Now, contractors give it back to BMC : DNA

Conditions like dynamic security deposit, joint venture clause and internal nexus cited as reason for shoddy work

Why do the same contractors bag civic contracts despite a track record of shoddy work? Why do new players and big infrastructure firms stay away from BMC contracts? How do contractors manage to cheat the BMC time and again and get away with it? Answers to all these questions have been given, not by any think tank or consultant, but by contractors themselves.

A section of disgruntled contractors has written to municipal commissioner Ajoy Mehta, listing close to two dozen reasons why the Brihanmumbai Municipal Corporation (BMC) is struggling with giving work to top firms and ending up getting shoddy and substandard work. The group of contractors has demanded that the BMC set up a new tendering department and guidelines, so that there is no discrepancy between tenders floated by different departments within BMC.

The other suggestion given by the contractors is that the BMC get its own estimates right. “There have been several occasions where contractors have bid way above or below estimates. This is because the estimates are wrong. The BMC has created such tender conditions that no new player can participate. Forget big firms, even smaller players are being kept out,” said one of the contractors, who did not wish to be named.

Several conditions — having a dynamic security deposit for contracts, qualification criteria, exorbitant bank guarantee clauses, compulsion of having cement plants within the city, and bizarre joint venture clauses — have been listed in the memorandum submitted to Mehta. The memorandum has been signed by around 12 contractors.

In 2012, then municipal commissioner Sitaram Kunte had tried to attract bigger companies to execute road works by making changes in the tender conditions. The BMC had even clubbed several road contracts. The logic was that if big companies stepped in, the quality of roads will automatically improve. However, the plan failed and the same old contractors bagged the works. RPS Infraprojects, KR Construction, Jay Kumar, Relcon Infraprojects, RK Madhani & Co. and Mahavir Infrastructure among others bag BMC contracts every year.

“The BMC is being looted by the cartel of contractors. It must permanently blacklist them for shoddy work. There should be fair competition, but there is a big nexus. The roads and stormwater drains departments are the worst-affected by this nexus,” said Congress legislator Aslam Shaikh. Shaikh had recently exposed a cartel of road contractors, who had first bid for contracts but then stepped away to ensure the highest bidder got work instead of the lowest.

According to contractors, the conditions set by the BMC are not practical. These include the contractor having his own asphalt plant within city limits, the asphalt plant having at least eight boilers, the contractor having his own paving machine, the defect liability period, joint ventures being allowed only in certain contracts above Rs150 crore, and allowing sub-contracting of work.

“Following the complaints, Mehta had asked the roads department to review tender conditions. Clauses like having ready mix cement plants in the city have already been done away with,” said a senior civic official.

Save Aarey group seeks infra to make city’s green lung a cycle-friendly zone : DNA

The Save Aarey Community has submitted a proposal to authourities for making Aarey Colony into a cycle-friendly zone by creating necessary infrastructure. This, they say, will not only serve cycling enthusiasts for recreation activities but also attract a major chunk of office goers working either in Powai, Goregaon or even SEEPZ by facilitating cycling to work.

Manish Gadia, a cycling enthusiast who has ideated this project, said that they are not demanding laying of a dedicated cycle track but instead proposing using the existing roads by upgrading them slightly to make cycling comfortable and safe for riders.

“Approximately, 25,000 vehicles use the eight kilometre Goregaon to Powai Aarey-Mulund Road, which passes through Aarey Colony. Many are people working either in Powai or in the Goregaon-Malad belt. Our proposal entails capturing these segments and giving them an option to use cycles at least to commute just on the Aarey stretch,” said Gadia. He added that under this project they have also proposed a manned and protected cycle stand or a rent-cycle scheme on both Goregaon and Powai-end as also one at the Marol end of the Aarey road.

According to the proposal, the internal roads with low traffic density have been chosen as the cycling route. “The proposed route starts from the first right turn one takes after entering Aarey Colony from the Western Express Highway side that leads to New Zealand hostel and thereafter winds up on the main Aarey road near the lane to VIP bungalow, which will help the cyclists complete around 75 per cent of the journey without having to ride on the main road,” shared Gadia.

