6 October 2014 – Slum rehabilitation projects in coastal zones in Mumbai, the country’s prime real estate market, are on the brink of becoming fully private. This change would replace the current requirement of Public-Private Partnership (PPP) models, where government entities must hold a 51% stake.
The Ministry of Environment and Forests (MOEF) is evaluating a proposal to allow 100% private schemes for slum rehabilitation in Coastal Regulation Zone (CRZ) areas. The Bombay High Court has directed the ministry to speed up the process and reach a decision by December 31.
The Maharashtra government has urged the removal of the 51-49% PPP ratio, citing the lack of financially viable proposals under the current policy. The affidavit filed by MOEF confirms that the scheme is under consideration, following the state’s request for this policy change.
The affidavit also responds to a writ petition challenging the constitutional validity of a clause in the 2011 CRZ Notification, which mandates PPPs for slum redevelopment with the majority share held by the government.
The modification would enable private developers to undertake slum rehabilitation in CRZ-II areas without adhering to the PPP model, which has reportedly caused delays in over 250 slum pockets in Mumbai. Removing this clause could streamline redevelopment by eliminating procedural hurdles and giving developers greater autonomy.
The CRZ Notification of 2011 designates coastal stretches within 500 meters of the High Tide Line, areas between the Low Tide Line and High Tide Line, and water portions up to 12 nautical miles as Coastal Regulation Zones. Additionally, creeks, backwaters, and tidal areas are included under these regulations.
According to the Slum Rehabilitation Authority, no developers have initiated rehabilitation projects under the existing rules in the past three years. The authority’s October 2013 request to the state government prompted this policy reconsideration, aiming to attract private investment and expedite redevelopment.
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Aditya Pratap is a practicing lawyer and founder of Aditya Pratap Law Offices based in Mumbai. An alumnus of NALSAR University of Law, Hyderabad, he has over 11 years of experience and has handled numerous cases of public and private significance. For more insights, you can visit his website: adityapratp.in. Watch him in TV interviews.