With govt help, self-redevelopment takes off in big way in Mumbai

The Self Group Development Authority, headed by BJP MLC Pravin Darekar, has taken on the responsibility of facilitating funding and streamlining approvals for self-redevelopment projects

MUMBAI: Two decades after the idea was first championed by housing activists like Chandrashekhar Prabhu, self-redevelopment has finally begun to gain momentum in the city. The state government’s Self Group Redevelopment Authority (SGRA), set up in 2025, has received over 1,600 proposals from housing societies seeking to undertake redevelopment on their own.

There are around 13,500 cessed and dilapidated buildings across the city awaiting redevelopment. (Bachchan Kumar/ Hindustan Times)

The concept was first floated by former MHADA chairman and urban planner Chandrashekhar Prabhu with the aim of enabling the redevelopment of over 16,000 (now 13,500) cessed and dilapidated buildings without relying on private builders. However, despite sustained efforts, only a handful of societies managed to execute such projects. Two key challenges hindered progress: lack of access to funds to push proposals through, and the absence of technical expertise required to secure approvals from agencies such as MHADA and the BMC.

The SGRA, headed by BJP MLC Pravin Darekar, has now taken on the responsibility of facilitating funding and streamlining approvals for self-redevelopment projects.

“Isolated efforts by societies, even with support from activists, were often derailed by the nexus between builders and officials,” said a housing department official. “While guidance was available, funding for initial processes such as feasibility reports, proposal submissions, and premium payments remained a major hurdle. The SGRA has empanelled cooperative banks that have started funding these projects. As a government-backed body, it has also made approvals easier.”

However, certain hurdles remain. Restrictions imposed by the RBI on cooperative banks, which limit such funding to 5% of the bank’s total advances, have slowed the process. The state has empanelled the Mumbai Central Cooperative Bank and Thane District Cooperative Bank, but the funding cap remains a concern. “The chief minister has requested the RBI to relax these norms and not classify self-redevelopment as a real estate activity. A decision is expected soon,” the official added.

A standalone redevelopment project typically requires funding of ₹50 to ₹150 crore. With cluster redevelopment now being encouraged, the funding requirement could exceed ₹1,000 crore per project. To address this, the state government is exploring multiple funding avenues, including the National Cooperative Development Corporation (NCDC), Maharashtra State Cooperative Bank, MMRDA, and NABARD. It has also tasked the Maharashtra Institution for Transformation (MITRA) with identifying financing solutions.

“Union cooperation minister Amit Shah has, in principle, agreed to provide ₹1,000 crore through the NCDC,” said Darekar. “While there were initial conditions regarding rural projects, we have requested changes and received a positive response. MITRA is also working to mobilise ₹25,000 crore through financial institutions.”

The SGRA is expected to handhold societies through the entire process, including funding, approvals, and appointment of project management consultants and contractors. The housing department has proposed a budget of ₹2,200 crore for the Authority’s operational costs and project funding support, while ₹500 crore has been proposed as an initial allocation. The final approval is awaited.

Darekar said that 46 proposals had secured loans and 21 had been completed in recent years. “As we facilitate faster approvals and funding, more societies are opting for self-redevelopment,” he said.

The MLC acknowledged that there was resistance within the system. “There is opposition from sections of the bureaucracy and the builder lobby,” he said. “Some proposals have been pending with the urban development department for over eight months. However, we intervene to ensure that projects move forward.”

Politics also allegedly plays a part. Months after the proposal was moved for funding of ₹500 crore to the SGRA, the housing department led by deputy chief minister Eknath Shinde has yet to clear it. In the absence of funding, the Authority has not been able to recruit people and kick off operations. The delay is believed to be because of the tussle between the BJP and Shiv Sena.

Citing examples of successful redevelopment projects, Darekar said, “Residents of Nandadeep in Vile Parle upgraded from homes of 360 sq ft to over 1,400 sq ft through self-redevelopment. Builders were offering them only 700 sq ft. Similarly, in Charkop, residents of Shwetambara constructed 650-sq-ft flats in place of their earlier 400-sq-ft ones. These success stories are encouraging more societies to come forward. The scheme has the potential to transform the city’s skyline and ensure that residents are not forced out due to space constraints.”

Chandrashekhar Prabhu, former MHADA chairman and urban planner, said the concept of self-redevelopment was his brainchild. “It is an alternative to builders and can serve people’s interests by making available more area, better planning and construction, better amenities, maintenance-free living and a surplus that can give a monthly income to society members. I authored the self-redevelopment financing policy for the Mumbai District Cooperative Bank and other banks to fund these projects. For the past 20 years, I have been helping and encouraging housing societies to opt for self-redevelopment. Politicians have woken up now, and I am happy if they are arranging funding.”

Prabhu added that the state government needed to first implement the government resolutions it issued in September 2019 and other announcements made. The GR had assured an additional 10% FSI, a 4% interest subsidy for self-redevelopment projects, one window for all approvals within six months, TDR, all premiums at 50% discount, waiver of land under construction tax, and a discount in GST and stamp duty.