Save Aarey Community has already met Gajanan Raut, chief executive officer of Aarey Dairy Development Board and submitted the proposal. They also explained to him how they can outsource the cycle rental, which can be made part of a Corporate Social Responsibility (CSR). They now plan to meet senior BMC officials.

Eugene Das, founder of ‘We Will Help Charitable Foundation’, which has been working in Aarey with the locals and is part of the Save Aarey Community, said that the cycling initiative could also help create an employment opportunity for the locals.

“Apart from those who would be cycling to work, a substantial number of people would want to cycle for recreation or fitness reasons on a daily basis or on weekends. They can be provided cycles on rent and this can help the locals earn a livelihood, which in turn will ensure that this project will be a long-term one,” he said.

Not much for Mumbai in PM’s ‘Housing for All’ project - The Indian Express

Prime Minister Narendra Modi’s pet project, ‘Housing for All’, does not seem to have much to offer for land-starved Mumbai Metropolitan Region (MMR) where acute housing shortage is one of the biggest challenges. The Maharashtra government, which is shortlisting cities and towns to be included in the Centre’s mission, is of the view that the fiscal incentive offered was untenable in Mumbai. “Mumbai has about 13 lakh slum dwellings in existence prior to January 1, 2000 and eligible for rehabilitation. A grant of Rs 1 lakh per dwelling will require Rs 13,000 crore, which is financially unviable,” a senior government official said. The Modi government has promised an average grant of Rs 1 lakh per slum household rehabilitated through such projects. Though the housing mission includes a component of grants for rehabilitation of slum dwellings under private partnership, senior state officials said that Mumbai might have to do with the ongoing slum redevelopment model where the state allows private players to leverage slum-locked lands for rehabilitation projects.

Another hurdle in Mumbai’s inclusion among cities covered is a rider that the beneficiary family must not own a pucca house anywhere in the country. Senior officials said the state government has approached the Centre for withdrawing the rider. “The housing crunch in Mumbai is most severe among the migrant population. Most have pucca houses in their native places,” said a senior official. The housing department has proposed that the existing slum redevelopment model through the Slum Rehabilitation Authority (SRA) be adopted for Mumbai. The SRA model allows developers to use slum-locked lands as resources and extend floor space incentives against rehabilitation of slum dwellers. Official statistics reveal that since the model was rolled out in 1996, less than 13 per cent slum projects have been completed. The ‘grants for slum rehabilitation’ model may not work in Mumbai’s satellite town, Thane, too. Of the 24 lakh eligible slum dwellings in Maharashtra, nearly 18 lakh are in Mumbai, Thane, Pune, Pimpri-Chinchwad, and Nagpur. “It has been decided that slum redevelopment under the state’s existing SRA model be continued in these cities,” a senior official said. The state has decided to include 20 smaller towns (Class C and D) in the Centre’s model. The state has proposed to extend an additional grant of Rs 1 lakh per dwelling from its own kitty to 16 D class cities.

In Chandrapur (Vidarbha) and Parbhani (Marathwada), where housing projects have not taken off, the state proposed to grant an additional Rs 3 lakh for slum rehabilitation projects. Mumbai, where land prices have soared, will not derive much from the second component, which involves extension of credit linked interest subsidy for purchase of affordable homes. The Centre has proposed an interest subsidy of 6.5 per cent for home loans availed by economically weaker home-buyers; but has introduced a cap that this benefit would be available for loans up to Rs 6 lakh. The Centre has promised assistance of Rs 1.5 lakh per home constructed for economically weaker sections through public private partnership projects. Just as Maharashtra has decided to provide an additional assistance of Rs 1 lakh from its own resources for this component, senior officials said that developers in MMR, where construction prices are among the country’s highest, are unlikely to be enthused by the option. 

The government is not in favour of the fourth option, Rs 1.5 lakh subsidy for construction of individual housing, since it is wary of graft complaints. The Centre has set 2022 as deadline for achieving housing for all. A proposal for inclusion of cities from Maharashtra will soon be placed before the cabinet.

Town Planning Scheme: Kalyan growth centre will also have affordable housing : The Indian Express

The Maharashtra government has set a steep target of creating 19 lakh affordable houses in the state by 2022 under its ‘Housing for All’ initiative. 

