After corporators last year rejected a stringent policy for redeveloping markets calling it unfeasible, the Brihanmumbai Municipal Corporation (BMC) has now proposed a watered-down policy for the redevelopment of civic markets in the city.
The new policy seeks to levy less premium on builders who wish to redevelop civic markets, and has proposed to charge premium on the ready reckoner (RR) rates on the land, instead of the structure, as was proposed in the earlier policy.

The new policy will have an immediate effect on 25 civic markets, whose redevelopment plan was scrapped by the civic body because it felt that the old policy unduly favoured the builders, after which the then civic chief Subodh Kumar suggested a stringent policy in its place. However, last year, the civic improvements committee rejected Kumar's policy and asked the civic body to frame a new policy which would give the builder more incentives.

The new policy seeks to calculate profits earned by the builders using a formula, which takes into account the relative RR values of the plot as compared to the rest of the markets, in both island city and suburbs.

A builder, not wishing to be named, said, "This is not a rational policy. A builder cannot afford such high premiums that the BMC is proposing. It needs to consider the many hidden costs that we incur while constructing the market."

Dr Ram Barot, chairman of civic improvement committee, said that the committee will hold a special meeting to discuss the policy.