MoEF examining proposal to allow 100% private schemes in slum rehabilitation in CRZ areas

MUMBAI: Slum rehabilitation projects in coastal zones in the country's hottest property market Mumbai are set to become a complete private affair soon, which is in sharp contrast to the current mandatory norm of executing projects under the Public-Private Partnership arrangement only, with participation of government entities being more than 51%.

The Ministry of Environment and Forest ( MoEF) under the central government is examining the proposal to change the policy to permit 100% private schemes in slum rehabilitation projects in Coastal Regulatory Zone ( CRZ) areas, the ministry said in an affidavit filed in the Bombay High Court.

The court has asked the ministry to expedite the change in policy and come up with a decision by December 31. According to this affidavit, a copy of which is reviewed by ET, the ministry is proposing to change the policy. In fact, the ministry is reviewing the proposal sent by the Maharashtra government that has requested for an withdrawal of the 51%-49% ratio in slum rehab projects in CRZ areas. "...the Government of Maharashtra has requested for withdrawal of 51-49% stake ratio, so that the scheme can go as a private scheme stating that no proposal was received so far and the scheme is not financially viable and workable. The same is under consideration of the ministry," said the affidavit filed by the central government.

The affidavit by MoEF was filed in response to a writ petition filed challenging the constitutional validity of para 8 (V) of the Coastal Regulation Zone Notification, January 2011.

This norm stated that the Government of India has allowed only Public Private Partnerships with 51% share being with the state government to undertake slum redevelopment projects in CRZ areas. Following the assurance of the Centre that the ministry is considering the proposal to allow 100% private schemes in SRA Projects in CRZ areas, the court has disposed of the writ petition.

"The modification in policy would result in private developers undertaking slum rehabilitation projects in CRZ - II areas without the need to give a majority share to the state. There are over 250 slum pockets in CRZ areas in Mumbai whose redevelopment has been stuck as a result of the 51% PPP clause imposed by the CRZ Notification, 2011," said Aditya Pratap, advocate who represented the petitioner.