The state government is already considering seven proposals for undertaking a pilot project for cluster redevelopment of old and dilapidated buildings in Mumbai. The state is also planning to seek technical assistance from the World Bank for the same.

The state had issued advertisements for cluster redevelopment of areas — around 25 acres in size with a population of around 10,000 and with a fair mix of cessed and non-cessed buildings — and had received around 13 proposals, of which seven qualified under the criteria.

The pilot project, billed as the first of its kind urban renewal initiative for planned development, is being mooted by the state to assess the ground level impact of the model, which it says has transformed cities like Shanghai, Singapore and Hong Kong.

Unlike existing models where piecemeal redevelopment of a building or a group of buildings is undertaken, this model aims at an integrated approach, trying to solve infrastructure woes arising from haphazard development.

Mumbai has an estimated 16,000 old and dilapidated buildings, many of them built before 1940. However, the state housing policy notes how the Maharashtra Housing and Area Development Authority (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.

“We must hence think of incentives more attractive than the ones presently being given,” said S S Kshatriya, Principal Secretary of the Housing Department, adding that such cluster models needed to be made more attractive for the tenants, residents and landlords than the existing redevelopment schemes.

The state is examining whether the FSI for such clusters could be hiked, subject to a cap of four as imposed by the apex court, and also whether the residents could be granted a rebate in the property tax assessment.

Officials from the Housing and Urban Development departments had held a series of meetings regarding the DCR amendments recently. “We need to define such clusters and their geographical parameters, and make necessary amendments to the DCR,” added Kshatriya.

However, there is a chance that cluster redevelopment schemes for slums would get only 2.5 FSI which is given to Slum Rehabilitation Authority schemes at present.

The ongoing makeover of Dharavi has been given an FSI of 4 as a special case as it had already been designated as a “difficult area” due to its high population density.

However, the approach for cluster redevelopment of slums would be different as residents may get township-quality roads and amenities like recreational facilities, playgrounds and hospitals.