SRA takes a slew of decisions to expedite redevelopment projects

In a bid to expedite the redevelopment of slums and also to provide for ease of doing business, the Slum Rehabilitation Authority (SRA) has said the concerned department will decide the application and submit their remarks to engineering department within 15 days and after receipt of NOC from all departments, further course of action will be initiated and on receipt of approval to scheme parameters and required concessions.

Further, SRA in a notification said the letter of intent (LOI) and intimation of approval (IOA) will be issued simultaneously and commencement certificate for rehab component will be issued within 7 days from the receipt of application from an architect at deputy chief engineer level.

SRA’s decisions are crucial as there are a total 1,856 slum rehabilitation projects, which were granted a letter of intent for the construction of 5,07,444 housing units, so far 2,09,815 were delivered. However, the construction of 3,97,411 housing units were yet to be completed as they were stuck because of procedural and financial issues.

Further, the SRA said the cost of construction for the purpose of obtaining Annexure III shall be Rs 4.50 lakh per tenement for Mumbai City, suburban District and Thane. All slum rehabilitation schemes both on government and private land, the amount of bank guarantee shall be applicable at the rate of 2% of the construction cost of Rs 4.50 lakh per tenement of rehabilitation component.

The bank guarantee during the defect liability period shall be 1%. Further, the bank guarantee, which is already on record of SRA and revalid shall be resumed to the developer on submission of a fresh bank guarantee. Due to the revision of the bank guarantee, funds available to the developer shall be utilised for speedy implementation of the scheme for rehab components only. The developer shall submit an undertaking cum affidavit to the finance controller for the same.