What is 33(11) of DCPR 2034

"Clubbing of schemes" under Regulation 33(11) of DCPR 2034 is a crucial provision that allows developers to consolidate multiple plots or slum rehabilitation schemes to enhance the viability and efficiency of their projects, particularly for building Permanent Transit Camp (PTC) tenements.

Here's a detailed explanation:

What is Clubbing?

In the context of 33(11) of DCPR 2034, "clubbing" refers to the ability of a developer to combine:

* Multiple plots: This can involve plots belonging to single or multiple owners.

* Different types of schemes: Most commonly, it involves clubbing a Slum Rehabilitation Scheme (SRS) with a society redevelopment project (e.g., MHADA layout redevelopment under 33(11)) or even an open plot development.

Why is Clubbing Allowed? (The Purpose)

The primary purpose of allowing clubbing under 33(11) is to:

* Increase Project Viability: By combining plots, developers can create a larger project area, which often translates to a higher overall FSI entitlement. This makes the project more financially attractive, as they have more saleable area to generate revenue.

* Optimize Land Use: It allows for more efficient utilization of fragmented or irregularly shaped plots, leading to better planning and design.

* Facilitate PTC Construction: This is a key driver. Developers are incentivized to build PTC tenements (for slum dwellers or project-affected persons) by being allowed to shift the "sale component" (the area they can sell in the open market) and even the "base FSI" from one plot to another within the clubbed scheme. This means they can potentially build the PTCs on one part of the clubbed land and concentrate their saleable buildings on another, more commercially viable, part.

* Streamline Approvals: For the authorities, it can simplify the approval process by dealing with a single, consolidated scheme rather than multiple small, individual projects.

How Does it Work? (Key Conditions)

For clubbing to be allowed, certain conditions typically apply:

* Agreement of All Right Holders: If multiple plots with different owners are clubbed, all right holders (owners, societies, slum dwellers, etc.) of these plots must agree and make a joint application.

* Independent Plot/Building for AH/R&R Component: The clubbing should ideally lead to an independent plot, building, or wing dedicated to the Affordable Housing (AH) or Rehabilitation & Resettlement (R&R) component (i.e., the PTC tenements). This ensures that the housing for the rehabilitated population is clearly demarcated and handed over to the planning authority.

* Geographical Proximity: Such clubbing is generally permitted within:

* The same ward.

* An adjoining ward.

* Within a specified distance (e.g., 5 km) of the project.

* Unearned Income Premium: The developer is usually required to pay a premium (often a percentage, like 40%) of the difference in the sale value of the shifted built-up area of the AH/R&R component, as per the Annual Statement of Rates (ASR), to the authority. This is considered an "unearned income" for the state due to the flexibility provided.

* Location of PTCs: The PTC tenements can be built on the same plot, in an adjoining ward, or within a specified radius (e.g., 5 km) from the original project site.

Benefits of Clubbing for Developers:

* Increased FSI Utilization: Developers can maximize the FSI across their combined land holdings, especially if one plot has a higher FSI potential due to road width or other factors, and another needs rehabilitation.

* Economies of Scale: Larger projects can benefit from economies of scale in terms of construction costs, procurement, and project management.

* Better Project Planning: Clubbing allows for more comprehensive and integrated planning, potentially leading to better infrastructure and amenities for the entire development.

* Enhanced Financial Returns: By optimizing the placement of the saleable component, developers can achieve higher revenue and profitability.

Considerations and Challenges:

* Complexity: Clubbing schemes can introduce legal and logistical complexities due to multiple land titles, varied ownership, and different types of occupants (slum dwellers, society members, etc.).

* Timelines: Obtaining all necessary consents and approvals for clubbed schemes can be a time-consuming process.

* Infrastructure Impact: The increased density from clubbed projects needs careful planning to ensure existing and proposed infrastructure (roads, water, sewerage, etc.) can support it.

In summary, clubbing of schemes under 33(11) of DCPR 2034 is a strategic provision that enables larger-scale redevelopment initiatives in Mumbai by allowing developers to combine different plots and types of projects. It serves as a strong incentive for developers to participate in the construction of much-needed Permanent Transit Camp tenements, thereby facilitating slum rehabilitation and the redevelopment of old MHADA layouts, while also allowing them to realize greater commercial potential from their overall land holdings.

Shrinivas Nadgauda

Director

Disclaimer

Information is based on research of web sites and of dcpr of mcgm. Errors and omissions are expected. This is only for general information and understanding please consult architect or bmc for actual information