Mumbai Real Estate Developers Develop Slum Project

“ Mumbai Real estate developers and consultants are not hopeful that the Maharashtra government’s plan to develop slums falling under the Coastal Regulatory Zone II ( CRZ II) would be implemented soon. ”

Share on            

Email Friend     Contact Author

(iRealtyWire.Org) – Mumbai Real estate developers and consultants are not hopeful that the Maharashtra government’s plan to develop slums falling under the Coastal Regulatory Zone II ( CRZ II) would be implemented soon.

he state government has planned to permit redevelopment of around one lakh hutments in sea facing areas of prime locations like Cuffe Parade, Walkeshwar, Bandra, Juhu and Versova in Mumbai. If implemented, this move would free over one crore square feet of land in the city. The state government has also proposed a floor space index ( FSI) of 2.5 for the redevelopment of slums falling in CRZ II. According to Pranay Vakil, chairman of Knight Frank, a global property consultancy firm, this move would witness a lot of opposition from environmentalists.

Some time ago, Indian Prime Minister Manmohan Singh had proposed the opening up of salt pan land in the state. Imagine, if that move could be opposed, the CRZ II norm would certainly have a lot of opposition. If the proposal is properly implemented, it would significantly bring down realty prices in Mumbai.

CRZ- II areas are those that go up to 500 metres on the landward side of high- tide lines and areas around creeks and rivers, where substantial development had taken place before 1991. No new construction is allowed on the seaward side of the roads.

This, according to the state government’s own estimates covers 38 per cent of land in Mumbai. The state government plans to approach the Union ministry of environment and forests seeking sanction for higher FSI. In fact, a proposal to increase the FSI for old and dilapidated buildings in CRZ II from two to 2.5 is also in the making. Estimates suggest there are roughly 2,500 dilapidated buildings and about 60 large slum pockets stretching from Versova to Cuffe Parade falling under the CRZ that are waiting to be redeveloped.

Well- known environmental activist and executive trustee of the Conservation Action Trust, Debi Goenka, pointed out that the whole exercise is a ploy by the builder lobby and the state government to construct luxury housing on prime sea facing land. “ Firstly, construction on CRZ is not permissible. Even if the Central government gives permission, then as per the Swaminathan Committee recommendations, it should happen by the state government or by governmental bodies like MHADA and not by private builders,” he said. Goenka added that the ministry of environment is still in the process of readying a draft proposal which would happen on March 15.

It is not as if the whole exercise would be completed in one year. A simple redevelopment project takes years to go through the paper work and permission process. A project of such a large magnitude and involving CRZ norms would take longer.