Three years after its announcement too, the redevelopment of Maharashtra Housing and Area Development Authority (Mhada) colonies is still stuck.
While chief minister Prithviraj Chavan had, four months ago, announced several incentives to make the project lucrative, the final notification on it is yet to be issued.
Chavan had promised a hike in Floor Space Index (FSI) to 3 from 2.5 with an additional area of 35% to tenants.
If the society opted for a cluster model, an additional incentive of 15-45% was assured.
In cases where Mhada is the landlord, the state has devised a scheme where it gets lower share in non-prime areas and higher share in prime ones.
Though the draft notification was opened for suggestions and objections in May, the final draft is yet to come.
Naresh Chheda, managing director, Happy Home, said, “There is no clarity on the rules. We cannot submit plans till the new notification is brought into effect.”
According to Shadaab Patel, chairman and managing director, Platinum Constructions Private Limited, they need more incentives.
“The tenants demand more area with modern amenities. In the meanwhile, there has been a massive hike in construction costs and taxes and premiums to be paid to the government. So, the state should come out with the notification at the earliest so that we know what to expect,” he said.
“We are in the final stages of drafting the new notification. It will be issued shortly,” said Niranjan Sudhanshu, chief officer, Mhada (Mumbai Board).
Sudhanshu said that the substantial drop in the number of revamp proposals after 2010 forced the state to bring in new amendments.
Mhada has 3,401 buildings in its 56 huge colonies across the city.
For years, builders have been paying a measly premium to bag development rights.
In 2011, faced with the depleting land bank, the Mhada board decided to compulsorily procure houses instead of premium as compensation.
This move has caused massive slowdown in the revamp process.