Recently, after a controversy, the BMC had cut down its plan to construct 12,000 units for PAPs across Mumbai by giving out credit notes instead of money to contractors. The BMC has now decided to construct only 4,000 PAP units in Chandivali 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 Transfer of Development Rights and construction TDR. The BMC won’t have to shell out any money for the project.
The BMC said in a statement that various state agencies like SRA, Mhada and MMDRA had given the BMC 2,113 PAP units since 2015. The BMC currently needs 36,229 units to house PAPs.
The BMC said only 2,000 PAP units can be constructed on its own plots. “Out of these 3-4 plots, 700 PAP tenements can be constructed on the BMC plot at Worli, for which tenders have been invited. Similarly, the tendering process for Dahisar and Bhandup for 1,000 PAP tenements has started. Thus BMC can construct only 2,000 tenements on own plots,” the BMC said.
The BMC said that facing a cash crunch, it had decided to go cashless for its close-to-Rs 9,000 crore mega project to construct housing for PAPs. For the first time, BMC was to give out credit notes to contractors who were to construct 12,000 units for housing PAPs. Out of the Rs 9,000 crore, around Rs 6,000 crore was to be paid through credit notes, while the rest would have been TDR. As per the plan, land owners who own land parcels reserved for PAPs or housing for the dishoused had to come forward and offer their lands to the BMC.
The BMC said it had also asked the state urban development department about its credit note scheme and pointed out MMDRA had already implemented a similar scheme.
“We had received applications for construction of PAP units at 7 zones in Mumbai (24,000 units). One zone was dropped and proposals for the rest were examined. However, since rates were exorbitant, the UD department was referred, which stated the procedure was appropriate. We conducted a rate analysis by verifying the actual agreement value of transactions in these areas from the Inspector General of Registration and Stamps (IGR). We found the rates were only feasible for one zone in Chandivali for 4,000 units,” said a civic official.