BMC Hit by Housing Shortage to Give Cash Compensation

With the BMC facing a massive shortage of homes for housing project-affected persons (PAPs), it has decided, for the time being, to give out cash compensation to them instead of flats so that they make way for infrastructure projects. The BMC requires around 36,000 units to house PAP families. Its proposal is to give cash, based on market rates of probable flats, to tenants on BMC land who are hit by projects and even to affected slum dwellers.  “But the proposal will not be for all PAPs. This will only be for extremely vital projects. The projects that are categorised as extremely vital will be decided by the municipal commissioner,” said a senior civic official. He said the BMC will arrive at a total of around 50,000 PAP families over the next two years. As part of the cash compensation scheme, those PAPs living in structures before 1964, known as tolerated structures, will be given compensation based on market rates. This will be one point two times the ready reckoner rates of the area. However, for slums it will be 75% of ready reckoner rates or Rs 30 lakh, whichever is higher. After a major controversy, the BMC recently cut down on its plan to construct 12,000 units for PAPs across Mumbai by giving out credit notes instead of money to contractors. The civic body will now construct only 4,000 PAP units in Chandivli by ‘cashless’ means, which will cost it around Rs 2,498 crore. This amount will be paid to a private builder by way of credit notes, land TDR (transfer of development rights) and construction TDR. The BMC won’t have to shell out any money for the project. In April, municipal commissioner Iqbal Chahal had punched holes in the BMC’s controversial plan to give out credit notes instead of money to contractors to construct housing units for PAPs. BMC officials said they have allotted 24,493 units to PAP families in the recent past. Soon, they are expecting 819 units in Chembur. As many as 3,828 units in Mahul are not being allotted to new PAPs due to court orders. “The timelines of major projects have been hit due to non-availability of PAP housing. If PAP housing units are not constructed, the city’s infrastructure development will slow down and come to a halt. We will get PAP units from Mhada and SRA, but it won’t be enough and the BMC will have to find out more ways to generate PAP housing units,” the official said.