BMC Calls for Increased Housing Stock Through PPP to Boost MMR Redevelopment
BMC Commissioner Bhushan Gagrani emphasizes the need for public-private partnerships to create enough housing stock for redevelopment in the Mumbai Metropolitan Region (MMR).
Housing StockRedevelopmentPublicprivate PartnershipsBmcMmrReal Estate NewsOct 06, 2024
Dr. Gagrani highlighted the importance of exploring public-private partnerships (PPP) to address the housing shortage. He noted, 'Redevelopment is a better compliant approach, and we need to structure various avenues properly with due feasibility.' He also emphasized the need for incentivizing redevelopment to tackle various issues affecting the process, cautioning that the incentives should not be solely tied to financial feasibility. 'For undertaking any redevelopment project, it has to be financially feasible, and awareness among society members is crucial,' he said.
Speaking on the BMC's vision to align infrastructure with the rapid growth of redevelopment, Dr. Gagrani acknowledged potential challenges. 'Mumbai's infrastructure might face challenges with the city's redevelopment, particularly in terms of surface infrastructure like urban mobility, parking areas, and road quality. We have plans ready for these, but the infrastructure below the land, such as sewage water and water supply, might be more challenging due to the increasing per capita water demand,' he added.
Dr. Gagrani mentioned that Section 33(7A), which applies to the redevelopment of dilapidated and unsafe buildings in the suburbs, has been well-received by private societies, which are opting for competitive bidding from developers.
Gautam Chatterjee, the Former Founding Chairman of MahaRERA, advised that incentivizing redevelopment is essential but needs to be balanced. 'With about 8,000 projects stuck in Mumbai due to timeline issues, it is crucial to disseminate knowledge and information to educate society members and stakeholders about the processes of redevelopment. We need a web portal to display all information transparently and monitor projects. E-monitoring methods and an Alternate Dispute Resolution mechanism are also necessary,' he said.
NAREDCO Maharashtra, in collaboration with Chatterjee, launched 'Grihamony Redevelopment Stakeholders Federations (GRSF)' to enhance awareness about redevelopment. Dr. Niranjan Hiranandani, Chairman of NAREDCO and Co-founder of the Hiranandani Group, advocated for reducing the premium on redevelopment. 'The challenge is to match the pace of redevelopment. A 50% reduction in premium would create more affordable housing in the city and improve quality of life,' he stated.
Rajan Bandelkar, Vice Chairman of NAREDCO and Director of Raunak Group, emphasized the importance of balancing viability for the private sector. 'The government should incentivize societies that undertake self-redevelopment and use lesser FSI. People using lesser FSI should not be charged a premium, given the climate change challenges and issues surrounding the redevelopment agenda,' he added.
Frequently Asked Questions
Why is there a need for increased housing stock in MMR?
There is a need for increased housing stock in MMR to accommodate the growing population and to ensure that redevelopment projects are financially viable and beneficial for the community.
What role do public-private partnerships play in redevelopment?
Public-private partnerships (PPP) play a crucial role in redevelopment by bringing together the resources and expertise of the private sector with the regulatory support of the government to create sustainable housing solutions.
What challenges does Mumbai face in terms of infrastructure during redevelopment?
Mumbai faces challenges in terms of surface infrastructure like urban mobility, parking areas, and road quality, as well as below-ground infrastructure such as sewage systems and water supply, which need to be addressed to support redevelopment.
How can the premium on redevelopment be reduced?
The premium on redevelopment can be reduced through government incentives, transparent information dissemination, and a balanced approach to incentivize societies that use lesser FSI and undertake self-redevelopment.
What is the role of Grihamony Redevelopment Stakeholders Federations (GRSF)?
GRSF is a platform launched by NAREDCO Maharashtra to enhance awareness about redevelopment processes and educate society members and stakeholders, ensuring smoother and more efficient project execution.
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