 100 long-pending SRA schemes have failed to get implemented in Mumbai due to various bottlenecks. Ramesh Prabhu, President of Mumbai-based Affordable Housing Welfare Organisation of India (AHWOI) critically argues, 'One should not expect CRZ projects to come up before five years. So, what is the use and where is the affordability factor if the evolving demands for redevelopment in CRZs by its residents are not currently met?'
Amidst the scenario, in order to give strong competition to MHADA's new affordable housing CRZ schemes with the state government, AHWOI is taking the lead to initiate Co-operative Housing Movement with the aim of housing for all. According to Prabhu, the movement will initially begin in areas like Vasai and will then roll out pan-Mumbai. The company will charge only 20% service tax from flat buyers as opposed to 100% from most well-known builders.' Competitors Ackruti City, Acme Housing and MayFair Housing are also actively involved in launching affordable housing projects in extended suburbs of Mumbai.
As for Slum Rehabilitation Development (SRD), real estate developers like Acme Housing and Hiranandani Constructions, who are actively involved, are not considering plans to start any new SRDs in the near future. The cited reasons include disinterest shown by Supreme Court to increase eligibility of slum dwellers beyond 1995 for rehabilitation and lack of focus in SRDs that leads to delays in completion. Adds Shah, 'This (SC order) is the main reason why builders have to focus on constructing slum rehabilitation (SR) project in phases. In order to approve any one particular slum rehabilitation project, slum dwellers has a major 70% consent and the SR project cannot be completed in one go.'
However, the demand push is driving some realtors to take the plunge. Acme Housing has started construction of one SRA project each in Andheri East, Goregaon and Kandivali in Mumbai and invested `750 million. Pravin Doshi, MD, Acme Housing told TSI. 'Mafias who belong to slum dwellers associated with certain government officials have already demanded heavy bribe to the tune of `10 to 30 million to pass the project. So we feel we will be able to offer apartments to them only in the next 3-5 years and not before that.' In order to overcome these main challenges, SRA claims to be holding talks with the government to meet their evolving demands.
For the people residing in CRZs, the ministry's initiative is laudable, but the complications are too daunting. Until they get sorted out, the prospect of affordable housing in this area would well remain a distant dream.
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There is tremendous buzz about CRZ redevelopment and the long-pending SRD in Mumbai. But can these initiatives hope to clear those elusive execution hurdles?
With a bird's eye view from the middle of the Arabian Sea, one can easily view some newly constructed tall buildings adorning the Mumbai skyline ' a spectacular and grand view, any which way. But when you come closer to the coastline, say, between Versova and Cuffe Parade, there are around 2,500 old dilapidated buildings falling under the coastal regulatory zones (CRZs) awaiting increase in floor space index (FSI) as part of the redevelopment process. Understandably, residents here seems to have got a sigh of relief as the state government's recent decision to involve the Maharashtra Housing and Area Development Authority (MHADA) in housing projects in the CRZ areas is expected to yield one lakh affordable homes in the city.
The move has come in the wake of Centre agreeing to allow private participation in the redevelopment of dilapidated buildings and large slum pockets falling under the CRZ. Following that, state environment minister Suresh Shetty recently met Union Environment Minister Jairam Ramesh and broadly agreed to allow private participation to the extent of 49% and MHADA to have 51% stake.
