Re New Mumbai by Arshad Balwa

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About the Author

My name is Arshad S. Balwa and I am currently studying at the Dhirubhai Ambani

International School, Mumbai, India in the 11th Grade of the IB Diploma. My family has

been in the real estate business for many decades and as such I have grown up in a “brick

and mortar” world. I have travelled around the world including the United States of

America, Europe, Africa, etc. However every time I returned to Mumbai, I was

overwhelmed by the lack of infrastructure, lack of civic amenities and generally the urban

decay prevalent in Mumbai. While, I was always fascinated with the Real Estate business

my fascination turned into intrigue, leading to this report. Through this report, I have made

an effort to highlight the urban chaos and made some recommendations.

This report is by no means an exhaustive all-encompassing solution to the urban decay

prevalent in Mumbai. A study in much greater detail is required to be carried out across

Mumbai and other urban centers in India. However, I am hopeful, this report will

encourage others including the Municipal Corporation and the State Government to

undertake a detailed study and take measures to reverse the urban decay in Mumbai and

other urban centers.

I have taken due care to give due credit to the authors of articles I have referred in my

report. If for any reason, any of the article referred to, has not be given due credit, the

same may be certainly an error, which if it is, then it is, sincerely regretted.

Finally, I would like to thank my father Mr. Shahid Balwa for being patient with me and

encouraging me throughout the entire process.

ARSHAD BALWA

DATE : 9th

June 2012

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Abstract

This report investigates the current state of urban chaos in India and particularly in Mumbai.

This report is a study in exploring the efficacy of Urban Renewal in not only addressing

urban decay but also in emerging as a growth driver for the economic development of the

city. The study examines the socio economic pressures of urbanization, the causes of urban

decay and the various approaches to urban renewal with reference to international

experiences. The study illustrates and highlights the tremendous potential of urban renewal

and the need for government policy, which can benefit millions of people. The report also

presents an opportunity for renewal of Kamathipura and other precincts in Mumbai

The report highlights that a mere rethink on the role of the government from a regulatory to

facilitative approach can ensure success of urban renewal, which in turn can throw open the

possibility of revitalizing hundreds of such inner city clusters, leading to all round

sustainable economic growth and overall improvement in socio-economic conditions of

people.

The report highlights the urgent need for Urban Renewal projects to be taken up across

Mumbai which can lead to broad based economic development and impact millions in a

positive manner.

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Contents

Introduction …………………………………………………………………………………………. 5-7

Urban Renewal ……………………………………………………………………………………… 8-9

The Inevitable Urban Sprawling and its impact on the city of Mumbai ….. 10-12

Brief History of Mumbai ……………………………………………………………………….. 13-15

Socio Economic Costs of the Urban Sprawl ……………………………………………. 16-19

Urban Sprawl and Urban Decay ……………………………………………………………. 20-27

Government Apathy – Catalyst to Urban Decay of Mumbai ………………….. 28-31

Government Policy, Initiative and Regulatory Framework (Past and

Present)

- The Bombay City Improvement Trust (BIT) 1898-1920

- The 74th

Constitutional Amendment Act

- Jawaharlal Nehru National Urban Renewal Mission (JNNURM) – The best of

intentions but half hearted implementation

- Building Bye Laws and population density

- Redevelopment of Dilapidated Buildings (Development Control Regulation

33(7))

- Cluster Development (Development Control Regulation 33(9))

32

32-34

34-35

35-36

36

37

Urban Renewal over other schemes ……………………………………………………… 38

City Planning in Mumbai – Plan exists only on Paper !!………………………….. 39-42

Urban Renewal – Can it be a catalyst to transform Mumbai ? ……………….. 43-44

Case study of the Economics of Urban Renewal in the Indian context –

The Umar Jamal Compound – A Transformation.

- Umar Jamal Compound – Before the Initiative..

- Process of Transformation

- Public Exchequer – The biggest beneficiary of Urban Renewal

- Project Economics of Umar Jamal Compound

- Socio – Economic Benefit

45-48

48-51

51

52-54

54-56

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Urban Renewal – The Low Hanging Fruit in Mumbai ……………………………… 57-60

- Saifee Burhani Urban Improvement Trust – Bohri Mohalla – A path breaking

Initiative

- Kamathipura – An Opportunity for the Government to display its

Commitment

61-62

63-67

Conclusions and Recommendations ……………………………………………………… 68

- Strategy for Urban Renewal

- Single window clearance

- Creation of an “Urban Renewal Authority”