THE ambitious growth centre proposed in Kalyan, approved by the chief minister last week will also have an affordable housing component though the focus would be largely on commercial development. The Mumbai Metropolitan Region Development Authority (MMRDA) will set aside 10 per cent of the total land it will have to acquire for the growth centre for housing economically weaker sections. The Kalyan growth centre will be the first of several such nodes proposed in Mumbai’s urban agglomeration to de-congest the main city. The growth centre is proposed to be connected by a Virar-Alibaug multi-modal corridor, and will be close to the Nilaje railway station. A senior MMRDA official said, “We are acquiring land in the growth centre using the Town Planning Scheme, which refers to purchasing land by making the landowners stakeholders in the project, returning a portion of the developed land back to them. Under this scheme of acquisition, it is mandatory for us to use 10 per cent of the procured land for affordable housing.” 

The Maharashtra government has set a steep target of creating 19 lakh affordable houses in the state by 2022 under its ‘Housing for All’ initiative. 

Under the Town Planning Scheme, 50 per cent of the developed land would go back to the landowners, 40 per cent of the land would be used by the authority for creating infrastructure such as roads, parks, social amenities, and utilities, while 10 per cent would be reserved for housing for the economically weaker sections, the official said. In the first phase, the MMRDA will acquire 330 hectares, mostly vacant privately-owned land, using the Town Planning Scheme. Overall, the growth centre will cover 1,089 hectares in the area where the MMRDA is already the special planning authority. The development authority has not yet estimated the total number of low-cost houses that can be created in the growth centre as it is yet to decide on the Floor Space Index (FSI). 

The MMRDA is, however, planning for all infrastructure in the area assuming a maximum FSI of 4. FSI refers to the ratio of the permissible built-up area to the plot area and is an important tool for planning. “As per the region plan, Kalyan is allowed a base FSI of 0.2. Today, there is a Development Plan in place for the region, but the FSI part though slightly higher has still not been formally approved. A South Korean think-tank, which had done the initial planning for the growth centre, had suggested an FSI of 4, so while the final FSI for the area has still not been finalised, we are still planning the infrastructure to cater to a higher density,” the MMRDA official said. 

A South Korean government think-tank under its Ministry of Land Infrastructure and Transport had suggested creation of five growth centres in the outer Mumbai region, and recommended developing Kalyan as the first priority keeping in mind its accessibility and growth potential. The other four centres recommended by it are Vasai-Virar, Bhiwandi, Greater Panvel and Pen-Alibaug.

Lift 18-yr-old stay on Kanjurmarg land for Metro-III, state tells HC : The Times of India

Mumbai:

The Maharashtra govern ment has moved the Bombay high court seeking that a nearly two-decade-old stay on 135.7 acres of land in Kanjurmarg be lifted for the Colaba-Bandra Seepz Metro-III project. Assistant gov ernment pleader G W Mattos mentio ned the application for urgent hearing before a division bench of Chief Justice Mohit Shah and Justice Anil Menon on Monday. The bench has scheduled the case for hearing on Wednesday .

The HC, in 1997, had restrained the state government from allotting the around 400-acre land in Kanjurmarg to any person following a legal dispute over it that dates back to 1953.

In an application filed by Mumbai suburban district collector Shekar Tanne, the state government has urged the HC to lift the status quo order on the land that is required to set up the Metro car shed and pre-cast yard for the Metro III project. Pointing to the fact that Met ro-III was a “public project of urgency“ the state said that even if the outcome of the litigation goes in favour of the persons claiming the land, they can be compensated at that stage. The state cl aimed that if the stay was not lifted, the entire Metro-III project would be stalled and would not just affect the city , but al so the country , as it is an crucial mass transit link connecting the island city to transportation hubs as well as the do mestic and international airports. The Colaba-Bandra-Seepz Metro-III project is proposed to be operational by 2021 at a cost of Rs 23,136 crore. The project is part funded by the Japan International Cooperation Agency.

The project proposes to have eight cars with a capacity of 2,500 passengers on the route, carrying around 14 lakh passengers every day , and help reduce 3.73 lakh vehicles daily on the route.

