Mumbai: In a significant move aimed at addressing the housing needs of Project-Affected Persons (PAPs), the state cabinet in its meeting on Wednesday, approved a policy mandating the provision of flats to individuals displaced by ongoing infrastructure projects. This move has been applauded and welcomed by CREDAI-MCHI, the apex body of real estate developers in Mumbai Metropolitan Region (MMR).
According to the policy, the Brihanmumbai Municipal Corporation (BMC), Slum Rehabilitation Authority (SRA) and the Mumbai Metropolitan Region Development Authority (MMRDA) are required to prepare a detailed action plan to create a sufficient number of flats for PAPs in the next 15 years.
Heralded as a forward-thinking initiative, this policy promises to mitigate the challenges faced by PAPs and bolster urban redevelopment efforts, CREDAI-MCHI said and commended this decision believing that it will have far-reaching positive impact on the real estate sector and the overall urban landscape.
These authorities (BMC, SRA and MMRDA) need to evaluate the demand for PAP flats within the next 3-5 years and enhance the Transfer of Development Rights (TDR) generation and utilization to make the project economically viable.
According to the President of CREDAI-MCHI, Domnic Romell, the BMC alone requires 36,000 PAP units to accommodate individuals displaced by ongoing infrastructure projects. “The policy stipulates that additional flats created in residential projects regulated by BMC and MHADA will be allocated for PAPs while the recent protests in Mulund have highlighted the urgent need for PAP accommodations, as residents opposed the resettlement of 7,500 units of Dharavi redevelopment project near Kelkar College,” he said.
Explaining the benefits of the policy, Romell said that by mandating the construction of flats specifically for PAPs, the government ensures a steady supply of housing units, reducing the strain on existing housing stock. “This move is expected to accelerate urban redevelopment projects by providing clear resettlement options for displaced individuals. The policy's emphasis on improving TDR generation and utilization will make PAP housing projects more economically feasible. Developers will be incentivized to participate in these projects, ensuring that the necessary financial mechanisms are in place to support large-scale redevelopment,” Romell said.
According to the policy, a coordination committee will prioritize the availability of PAP flats, ensuring a streamlined process. This committee, involving various planning authorities, will oversee the implementation and address any challenges that may arise, facilitating smoother execution of the policy.
“Developers will be allowed to amalgamate plans of various planning authorities, enabling them to adjust the premium payable to authorities by up to 50% on the units from the sale component. This flexibility is expected to attract more developers to engage in PAP housing projects, ensuring a robust supply of flats. This also addresses the long-pending demand of CREDAI-MCHI for rationalizing premiums,” the Chief Operating Officer (COO) of CREDAI-MCHI, Keval Valambhia said.
“CREDAI-MCHI applauds the government for this visionary initiative. It reflects a commitment to inclusive growth and sustainable urban development. With careful implementation and continued focus on the needs of PAPs, this policy can serve as a model for other states and contribute to the holistic development of the city’s urban centres,” Valambhia concluded.
