The construction industry has had mixed reactions to the state government’s housing reforms announced on Wednesday.
The state had given incentives to builders in the form of additional Floor Space Index (FSI) for cluster development and redevelopment of old dilapidated buildings.
Sunil Mantri, president-elect, Maharashtra Chambers of Housing Industry and managing director, Mantri Realty Private Limited, said he was opposed the provision of a minimum of 1 acre for cluster development and consent of 70 per cent of tenants in case of redevelopment.
“Considering the paucity of land in the city, such minimum requirement would only result in delay in projects. The consent issue will lead to bargaining by tenants,” said Mantri.
He said the state should bring a law to demolish all dilapidated buildings.
Yeshwant Dalal, president of Estate Agents’ Association of India, said the state should take up a comprehensive plan instead of bits and pieces.
“The time has come for the holistic redevelopment of the entire area. Most pipelines and storm water drains have outlived their utility and we should plan for the entire region,” said Dalal.
In cluster development, the developers redevelop buildings and create a township. The corresponding infrastructure is also developed.
However, many developers called the state government’s scheme as fabulous.
“The minimum area clause is necessary as it will only serve to create more open spaces in the city,” said Pujit Aggarwal, managing director, Orbit Corporation Limited, and also spokesperson, Property Redevelopers Association.
Anand Gupta, general secretary, Builders’ Association of India, welcomed the additional area for the tenants. “Many tenants will now opt for redevelopment,” said Gupta.