The Colaba-Bandra-Seepz project will be underground with the line to the car shed being over ground. The government had initially planned to con struct the car shed at Aarey Colony but met with stiff opposition from environmentalists and local residents as the area falls in an eco-sensitive zone.

A government-appointed committee then searched for an alternative and narrowed down to the Kanjurmarg land for the car shed and for allied activities such as the pre-casting yard. However, the Kanjurmarg land was under a legal dispute since 1953. The claimants had launched a second round of litigation in 1996, and the following year the HC granted the status quo order.

Sebi's 70-acre institute near Mumbai biggest by a regulator globally : The Times of India

Navi Mumbai:

Market regulator Sebi is setting up a plush campus on a 70-acre piece of land near Mumbai, capable of housing over 5,000 people, to train students and financial intermediaries in market mechanics, laws and rules.

The Rs 325-crore project will train people across the market spectrum, from freshers up to the level of company directors.

Once completed in December, it will be the largest such education and training campus by any regulator globally .The institute will not only aid trained manpower needs of the capital market in India, but also several other countries in Saarc and Asean regions.

The campus, coming up at Patalganga in Raigad district, about 80km from Mumbai, is being developed by the National Institute for Securities Markets (NISM), Sebi's academic and training arm.

“No securities market regulator in the world has a cam pus of such scale,“ said Sandip Ghose, director, NISM. “It is also unique in its concept and approach, and also bigger than any B-school. The courses on offer will be in-depth, research-oriented, aimed at augmenting the capacity for the financial market,“ Ghosh said. Designed by Hiten Sethi, a well-known architect who also designed the Navi Mumbai Municipal Corporatation headquarter, a gold rated LEEDIndia signature structure, the NISM facility will be a certified green campus. It has already obtained pre-certification from GRIHA, with support from the Union ministry of new and renewable energy , for 4-star rating.

According to current estimates, the project would cost Rs 325 crore, of which Sebi would contribute Rs 225 crore. The rest will be raised from the market. The campus is being developed in phases, with the first phase planned to provide residential facilities for 900 people.

NISM is currently housed in Vashi, Navi Mumbai and offers full-time specialization courses in securities markets and quantitative finance, and part-time courses in securities law, treasury management, financial engineering, risk management, etc.

NISM also serves as a national training centre for the staff of Pension Fund Regulatory and Development Authority, Forward Markets Commission, National Housing Bank and also for the RBI in the field of capital markets. It also certifies around 1.5 lakh market professionals annually through 19 certification examinations.

Brokers Are Now a Party to Govt's Council on Realty : The Economic Time

Mumbai:



Property agents key stakeholder in realty industry along with home buyers, builders

The central government, through a crucial amendment, has included real estate agents in the Central Advisory Council that will help the government understand issues related to the real estate sector.

The amendment makes property brokers a key stakeholder in the real estate industry along with home buyers and builders.In a separate development pertaining to the same Bill, the Rajya Sabha Select Committee has added that the functions of the Real Estate Regulatory Authority, to be formed under the proposed Bill, will also include protection of interest of agents along with allottees and promoters.

The council is proposed to be formed under the aegis of the amended Real Estate Bill and the Minister of Housing & Urban Poverty Alleviation will be the exofficio chairman of the same. The advisory council will be established after the enactment of the proposed realty estate Bill.

The group will be advising the central government on a continuous basis on the implementation of the Act, recommend policy, protection of consumer interest and foster growth and development of the real estate sector. Apart from property brokers, the council will have one member representing key stakeholders including consumers, builders, architect and the legal fraternity.

“We expect the Council to be formed soon after the Bill gets enacted. The Council can act as a prime mover in initiating debates on critical aspects of the real estate industry . By including real estate agents, the government will now have better understanding of several issues that relate to consumer satisfaction in real estate transactions, as agents interact with customers more than what builders do,“ said Sanjay Bhargava, founder of realty advisory company Bombay Homes.

While property brokers have welcomed the move, they also highlighted other key issues that need government's attention.

Various broker bodies have suggested setting up registration criterion for realty agents along with minimum educational qualification, while voicing their concern on agents being treated at par with builders.

The Real Estate (Regulation and Development) Bill, 2013, seeks to establish Real Estate Regulatory Authorities (RERAs) at the state level for the regulation and development of the real estate sector.

