Mumbai’s skyline set to soar?

If everything goes as planned the state government may soon issue a notification allowing taller buildings in areas around Mumbai airport which currently fall under the funnel zones At present areas like Vile Parle Santacruz and Kurla have height restrictions due to their proximity to the airportrsquos flight landing and takeoff pathOn Wednesday March 26 Deputy Chief Minister Eknath Shinde who also holds the portfolio of Urban Development Housing and Public Works Public Enterprises announced in the Assembly an amendment to the DCPR Development Control and Promotion Rules ndash 2034 This amendment will lift height restrictions in funnel zones allowing redevelopmentThough an official government notification is awaited some experts believe that even if the state government announces the relaxation a No Objection Certificate NOC from the Civil Aviation Ministry and DGCA which fall under the Central government will be both inevitable and bindingAdvocate Shreeprasad Parab Expert Director State Housing FederationSince the Assembly announcement there has been a wave of excitement among residents of these areas However some housing experts caution that it is better to wait and watch as the announcement could be a political move ahead of the upcoming BMC electionsBut what does this announcement actually mean to decode the same midday reached out to Advocate Shreeprasad Parab expert director Maharashtra State Housing FederationWhat is a Funnel ZoneA funnel zone is an area near an airport where planes take off and land Because of this there are strict height restrictions on buildings to ensure flight safetyRedevelopment challengesIn localities such as Santacruz Vile Parle and Kurla many old buildings require redevelopment However due to funnel zone height restrictions developers cannot construct taller buildings making redevelopment financially unviable Since the entire available Floor Space Index FSI cannot be utilised many buildings remain in a deteriorated state forcing residents to live in unsafe conditionsWhat is redevelopmentRedevelopment involves demolishing old or dilapidated structures and constructing new buildings on the same land This can be done by private developers or through selfredevelopment utilising FSI or Transferable Development Rights TDR as per the Development Control Regulations DCR Currently Mumbairsquos DCPR2034 requires an NOC from Civil Aviation Authorities for any construction in funnel zones due to height restrictions limiting the use of FSI and TDRDeputy CMrsquos announcementOn March 26 Deputy CM Eknath Shinde announced a special concession scheme for redevelopment in funnel zones The scheme allows the transfer of development potential in the form of TDR to other projects enabling the sale of unutilised FSI It also provides concessions on open space deficiency premiums and exempts areas like staircases and lifts from FSI calculationsWhat is TDRTDR Transfer of Development Rights allows property owners to transfer or sell unutilised FSI For example if a plot in Vile Parle East has the potential for a 10floor building but height restrictions cap it at six floors the remaining four floorsrsquo FSI can be transferred or sold as TDR Post recent announcement of the Dy CM and once implemented the developerowner of the plot can utilise the unused FSI of four floors in the form Development Right Certificate DRC which mentions the FSI credit or unused in the form of TDR thereby transferring or selling the Development Right from one plot to another plot or to anyone who is intending to buy such unused FSI for construction as per the DCPR provisionsHow is TDR ValuedTDR values range from 65 per cent to 85 per cent of the prevailing market rate determined by demand and supply It can be sold to any buyer willing to pay the required amount TDR functions like a financial asset that can be liquidated when neededDGCA approval neededIf a significant portion of flights shift to the Navi Mumbai airport air traffic patterns may change leading to a review of height restrictions However any modification in height limits will require1 DGCA aviation authority approval2 Revised obstacle limitation charts OLC3 Coordination between urban planning aviation and local government bodiesOnce the Navi Mumbai airport is fully operational and air traffic shifts significantly there is a possibility of relaxed height regulationsFuture of redevelopmentHousing societies currently unable to proceed with redevelopment due to height restrictions may after policy approval utilise available FSI within the restricted height limits while selling the remaining development potential as TDR in the open market If further height relaxations occur in the future the unsold FSI can be used for the same project making redevelopment more viableSelfredevelopmentMumbai faces a severe affordable housing crisis with skyrocketing real estate prices forcing people out of their communities Selfredevelopment offers housing societies an alternative to traditional builderled redevelopment allowing them to modernise their homes while retaining full control over the project Mar 26Day announcement was made in AssemblyAdvantages of selfredevelopment Higher carpet area for members Better amenities and infrastructure No builder interference ndash full control with society members Higher profits for members as additional flats can be sold by the society Reduced delays compared to builderled redevelopment Government support and loan availabilityIf selfredevelopment is implemented effectively it can lead to more sustainable and affordable housing projects benefiting both existing residents and potential homebuyersSuggestions by state federationThe Federation has welcomed the state governmentrsquos decision to allow TDR sales and has put forward additional recommendations including Implementing a singlewindow system for approvals within 30 minutes including RERA registration for projects Realtime monitoring of projects using cameras with daily progress updates on an official portal to prevent fraud and disputes Setting up demonstration and educational studios to train societies in green and sustainable construction Directing NCDC or MCDC to provide seed funding for selfredevelopment projects