To cash in on market redevelopment in the city, the civic body has now finalised the draft of the revamp policy. Municipal commissioner Subodh Kumar, who was re-drafting the market revamp policy, has finalised it, following which it will be tabled before the civic improvements committee by the end of this month.
“We will discuss the policy at length and then take a decision on it,” said Bhalachandra Shirsat, chairman of the improvements committee.
The Brihanmumbai Municipal Corporation (BMC) has 103 municipal markets, most of which are in a dilapidated condition and need urgent repairs.
Under the existing policy, which was drafted in 2004, the civic policy allows deals on its prime market properties without even calling for bids. A majority of 70% licensees of the markets can appoint a developer and the civic body’s role is limited to verification of consents given by the licensees.
Under the existing policy, the market redevelopment gets an FSI ranging between 2.5 and 1.33, depending on the year it was built. According to it, the Floor Space Index (FSI) has to be shared with the developer, with the sharing ratio between the civic body and the developer being 1:0.6 for markets in the island city and 1:1 in the suburbs, irrespective of the market price; 18 markets have been given out for redevelopment under the current policy.
But as the existing market policy doesn’t help the civic body generate ample revenue, the policy was being re-drafted.
“We will call for bids for redeveloping the markets as it will help the civic body increase revenue generation and also bring in transparency in the system,” said Kumar.
According to the new market policy, the BMC will not have to share the FSI. The civic body will call for tenders under section 33(21) of the Development Control Rules, which allows the BMC to avail an FSI of 4 and offer concession Transfer of Development Rights (TDR) to the developer.
Under the DCR 33(21), the additional FSI got can be used only for creating tenements for the project-affected persons, as rules specify that the additional FSI cannot be exploited commercially. Meanwhile, 25 markets, including the Crawford Market for which the civic body has issued annexure-II (eligibility list) will be redeveloped by the developer bought by the licensees but the FSI sharing will be inversely proportionate to the market value of the plot.