It aims at ensuring consumer protection and standardisation in business practices and transactions in the real estate sector.

`Realty Prices in Mumbai Up 3% In June Quarter'

NEW DELHI: Property prices in Bengaluru rose 6% in the quarter to June, higher than all other key markets in the country, according to Magicbricks.com's PropIndex report, reports RaviTeja Sharma. Prices in Mumbai rose 3%, while those in Gurgaon remained stagnant. Property prices in Noida, Delhi and Ghaziabad declined between 1% and 3%.

In the June quarter, the National Property Index saw a marginal increase of 1% in value. The southern region comprising Bengaluru (6%), Hyderabad (4%) and Chennai (1%) was the best performer followed by the western region with Mumbai (3%), Pune (3%) and Ahmedabad remaining constant. In a survey done by Magicbricks, 49% of consumers surveyed said they were looking for homes in the sub-. `60 lakh price bracket.Among them, the majority (47%) wanted a 2 BHK apartment.

“While consumer interest is focused in the lower budget categories, the supply side is catering to higher budget segments. The propensity to introduce more units in 3BHK format exacerbates the situation as its larger size increases the acquisition cost,“ said E Jayashree Kurup, head, content & research, at Magicbricks, which is owned by the publishers of this newspaper.

Civic body announces water cuts for construction sites : Hindustan Times

MUMBAI: After a 20% cut in water supply announced last week, the Brihanmumbai Municipal Corporation (BMC) has decided to further reduce the amount of water provided to construction sites and other commercial users such as bottling plants, swimming pools and gardens.

“These users will be inspected, and if they fall under the bulk consumer category, 50% water cut will be imposed. In case of construction sites, if they are not bulk consumers, the size of the connection will be reduced to 15mm,” said Ashok Tawadia, chief engineer, hydraulic department.

In addition, water tankers are only being provided in residential sectors to be used for drinking, from Monday. All the 24 ward officers have been instructed to check for water leakages and theft, to minimise the loss of water. The BMC has also decided to not give new water connections to public and private gardens.

The decisions have been taken as the water stock available in the seven lakes that supply water to the city has not increased significantly, though less than two months of the monsoon are left. As of now, the BMC needs water stock that will last for 340 days, but with none of the lakes having reached full supply level, the available water will last for another 262 days.

The seven lakes supplying water to the city are located in the neighbouring Thane district and the rainfall in their catchment areas has not been satisfactory since July.

According to sources in the BMC, if the rainfall continues to be deficient, the water cut might be increased.

Out of the 3.7 lakh connection holders in the city, 88% are for domestic purpose, whereas 8% are commercial and 4% are industrial users.

The BMC supplies about 3,750 million liters of water to the city daily. After the implementation of these cuts, the daily supply will be reduced to 3,200mld.

BMC plans 9-crore makeover for Powai lake in five years : Hindustan Times

The proposal will be tabled before the standing committee on Wednesday

SPREAD OVER 550 HECTARES, THE POWAI LAKE IS DYING BECAUSE OF ILLEGAL GARBAGE DUMPING AND SEWAGE WATER FLOWING INTO IT

MUMBAI: The beautiful Powai lake is marred by green masses of water hyacinths and floating garbage.

All this will go in the next five years as the lake is all set to get a makeover.

The Brihanmumbai Municipal Corporation (BMC) has plans to start the revival work of Powai lake by removing water hyacinths and dumped garbage.

The project will cost Rs8.77 crore and it will be done in two phases in the next five years. The first phase will be completed in a year and the second in four years.

The proposal to revive the lake will be tabled before the standing committee on Wednesday. Once it is approved, work on the lake project will start.

Spread over 550 hectares, the Powai lake, in the eastern suburbs, is dying because of illegal garbage dumping and sewage water flowing into it.

A senior civic official from hydraulic department said, “With the help of IIT-Bombay professor, we have completed the bathymetric survey and examined the lake water. We have reduced the drainage water flowing into the lake to some extent.”

Two years ago, the BMC for med Powai Lake Revival Committee under the chairmanship of IIT-Bombay professor Shyam Asolekar.