- Encourage Private Participation

- Risk Mitigation

- Dispute Resolution

- Property Tax

- Planning and capacity building

69

69

69

70

70

70

71

71

Epilogue 72

Introduction

[1] Fact Sheet : Urban India : Understanding in the Maximum City

The fact sheet at the outset describes

presents a study in contradictions manifested in the disparities and social inequities

cities within cities; one, the city of the poor and the other, the city of the rich.

squalor, decrepit and dilapidated dwellings are enveloped by skyscrapers, landscaped gardens,

IT parks and fancy cars on the streets. This is the view of life which hits the

Citizen of Mumbai as he goes about his daily life

“Mumbai, the heart of India’s financial sector, 65 percent of employment is in the informal

sector, as opposed to 83 percent in the country as a whole. Through the long years of India’s

command and control economy, its

cars built with production lines shipped from Britain”

Museum in London[2]

: Urban India : Understanding in the Maximum City – Uncovering the myth of urban development in Mumbai – S.Parasuraman

outset describes, Mumbai which, like many other cities in

presents a study in contradictions manifested in the disparities and social inequities

cities within cities; one, the city of the poor and the other, the city of the rich. Poverty, hunger,


IT parks and fancy cars on the streets. This is the view of life which hits the Mumbaikar

as he goes about his daily life in a seemingly unaffected manner.



command and control economy, its cities appeared as frozen in time as the elderly Ambassador

cars built with production lines shipped from Britain” - DeyanSudjic, Director of the Design

5

S.Parasuraman-page 39

like many other cities in India today

presents a study in contradictions manifested in the disparities and social inequities, resulting in

Poverty, hunger,


Mumbaikar i.e.

in a seemingly unaffected manner.



cities appeared as frozen in time as the elderly Ambassador

DeyanSudjic, Director of the Design

This describes the state of affairs in Mumbai. The city and particularly the Island City seems

to be frozen in time with little or no change since Independence.

has one of the largest urban population in the country.

Maharashtra has seen a tremendous

migrants from the hinterlands attracted by the job opportunities. The city’s infrastructure

has however not been able to keep pace

“The current forms of migration in Mumbai, according to S. Parasuraman, are not only a

sign of dynamism – they also reflect the problems associated with increasing inequalities,

declining rural economies and inadequate employment

rural and urban India”.[3]

[4] Four

[5] Cities and Region

Much of the population of Mumbai comprises of m

search of better employment,

However over generations most of them have


to be frozen in time with little or no change since Independence. The state of Maharashtra

has one of the largest urban population in the country. Mumbai – the capital city of

Maharashtra has seen a tremendous rise in its population due to the continuous influx of


has however not been able to keep pace with the rising population.

The current forms of migration in Mumbai, according to S. Parasuraman, are not only a

they also reflect the problems associated with increasing inequalities,

declining rural economies and inadequate employment generation that affect many parts of

[4] Four Indian Cities –Urban Age City Data page 19

[5] Cities and Region – Urban Age City Data page 20

Much of the population of Mumbai comprises of migrants, who have migrated to the city in

search of better employment, enhanced standards of living and access to amenities.

generations most of them have ended up in miserable living conditions.

6


The state of Maharashtra

the capital city of

continuous influx of


The current forms of migration in Mumbai, according to S. Parasuraman, are not only a

they also reflect the problems associated with increasing inequalities,

generation that affect many parts of

migrated to the city in

living and access to amenities.

up in miserable living conditions.

7

[6] Urban India – Understanding in the Maximum City – The Future of Indian Cities Dr. Amitabh Kundu – page 6

Urban Population continues to grow unchecked across India and the story is no different in

Mumbai. The mismatch between increasing population and Mumbai’s inconsistent urban

planning and governance impeded by archaic legislation and the bureaucratic machinery,

has resulted in a quagmire of urban poverty, housing shortage, slums, deterioration of

existing buildings, overburdened public and social infrastructure (roads, schools, hospitals

etc), lack of water supply , lack of sanitation and pollution.

In purchasing power parity (PPP), Mumbai is estimated to have a US$143 Billion economy.

Per capita income is US$ 12,070. Traffic congestion, loss of wetlands, and flooding as well as

the critical housing issues and slums are key challenges facing Mumbai. Some projections

state that Mumbai could overtake Tokyo as the world’s largest city by 2050. [7]

Is Mumbai ready to be the next Tokyo of the world? Probably yes but herculean efforts

would be required by all stakeholders for Mumbai to reach its destiny !!

