Govt’s DP tweak likely to cost BMC ₹40Kcr for amenities

State is offering additional developmental rights to landowners on ‘net plot’ instead of ‘gross plot’ basis

MUMBAI : The Brihanmumbai Municipal Corporation (BMC) may have to shell out nearly Rs49,000 crore to build public amenities like schools, dispensaries, municipal markets, amenities largely reserved on private land, to implement the Development Plan (2014-34) for the city.

The civic body was hoping it could save nearly ₹40,000 crore of this budget by offering the landowners additional development rights to build these amenities themselves and offer it free of cost to the BMC, under its accommodation reservation policy.

As such the BMC in its draft DP had recommended a policy to incentivise developers for the same by offering development rights on gross plot instead of net plot. However, the state government while finalising the DP tweaked the proposal by offering additional development rights on ‘net plot’ instead of ‘gross plot’. The BMC had recommended that landowners be allowed to use Transferable Development Rights (TDR) on their gross plot.

The BMC had offered incentive TDR of 1 on the gross plot – including the area given up for the public amenity. This provision would be useful for the owners to exploit the plot’s full development potential despite the reservations on it. The state, however, in the final DP tweaked this to TDR of up to 2 but on net plot, land remaining after surrendering the plot for the public amenity.

A senior BMC official said, “We were hoping to save ₹40, 000 crore through successful implementation of the accommodation reservation policy. But the policy can only be effective if the landowners find the incentives lucrative enough to hand over the plot. Sadly, the changes made by the state will impact our policy.”

Civic chief Ajoy Mehta said authorities may take a re-look at this provision. “We will have to wait for the Excluded Parts (EP) of the DCPR to be finalised after the round of suggestions and objections. Following which we could re-look at this provision.”

Bhavesh Sanghrajka, founder and chief managing director of Shraddha Lifespaces, said, “The authorities expect landowners to agree with the slight increase in development rights they have offered for the reserved plots. However, landowners whose plots are not reserved are able to utilise the entire plot potential.” However, urban development department’s principal secretary, Dr Nitin Kareer, said compared to the 1991 DP, “We have upped the TDR proposed on such plots from 1 to 2, so it is bound to be profitable for landowners.”