The committee suggested cleaning of the lake.

Under the revival project, the BMC has already beautified the garden along the lake.

Civic body has appointed Kinjal Construction — which bid above the cost estimated by the BMC —to clean the lake of garbage, water hyacinths and silt.

“The contractor will remove water hyacinths, clear garbage and transport it to a dumping ground. Since all three municipal dumping sites are full to its capacity, the contractor has been asked to identify a place to dump the waste,” said the civic official.

Thane gets a big FSI, TDR boost : DNA

CM’s decision will pave the way for redevelopment of hundreds of dilapidated and dangerous buildings

In an important decision taken by chief minister Devendra Fadnavis, the Thane Municipal Corporation (TMC) will now control the Transfer and Development Rights (TDR) rates.

This means that 1.3 TDR can now be purchased directly from the TMC by paying a premium amount and since the corporation will be controlling the TDR, additional floor space index (FSI) shall be permissible for projects that require it.

Jitendra Mehta, secretary of MCHI CREDAI, Thane, said, “The new revised norms are more helpful for the corporation as they will be controlling the TDR rates. This rule will generate revenue for the TMC and they can use the amount for development plans, rather than asking the state government for funds.”

When asked about the impact on redevelopment projects, Mehta added, “This rule will be helpful in redevelopment projects and it will bridge the gap between demand and supply of TDR.”

“As per the new norms, the TDR has been divided into two parts — 0.5 TDR can be purchased from outside, whereas TMC can provide 1.3 TDR. The land cost will also come down, leading to increased real estate activities, which means more development,” explained Mehta.

“We welcome the announcement of 0.33 increase in FSI for Thane. It is a step in right direction and at an appropriate time. The increase in premium FSI would help in creating more housing stock, which automatically checks the rising prices in the city,” said Shailesh Puranik, managing director of Puranik Developers.

He added, “Thane has witnessed a phenomenal growth in terms of infrastructure, economy and business in the last few years. It has seen huge inflow of population from various parts of Mumbai and neighbouring regions in view of affordable homes, socio-economic infrastructure like malls, multiplexes, international restaurants, educational facilities, among others.”

Thane assumes greater importance after the central government included it in the smart cities’ list. “We believe that the increase in FSI has come in an appropriate time and it will help in overall development of Thane. As far as redevelopment is concerned, the state had separate regulations and FSI rules. Present announcement regarding increase in FSI will take care of city’s overall development,” said Puranik.

Now that TMC will control the TDR, it wants hold over the entire amount generated through the TDR to bail them out from financial crunch. This amount, the TMC says, will be used for development activities. However, the state has turned down this offer, saying 50% amount will go to its kitty, while corporation can use the remaining amount.

In March 2014, TMC had submitted a resolution asking the government to allow premium FSI of 0.33, in addition to the applicable base FSI and TDR. So, the overall FSI cap was retained while making premium FSI available as an option to TDR. Following the CM’s decision, builders will now have an option of availing FSI by payment of premium in lieu of TDR.

However, Fadnavis has made it clear that premium FSI regime cannot be extended to slum rehabilitation scheme, buildings in fishing villages, congested areas and those within Coastal Regulation Zones.

Apart from this, the perks cannot be applied to educational, medical and institutional buildings, starred category hotels, and information technology establishments, where incentive FSI is already available. The premium FSI is also linked with the width of the road.

Pramod Nimbhalkar, town development and planning officer, said, “The new regulation will not only help in development plans, but also in 80-90% of redevelopment projects will benefited. In fact, the old Thane city too can be developed and this will boost the construction activity, as rates will lower. The only cap is that the access road should be of 9m or wider to avail the premium FSI. This could act as a deterrent but only for 5-8% projects.”

Civic chief Sanjeev Jaiswal said, “Redevelopment activity will gain a momentum as we will get 1.3 TDR in comparison to previous 0.4 and 0.8. The TDR-linked premium FSI will be of help. Also, the 50% amount collected through this can be used for development work.”

The activists said the ball is now in TMC’s court. Activist Chandrahas Tawde said, “We are happy, but will have to see who stands to gain the most. With new TDR in place, monopoly of some developers will end. However, the question remains that how TMC is going to use the new resolution.”