How Can The Cluster Redevelopment Scheme Aid In The Redevelopment Of The Mumbai Landscape?

The Government of Maharashtra has introduced a cluster redevelopment scheme for the urban rejuvenation of Mumbai in accordance with specific provisions of the Development Control Regulations for Greater Mumbai.

The overarching objective is the redevelopment of extant ancient structures and the creation of space for the development of infrastructures and public amenities within and around the cluster.

It is a plan for the redevelopment of a concentration of buildings or structures, possibly through the consolidation of multiple parcels held by distinct parties. The minimum size of these clusters is 4000 sq. m. in the island city and 6000 sq. m. in the suburbs of Greater Mumbai, and additional incentives are offered for the formation of clusters of larger sizes.

To enable cluster formation, government and semi-government lands falling within the proposed cluster, whether vacant or constructed with office buildings/tenanted residential buildings, and residential co-operative housing society buildings older than 30 years may be incorporated into the cluster.

The varied categories of structures deemed eligible for inclusion in the Urban Renewal Scheme include old and dilapidated structures that existed prior to 1969, buildings in hazardous condition even after 1969, declared slum areas, etc. Previously, a minimum of 27.88 sq. m. (300 sq. ft.) of carpet area was required for rehabilitation tenements; this minimum has been increased to 35 sq. m. (377 sq. ft.).

The programme is to be carried out through private participation or by local governments appointing agencies.

The promoter/developer of a cluster redevelopment scheme must obtain the irrevocable consents of 51% of tenants/occupants of a single structure and 60% of all structures in the respective cluster, as well as the consents of all owners of all properties falling within the proposed cluster. He must implement the Urban Renewal Scheme by rebuilding the extant structures at his own expense and rehousing the tenants/occupants for free in the reconstructed building.

For implementing the scheme, the promoter/developer will be compensated in the form of incentive FSI in proportion to the rehabilitation component. 10% to 35% more recovery area is added to the extant area as the cluster size increases.

The proportion of incentive FSI for sale to scheme implementing agency ranges from 85% to 130% of rehab component, with cluster sizes spanning from 4000/6000 square metres to more than 10 hectares, respectively.

The promoter/developer must develop the public amenity reservations imposed by the Sanctioned Development Plan for Greater Mumbai on sites included in the cluster and give it over to the planning authority at no cost. According to the comments and suggestions of the respective infrastructure departments of the BMC planning authority, he will renew and develop the onsite infrastructure.

BMV collects development cess proportional to the proposed construction area in the urban renewal cluster from the developer for external infrastructural facilities to be constructed. After the completion of the Urban Renewal Scheme, the land with new structures will be transferred to a co-operative housing society of I rehabilitated tenants/occupants and new members who purchase apartments from the sale portion.

Residents must be made more aware of the scheme's parameters and benefits in order for all stakeholders to make a prompt, positive decision to participate.

Tenants / Occupants must be educated on the merits of the programme by the government and the local planning agency. 

For the project to be smoothly accepted by the majority of stakeholders, stringent provisions for a few unscrupulous non-consenting parties are required. There is a need for coordination between government and quasi-government agencies. Clearances must be obtained within a specific timeframe. There is a need for flexibility in the parameters of the scheme to allow for the timely incorporation of provisions for issues that arise during implementation.

Enhanced incentive FSI for sale is provided in order to entice private agencies to participate in the implementation of cluster redevelopment schemes. The government will act to convince the remaining 30% of plot owners to assent to the scheme once they have obtained the consent of 70% of plot owners.

Under the leadership of the Chief Secretary of State of Maharashtra, a committee with the authority to decide on the incorporation of government and semi-government property in the respective cluster redevelopment scheme has also been established.

The Municipal Commissioner has been granted the authority to make decisions regarding the majority of the cluster redevelopment scheme's parameters, as required. Recent decisions by the Maharashtra government and BMC to reduce by fifty percent a certain premium required to be paid by private agencies in order to implement the cluster redevelopment initiative have boosted cluster redevelopment.