The realty sector is down, but certainly not out in the present slow down. Maharashtra government asks the realty players not to be impatient and assures them all the necessary help. In an interview with Sanjay Jog, the minister of state for housing Sachin Ahir explains government's views while underlining the importance of transparency.
Is government convinced that the slowdown has adversely impacted the realty sector in Mumbai?
The slowdown is there and it is also visible in the realty sector. Due to the current economic conditions, a large number of investors are backing out from investment plans, while home-buyers have clearly adopted a wait-and-watch policy in anticipation of a price correction. Besides, there is an issue of expediting various approvals following the amendments to the Development Control Regulations. The government and concerned agencies have already taken corrective steps so that projects take off. I sincerely feel that the builders and developments should be patient, as the present situation will certainly change.
Can you elaborate on the proposed Dharavi sector-5 redevelopment?
Recently, chief minister Prithviraj Chavan undertook a thorough review of the project and directed Maharashtra Housing & Area Development Authority (Mhada) to issue tenders at the earliest. All the necessary clearances have been accorded and the tenders will be floated shortly. The project, which will be developed by Mhada by appointing contractors, envisages construction of a 22-storey building during the first phase and it will provide 300-400 sq ft to the existing slum dwellers. They will be provided all the necessary amenities during redevelopment and the entire cost will be borne by Mhada. I want to reiterate that the government is quite keen to showcase Dharavi redevelopment and send a clear message that its undertaking is quite capable of carrying out such key projects in the city.
In fact the government wants to show case the redevelopment of Dharavi sector-5 and try to regain the faith and confidence of all stakeholders. All the necessary clearances have been accorded so that soon the tenders will be floated.
What is the present status of redevelopment of old and dilapidated buildings in Mumbai?
All the necessary clearances under Coastal Regulation Zone are in place. The government is keen to redevelop these buildings by adopting cluster approach under 33 (99) of the Development Control Regulations. The government has already taken decision to provide 4 floor space index (FSI) for development of 13,000 old and dilapidated buildings. Private sector players can form JVs with Mhada.
But the realty sector has cited policy paralysis and a feeling of mistrust at the government level. What is your comment?
I want to make it clear that there is no policy paralysis and mistrust. What the government has tried to do is to bring in transparency and sanity. The government has also made series of attempts to change the perception of the unholy nexus between the political class and realty players, which is instrumental in deciding policy decisions. There are a few elements but the entire realty sector cannot be blamed. Ultimately, the government is the one which takes key policy decisions. I want to assure the builders that the government will provide all the necessary cooperation, but with transparency, which is of utmost importance.
I want to make it clear that there are ample business opportunities for realty players in Mumbai. Make a city within the city as the realty players can tap opportunities in the redevelopment and rehabilitation of slums, and old and dilapidated buildings. The government is not against builders and developers. Let us move together and cooperate.
Despite loud claims, there is very slow progress on mass housing in the state...
Mass housing projects have been launched in Vasai, Virar and Thane. Mhada has formed a JV with Nagpur Improvement Trust and has bought lands in Pimpri-Chinchwad and Aurangabad for creating affordable houses.
Besides, the government and Mhada will provide necessary funds for slum rehabilitation under the Jawahalal Nehru Urban Renewal Mission. Nearly 5,000 houses will be built in Pimpri-Chinchwad, and 3,000 in Kalyan.
Is the government serious about setting up a regulator for the housing sector?
Had it not been so, then the government would not have tabled the Maharashtra Housing (Regulation and Development) Bill in the state legislature. It has been referred to the joint select committee of the legislature which is discussing whole lot of issues. The committee has received a record 3,520 suggestions and objections. They are relating to car parking space and whether the provision of criminal proceedings against builders will remain or not after the passage of the bill. The government is quite keen for effective and balance regulatory authority for the housing sector. We are trying best to table the bill in the ensuing monsoon session once the joint select committee gives its recommendations.