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Slum schemes: State to compete with pvt builders

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The  Times of India               29.10.2010

Slum schemes: State to compete with pvt builders

MUMBAI: In a bid to break the monopoly of private builders in Slum Rehab Schemes (SRS), the state government has decided to enter the fray under the Basic Services for the Urban Poor (BSUP) scheme of the central government.

For slum schemes, the state allows a floor space index (FSI) of 2.5. "Every slumdweller is entitled to a self-contained 300 sq ft (269 sq ft carpet area) flat. The builder gets an FSI of 1 as incentive which can be commercially exploited. On an average , the profit margin in such schemes is 36%. The government clearly wants a slice of the profitable slum housing market ," an official said.

Sachin Ahir, minister of state for housing, said the scheme would be implemented by the Maharashtra Housing Area Development Authority (Mhada) with the consent of the BMC. "We will take up densely populated slums which no private developer is willing to touch. We will also take up those projects where 70% of slumdwellers give their consent to Mhada to implement the scheme," he said.

"Though the BSUP scheme was launched under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in 2006 it could not be implemented in Mumbai and Navi Mumbai because the builders' lobby opposed it. The scheme has received a tremendous response in Thane, Pune, Pimpri-Chinchwad and Nanded where it has been implemented," the official added.

Last month the state government announced that the Cidco would implement the scheme in Navi Mumbai. Under the scheme, the central government provides for 40% of the construction cost, the state government 30%, the local self-government 10% and the beneficiaries have to contribute 10%.

Mumbai has the largest slum population in the country. Nearly 50% of its population resides in slums. The government has identified 2,000 slums across the city. Narmada Bachao Andolan leader Medha Patkar who has taken up the cause of slumdwellers in the city has suggested the scheme be implemnted in the Mankhurd.