According to officials in the Urban Development department involved in a proposal to amend the development control regulations (DCR) for the purpose, the FSI of four would make the redevelopment plan attractive to the tenant, the landlord and the developer. The proposal, in its final stages now, also may make it mandatory for developers to pay a development charge for the ‘off- site infrastructure’ required for the clusters like schools, water supply and storm water drains. The on-site infrastructure would have to be provided for by the developer.

The state government is already considering seven proposals under a pilot project for the cluster redevelopment of the old and dilapidated buildings in Mumbai and is also planning to seek technical assistance for the project from the World Bank (WB). The pilot project, billed as a first of its kind urban renewal initiative aimed at bringing about planned development, is being mooted to assess the ground level impact of the model, which the state says has transformed cities like Shanghai, Singapore and Hong Kong.

Unlike current models, where the piecemeal redevelopment of a building or a group of buildings is taken up, the cluster model aims at an integrated approach to the development, and tries to solve infrastructure woes which may arise in case of haphazard development.

It is learnt that the amendments may require the developers to implement the reservations that fall in the cluster as provided for in the development plan (DP) to ensure that the reservations for amenities like recreational grounds and playgrounds do not lapse. The developer may have to ensure that at least 50 per cent of the reservation area be used for the amenity and the rest for the rehabilitation of the people in case the plot is encroached. Some old chawls in Mumbai are also said to be located on plots reserved for amenities.

In addition to a ceiling on the maximum size of the housing units to be built for sale, the amendments may also ensure that the surplus FSI be shared by the Maharashtra Housing and Area Development Authority (MHADA) and the builder in 1:0.5 ratio for the MHADA to ensure a stock of affordable housing and rehabilitation facilities.

Mumbai has an estimated 16,000 old and dilapidated buildings, many of them built before 1940. However, the state housing policy notes how the MHADA has been able to redevelop just 442 such buildings so far. The number of buildings developed by private developers’ stands at 490, and officials admit this is miniscule considering the task at hand.