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Urban Renewal

The Encyclopedia Britannica defines Urban Renewal as a comprehensive scheme to redress

a complex of urban problems, including unsanitary, deficient, or obsolete housing;

inadequate transportation, sanitation, and other services and facilities; haphazard land use;

traffic congestion; and the sociological correlates of urban decay, such as crime. Early

efforts usually focused on housing reform and sanitary and public-health measures,

followed by growing emphasis on slum clearance and the relocation of population and

industry from congested areas to less-crowded sites.

Each country approaches urban renewal according to its means and its political and

administrative systems. One of the chief components of urban renewal is redevelopment,

which is achieved through the clearance and rebuilding of deteriorated or obsolete

structures. Other aspects of urban renewal involve the reuse of land for new purposes,

rehabilitation of structurally sound buildings that have deteriorated or lost their original

functions, and also conservation.

As is known, the concentration of populations with lesser purchasing power and greater

social needs in certain neighborhoods is a direct result of the process of urban segregation,

that is, the phenomenon through which, due to their respective options in the land and

housing market, different social groups tend to become separated in urban areas. As the

capacity to choose a place to live depends on both personal and household income, those

with greater income obviously have greater liberty when it comes to choosing where they

want to live, while households of lesser financial means are generally pushed to places

where prices are lower. Hence, social groups with lower incomes and higher social needs

tend to group in urban areas with greater urban deficits.

Neighborhoods inhabited by lower income populations are those where, in principle,

buildings tend to be older and of poorer quality and hence, the owners experience greater

difficulties in maintaining them. Moreover, the concentration of rather problematic social

situations in such areas reduces expectations as to property values and this influences land

owners when considering engaging in possible renewal projects.

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Urban Renewal encompasses the following :

• Redevelopment projects, which may include new construction, expansion and/or

renovation

• Small-business loans and tax incentives to improve property

• Housing or home-improvement loans, particularly for affordable housing or for

assistance in restoring or updating buildings and Land purchase

• Streetscape improvements for roads, lighting, sidewalks, adjoining buildings, etc.

• Transportation improvements for public transit, intersections, etc.

• Historic preservation projects

• Creation or improvement of open spaces

The inevitable urban sprawl and its impact on the city of

Mumbai

The website of the Brihan Mumbai

governs Greater Mumbai has a large map marking Dahisar and Mulund as the borders of its

468 sq km jurisdiction. On the web

Authority (MMRDA), the organization responsible for

Metropolitan Region (MMR), the map is even larger. It

Pen – satellite towns and villages whose economy is inextricably linked to Mumbai’s

economy. But for most Mumbaikars

the Western Railway, that means Virar. On the Central Railway, it could be Kasara, Khopoli

or Panvel.

[8] Map of Mumbai

The railway lines have provided the blueprint for Mumbai’s growth, observe

architect Charles Correa in his perceptive essay Public Transport as DNA. “The urban

structure of Mumbai was not ordained by any city planner”, he wrote. It was “really


umbai Municipal Corporation (BMC), the local body that

has a large map marking Dahisar and Mulund as the borders of its

website of the Mumbai Metropolitan Region Development

the organization responsible for development of 4355 sq km

), the map is even larger. It includes Thane district, Uran and

satellite towns and villages whose economy is inextricably linked to Mumbai’s

Mumbaikars, the city ends only where the last local train does. On


Map of Mumbai – Metropolitan Region (MMR)

The railway lines have provided the blueprint for Mumbai’s growth, observe



10


Municipal Corporation (BMC), the local body that

has a large map marking Dahisar and Mulund as the borders of its

etropolitan Region Development

4355 sq km Mumbai

includes Thane district, Uran and

satellite towns and villages whose economy is inextricably linked to Mumbai’s

last local train does. On


The railway lines have provided the blueprint for Mumbai’s growth, observed noted



determined by the railway engineers” who laid down the Western and Central Rail

lines. Since the end of the nineteenth century, Mumbai has grown in the direction the train

tracks led.

Statistics show that of the 3.8

2001, roughly half have settled in the suburbs. The 1991 census shows that the population

of Kalyan (a satellite town) on the Central Railway exploded by 645 % in the ‘80s and the

Mira Bhayander (another satellite town)

% during the same time.

determined by the railway engineers” who laid down the Western and Central Rail


[9] Mumbai Rail Network

8 million people who moved to the city between 1991 and

have settled in the suburbs. The 1991 census shows that the population

on the Central Railway exploded by 645 % in the ‘80s and the

(another satellite town) region along the Western Railway expanded to 583

11

determined by the railway engineers” who laid down the Western and Central Railway local


people who moved to the city between 1991 and

have settled in the suburbs. The 1991 census shows that the population

on the Central Railway exploded by 645 % in the ‘80s and the

region along the Western Railway expanded to 583

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[10] Uncovering the myth of urban development in Mumbai – S.Parasuraman – page 39

These statistics confirm that Mumbai in the recent past has had one of the largest

population growth in the World. The growth of Mumbai’s population has to be seen in the

background of the fact that Mumbai City (excluding MMR) has probably one of the smallest

land mass available for development excluding the no development zones and forest areas.

