The Maharashtra government has taken a significant step to boost self-redevelopment projects in the state. A government-appointed panel has recommended that housing societies opting for self-redevelopment be given an additional 10% carpet area for each member’s flat. This move is aimed at encouraging more societies to take charge of their own redevelopment, ensuring bigger living spaces and long-term benefits for residents.

What is Self-Redevelopment?

In self-redevelopment, cooperative housing societies come together to redevelop their ageing or dilapidated buildings without the involvement of private builders. The members themselves become promoters, manage all permissions, appoint contractors, and oversee the quality and timelines of the project. This practice helps residents retain control and ensures that profits and benefits stay within the society rather than going to a developer.

Highlights of the Proposal

The panel, chaired by BJP MLC Pravin Darekar, submitted its suggestions to Chief Minister Devendra Fadnavis. The main highlight is an incentive of 10% extra carpet area for each society member if they undertake self-redevelopment. This extra area will be given above what members were originally entitled to, inclusive of balconies, and will be provided without any extra premium payable to the state government.

The proposed benefit is only for the accommodation of existing members and cannot be sold or transferred to outsiders. It is also suggested that this incentive will be over and above the permissible Floor Space Index (FSI) limits to further encourage societies.

Apart from individual societies, the committee has recommended that smaller housing societies can participate in cluster redevelopment together. The minimum area required for such cluster self-redevelopment projects has been reduced from 4,000 sq m to 2,000 sq m. This change is expected to help smaller societies, who otherwise could not meet higher area requirements, join hands for development, making larger projects more feasible and beneficial for all residents involved.

The panel put forward several other reforms, like faster single-window clearances for redevelopment projects, eligibility for buildings 30 years or older, and easier access to institutional finance. Tax concessions and possible interest relief for loans taken by societies have also been recommended. These suggestions aim to remove existing hurdles and make the self-redevelopment process smoother and safer for societies.

Who Will Benefit?

This new proposal is particularly relevant for Mumbai and other major cities in Maharashtra, where thousands of old and ageing cooperative housing societies are in need of redevelopment. By taking up self-redevelopment, society members get not only extra carpet area, but also higher value for their property and better control over construction quality and deadlines. It also reduces delays and risk of misappropriation, which have been concerns in builder-driven projects.

For cluster projects, each resident could get at least 376.73 sq ft of living space, according to the recommendations. Commercial units within societies and slum dwellers in such projects would also be accommodated suitably.

Government’s Vision

The government looks at these proposals as a way to accelerate the many pending housing projects across the state and help people fulfil their dream of bigger, modern homes. The report by the Darekar panel is with the government, and a final cabinet decision is awaited. Once approved, the new scheme is expected to give a big boost to Maharashtra’s redevelopment and housing sector.

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