State to look at auction for cluster redevelopment
The state government is planning radical changes to the cluster redevelopment policy, which is aimed at rebuilding old Mumbai.mumbai Updated: Apr 18, 2011 01:33 IST
The state government is planning radical changes to the cluster redevelopment policy, which is aimed at rebuilding old Mumbai.
Rather than allowing developers to enter into private contracts with the residents, Chief Minister Prithviraj Chavan plans to auction cluster redevelopment rights among competing builders.
This change is aimed at rooting out two key problems in the existing policy — irregularities by builders, and delays in implementation.
Chavan, who had put the scheme on hold earlier this month, has asked his administration to work out the details for such an amendment to the norms. As per Chavan’s plan, the government would invite bids from developers for each cluster where redevelopment had been sanctioned.
“Instead of the developer approaching residents and trying to get their consent, the government would invite developers to bid for the cluster,” said Chavan. “Whoever offers better options for residents and a greater premium to the government could get the right to develop that cluster.”
Though this means the residents would not be able to choose their developer, the proposed norms would ensure that they were not defrauded, since the builder would have to answer to the government if he did not provide the promised flats and amenities.
The plan would also help generate revenue for the government.
“By auctioning 3G spectrum, which was a public resource, the Centre got considerable revenue,” said Chavan. “Similarly, land in Mumbai is a public resource. So a part of the profit coming from its development should be submitted to public funds.”