Why Maharashtra's Cluster Redevelopment Scheme Is Important

While a large number of old buildings in Central Mumbai are in dire need of repair, redevelopment of property in Mumbai does not happen often owing to strict Floor Index (FSI) regulations. However, this may change soon.

Under a cluster development scheme, the Brihanmumbai Municipal Corporation (BMC) has now sought the permission of the Maharashtra State Government for redeveloping Investment Trust chawls that stand on a 3.5-acre plot in South . A high-powered state government committee, headed by BMC Commissioner Ajoy , has already given its nod to the proposal. The state urban development department has to approve the proposal.

When materialised, 960 buildings in this area are likely to become taller, with residents receiving at least 350 sq ft carpet area each. A 30,000-sq ft hospital and a 6,500-sq ft library built on this plot would be handed over to BMC for free.

Why is this important?

• To facilitate the redevelopment of existing buildings, urban- local authorities often set the floor space index (FSI) above the level of existing buildings. Floor space index is the ratio of the floor area to plot area. But, in this aspect, Mumbai is different from major global cities. FSI in Mumbai's Island City has declined since it was imposed in 1964. So, there is not much of an incentive to redevelop existing buildings because owners would lose floor space, if they do so. This has hindered the development of real estate in Mumbai. 

• The nt Control Act is, in a way, also responsible for slow development of private chawls in Mumbai. The Act leaves little incentive for owners to redevelop old chawls. Even if owners invest in redeveloping chawls, tenants have the right to occupy or transfer it. In a scenario like this, redevelopment of Investment Trust chawls is important.

• Many Investment Trust chawls were built between 1900 and 1940. development is important to prevent these from collapsing and having greater floor space.