Around 38% of the city is governed by stringent CRZ rules that have blocked redevelopment of around 5,000 dilapidated buildings and slums in areas such as Colaba, Girgaum, Mahim and stretches in Borivali. Hemant Shah, head, Slum Rehabilitation Authority (SRA) told TSI, 'The state government is trying to increase the FSI from the existing 2.5 to 3 for the redevelopment of old dilapidated buildings. Due to our involvement in various slum redevelopment projects between Versova to Cuffe Parade in Mumbai, we will be able to redevelop several dilapidated buildings and slum pockets falling under the CRZ.' Ackruti City is one instance of a builder in the affordable housing space. As there are affordable housing projects with lesser margins, the company will be using cost efficient techniques. Hemant Shah, Chairman, Ackruti City told TSI, 'Though the projects are under affordable housing, the customers are still looking at premium amenities such as club house, gym, kids play area, good entrance lobbies et al.' Frugality in the city of dreams! use of the vicinity to the sea. Smaller rivers like Meethi and areas covered by salt land make matters complicated when it comes to developing CRZs. But if there is a road between land and sea, the impact of CRZ comes down. According to Pranay Vakil, Chairman, Knight Frank India, 'As for redevelopment of CRZ, work is being done on exploiting the Eastern waterfront in Mumbai between JJ School of Architecture and the Columbia University. The idea is to improve the infrastructure and connectivity of the island city with the that of mainland.'
Interestingly, CRZ redevelopment buzz comes at a time when sales of apartments in Mumbai has dropped by 35% to 50% over the past four months, as investors from financially rich communities have formed a cartel and are pushing up prices. Builders are no less. Certain Mumbai and Pune-based builders believe only in developing super luxurious apartments, instead of offering affordable housing. In fact, such builders should focus on passing on the zero land cost benefit to flat buyers, which they are not doing. Gautam Chatterjee, VP & CEO, MHADA states, 'Currently, private developers haven't approached us for associating with us for redeveloping dilapidated buildings & slums under CRZ.'
Around 100 long-pending SRA schemes have failed to get implemented in Mumbai due to various bottlenecks. Ramesh Prabhu, President of Mumbai-based Affordable Housing Welfare Organisation of India (AHWOI) critically argues, 'One should not expect CRZ projects to come up before five years. So, what is the use and where is the affordability factor if the evolving demands for redevelopment in CRZs by its residents are not currently met?'
Amidst the scenario, in order to give strong competition to MHADA's new affordable housing CRZ schemes with the state government, AHWOI is taking the lead to initiate Co-operative Housing Movement with the aim of housing for all. According to Prabhu, the movement will initially begin in areas like Vasai and will then roll out pan-Mumbai. The company will charge only 20% service tax from flat buyers as opposed to 100% from most well-known builders.' Competitors Ackruti City, Acme Housing and MayFair Housing are also actively involved in launching affordable housing projects in extended suburbs of Mumbai.
As for Slum Rehabilitation Development (SRD), real estate developers like Acme Housing and Hiranandani Constructions, who are actively involved, are not considering plans to start any new SRDs in the near future. The cited reasons include disinterest shown by Supreme Court to increase eligibility of slum dwellers beyond 1995 for rehabilitation and lack of focus in SRDs that leads to delays in completion. Adds Shah, 'This (SC order) is the main reason why builders have to focus on constructing slum rehabilitation (SR) project in phases. In order to approve any one particular slum rehabilitation project, slum dwellers has a major 70% consent and the SR project cannot be completed in one go.'
However, the demand push is driving some realtors to take the plunge. Acme Housing has started construction of one SRA project each in Andheri East, Goregaon and Kandivali in Mumbai and invested `750 million. Pravin Doshi, MD, Acme Housing told TSI. 'Mafias who belong to slum dwellers associated with certain government officials have already demanded heavy bribe to the tune of `10 to 30 million to pass the project. So we feel we will be able to offer apartments to them only in the next 3-5 years and not before that.' In order to overcome these main challenges, SRA claims to be holding talks with the government to meet their evolving demands.
For the people residing in CRZs, the ministry's initiative is laudable, but the complications are too daunting. Until they get sorted out, the prospect of affordable housing in this area would well remain a distant dream.
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Proves Its Mettle Once Again...
IIPM BBA MBA Institute: Student Notice Board
Ragging rights and wrongs
Delhi University Students' Union (DUSU): Students' Unions can not be banned
The hunt for hostel and paying guest (PG) accommodation for students
Best Colleges for Vocational Courses in India
