BMC approves projects worth Rs 5,122 crore with the help of credit notes to builders
The BMC had allocated 5,550 homes in Mahul to the PAP, but citizens refused to stay there citing pollution and health hazards. File pic/Sayyed Sameer Abedi
The Brihanmumbai Municipal Corporation (BMC) has approved the construction of 9,500 homes of 300 sq. feet each for project affected people (PAP) in Mulund and Bhandup, by giving credit notes (developers can use them to pay municipal taxes and premiums to the BMC) and transfer development rights (TDR) worth Rs 5,122 crore to builders. The BMC had earlier decided to pay Rs 1,610 crore to build 4,000 houses in Chembur and 108 in Dahisar in September but the Chembur project has still not progressed. While the Congress opposed the move to give a hefty amount to builders, this time the Bharatiya Janata Party (BJP) had no objections.
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The civic body does not have enough houses to shift PAP. The BMC had initiated a plan to build 5,000 houses in each of the seven zones of the city for them. The plan was to build 35,000 such houses in the city and BMC had invited expressions of interest in 2019 in lieu of land and construction TDR, but it did not yield any result. In a bid to complete its pending infrastructure projects, the BMC decided to pay an additional R1,610 crore to build 4,108 houses, out of which construction on 4,000 was to start in Chembur in September. But in the current proposal in the improvement committee, the administration said that the Chembur project is still in primary stage and going forward at snail’s speed.
The BMC has now approved other projects in Mulund East and Bhandup West. As per the proposal passed in the improvement committee on Friday, M/S Swas Construction company will construct 7,439 houses at Rs 58.87 lakh each including the cost of the land in Mulund. The total cost of the project is Rs 4,380 crore. M/S New World Landmark LLP will construct 1,903 houses at Rs 61.50 lakh each at a total cost of Rs 1,175 crore in Bhandup. The BMC will give TDR and credit notes of Rs 2,827 crore for the Mulund project while TDR and credit notes worth Rs 742 crore will be given for the Bhandup project.
“The BMC will pay Rs 38 lakh and Rs 39 lakh per flat in addition to the land price. In Aashray Yojana for Solid Waste Management Department, the cost of a flat is Rs 22 lakh. Why is there so much difference? Why is the price as per the market rate? Despite opposition from the Congress corporators, the proposal was passed without discussion,” said Ravi Raja, leader of the opposition.
“There was hardly any response as developers said it wouldn’t be feasible for them and asked for additional cost. It has been decided that credit notes will be given instead of directly transferring money. The builders can use them to pay taxes or premiums in future. The credit notes are transferable, so the builders will get working capital to complete the projects,” said a BMC official.
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