BALANCED GROWTH

BALANCED GROWTH

Reforms in the township policy will promote planned development of the city

    Living in an integrated township is a growing trend. The new age home buyer is showing a preference for community living that offers a mix of amenities at the doorstep. To make townships more viable, the state government has introduced some reforms in the township policy.
    According to the fresh policy as approved by the Chief Minister, the state government has decided to make it mandatory for special township projects to set aside up to one-fourth of the land for economic activity. The idea is to create new economic centres and better employment opportunities. This will also decongest existing business hubs.
    With more people moving towards the suburbs and opting for township projects, experts feel that new economic centres are the need of the hour. This will open up fresh areas for development. Surabhi Arora, MRICS - Associate Director, Research, Colliers International says, "Integrated townships ease the pressure on existing infrastructure. Reserving land for economic activity would foster the walk-to-work concept. An integrated township offers infrastructure, essential conveniences and security. With commercial development included it makes life easier."
    The extended peripheral areas like Boisar, Virar, Thane, Ghodbunder Road, Ambernath, Badlapur and Panvel are the locations that will get a boost. Deepak Goradia, MD, Dosti Realty Ltd. says, "The township policy was much-awaited. It will promote planned development, especially in the peripheral areas, in the lieu of inherent demand and increasing migration."
    A hike in FSI for township projects has also been proposed. Depending on the size of the plot and its location, an FSI of 1.3-1.7 will be provided under the new policy. Welcoming the initiative, Ramesh Nair, Managing Director - West, Jones Lang LaSalle India says, "Without commercial, no township can be called fully successful. The two most successful townships in India - Hiranandani Garden in Powai and Magarpatta City in Pune both have significant amount of office space within the townships. The government should increase FSI for commercial construction within the townships to make it more viable for the developers. FSI should be at least 2.5 in townships given the increasing land costs across the country."
    Increasing FSI will attract developers to opt for integrated township projects feels Shailesh Puranik, President, MCHI - CREDAI Thane. He explains, "While additional FSI is important, the government should also look in to issues like faster clearance of projects and creation of adequate infrastructure to match the demand. There needs to be a well-defined policy on better financing options for developers taking up township projects. Buyers will be benefited as increase in FSI will create additional supply and may result in availability at cheaper rates."
    The policy also contains a 20% reservation for EWS to be handed over to MHADA to boost affordable housing. Arora points out, "India's urban housing shortage is estimated at 18.78 million with 95 per cent in LIG and EWS categories. The figures show there is a dire need of housing in EWS and LIG category. A reservation for EWS is certainly a welcoming move and would help to improve affordable housing stock."
    Manju Yagnik, Vice Chairperson, Nahar Group says, “This is not only going to benefit the developers and home buyers but will also help the government in achieving its dream of creating real affordable housing stock.”
    However, Mayur Shah, MD, Marathon Realty Ltd. feels that the focus of township projects is to create housing so the reservation for economic activity should be kept optional to make it a viable proposition. "There is already a policy for SEZ and IT Parks. The 20% reservation for affordable housing is an inclusive step and a welcome thing. The extra FSI will act as incentive for the developer to create supporting infrastructure. However, the minimum threshold limit must be brought down to 40 acres instead."
    Summing it up, Shaishav Dharia, Head of Strategy, Lodha Group says, "The State Government has recognised that prices in Mumbai can only come down by creating a significant amount of good quality housing in the suburban areas. The government has introduced a requirement for 20% housing for economically weaker sections and 25% for economic activity, which will lead to job creation. It is a forward looking and balanced policy, which will promote Mumbai's growth."
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BYTE UNDER THE NEW POLICY, A HIKE IN FSI FOR TOWNSHIP PROJECTS HAS ALSO BEEN PROPOSED. DEPENDING ON THE SIZE OF THE PLOT AND ITS LOCATION, AN FSI OF 1.3-1.7 WILL BE PROVIDED