CM’s new market-savvy scheme overshadows SRD

But, the new scheme has much brighter prospects. Especially because the sops offered by the government to developers under this scheme are identical to those offered under the SRD.

Sources in real estate market and political observers are unanimous that the scheme to rebuild old and dilapidated structures has everything that the SRD lacked – like profits for the developers. They point out that the SRD failed because there was little money in it for the builders. Though the government had offered extra FSI to developers, it would have been extremely difficult for them to sell flats to a upper-middle-class customer at these sites (where the slums are located) – essentially downmarket addresses.

For instance, who would want to buy a house in Dharavi. As a builder said: “I still have not come across a client who would not have any problems with having a slum dweller as a neighbour. And if I can’t sell my share of flats at market prices, I will only lose money.”

On the contrary, the sites the new scheme would offer are likely to be much more lucrative. “Most of the dilapidated buildings the CM is referring to are chawls. And a majority of them are in Central Mumbai. Now, tell me who would not want to develop a property there,” said another builder.

Also, organising residents of a chawl is much easier than a slum. “They have proof of residence unlike residents of a slum where it is difficult to secure proof of permanent residence. The new scheme is much more feasible,” an official said.

While Chief Minister Manohar Joshi has maintained that the new scheme would not adversely affect the mass housing plan, the views of his high-profile Housing Minister, Sureshdada Jain, are more in tune with the market.

“Certainly, the scheme for residents of old and dilapidated buildings will receive more response since it’s more lucrative compared to the mass-housing scheme for slumdwellers,” Jain told Express Newsline. Coming from a man who was specially inducted into the cabinet by Thackeray to revive the SRD scheme, the statement does hold some weight. Jain says he is more interested in building housing stock in the metropolis. “I am more concerned about building up the housing stock in the metropolis – whether it is through the reconstruction of old and dilapidated buildings or through the much publicised housing scheme for the slumdwellers,” he says.

However, for obvious reason he is not willing to write off SRD completely.

“One major achievement of the SRD is that it has pushed down real estate prices. Now, fresh plans have been drawn and we will be able to provide at least one lakh houses to slumdwellers by the end of 1998,” he says.But some of his cabinet colleagues are not very confident. “When you are not able to do something well, it is suicidal to let something distract you from the job on hand. Joshi should have launched the scheme for residents of old and dilapidated buildings only after our government had achieved some degree of success in the SRD scheme,” a senior Shiv Sena minister said.

“If we are not able to fulfill the dream of Bal Thackeray, the architect of the Sena-BJP alliance, then what’s the point in declaring such populist schemes,” another minister added.

A senior official admitted that the scheme for old and dilapidated buildings would have its impact on the SRD scheme. “Since all the 20,000 old and dilapidated buildings are in the island city, builders would be more inclined to develop these. Obviously, the SRD scheme will get neglected,” the official said. As per official records, the response to the SRD scheme has been poor. “We have not moved even an inch. We have provided less than 2,000 houses after the alliance government took over. Whatever little work has been done was sanctioned by the erstwhile Congress government headed by Sharad Pawar,” the official said.