In the backdrop of these facts, Mumbai poses the greatest challenge for efforts to

undertake Urban Renewal. However the challenges also have several opportunities as this

report highlights.

Brief History of Mumbai

Mumbai is the Capital of Maharashtra. Before it became the capital of Maharashtra it was

the most important city in the British Empire and in terms of economic importance was

considered more important than the Capital of the British Raj i.e. New Delhi. Mumbai’s

population of 20.5 Million makes it the most populous city in India and the 4

populous city in the world[11]. Situated on the Western Cost of India, Mumbai has a deep

natural harbour and is surrounded by water on almost all sides.

[12]Pre – Independence Map of

Originally Mumbai comprised of 7 islands, which were gifted by the

British. In the mid 18th

Century the 7 islands were reshaped by a massive reclamation

project and which resulted in a contiguous Mumbai mostly resembling the modern City.

The British also built major roads and railways and transformed M

seaport and a trading center. Mumbai as it exists today is the Commercial and

Entertainment capital of India and gen

Brief History of Mumbai



onsidered more important than the Capital of the British Raj i.e. New Delhi. Mumbai’s

population of 20.5 Million makes it the most populous city in India and the 4

Situated on the Western Cost of India, Mumbai has a deep

natural harbour and is surrounded by water on almost all sides.

Independence Map of Mumbai [13]Map of Portuguese Mumbai

Originally Mumbai comprised of 7 islands, which were gifted by the Portuguese to the


resulted in a contiguous Mumbai mostly resembling the modern City.

The British also built major roads and railways and transformed Mumbai into a major


Entertainment capital of India and generates about 5% of India’s GDP.[14]

13



onsidered more important than the Capital of the British Raj i.e. New Delhi. Mumbai’s

population of 20.5 Million makes it the most populous city in India and the 4th

most

Situated on the Western Cost of India, Mumbai has a deep

Map of Portuguese Mumbai

Portuguese to the


resulted in a contiguous Mumbai mostly resembling the modern City.

umbai into a major


The pre-eminence of Mumbai can be known by the fact that important Financial Institutions

like the Reserve Bank of India, The Bombay Stock Exchange, the National Stock Exchange

and the Corporate Head Quarters of

situated in Mumbai.

of Mumbai can be known by the fact that important Financial Institutions

the Reserve Bank of India, The Bombay Stock Exchange, the National Stock Exchange

and the Corporate Head Quarters of several Indian and Multinational Corporation

[15] Reserve Bank of India

[16]Bombay Stock Exchange

14

of Mumbai can be known by the fact that important Financial Institutions

the Reserve Bank of India, The Bombay Stock Exchange, the National Stock Exchange

Indian and Multinational Corporations are

Since Independence, Mumbai’s position in the Indian context

eminent and as a result the city has seen massive expansion and creation of new suburbs.

Mumbai’s first experience with reclamation po

Nariman Point and Cuffe Para

Metropolitan Region Development Authority (now known as MMRDA) was set up in 1975 by

the Government of Maharashtra as an apex body for planning and co

development in metropolitan region

been undertaken by the Government and as a result, the land mass of Mumbai, which owes

its existence to the reclamation, has remained unchanged. The issue of reclamation is

important for the simple reason that stringent Coastal Regulation Laws do not allow

reclamation of land into the sea. With continuous influx of migrants and rising population

the only way therefore to accommodate

[17] National Stock Exchange

Since Independence, Mumbai’s position in the Indian context has continued to remain pre

as a result the city has seen massive expansion and creation of new suburbs.

Mumbai’s first experience with reclamation post Independence was in the late

Nariman Point and Cuffe Parade was reclaimed and developed [18]. The Bombay

an Region Development Authority (now known as MMRDA) was set up in 1975 by

the Government of Maharashtra as an apex body for planning and co-ordination

lopment in metropolitan region [19]. Since the 1960, no reclamation of

aken by the Government and as a result, the land mass of Mumbai, which owes

existence to the reclamation, has remained unchanged. The issue of reclamation is


on of land into the sea. With continuous influx of migrants and rising population

to accommodate the residents of Mumbai is to renew Mumbai

15

as continued to remain pre-

as a result the city has seen massive expansion and creation of new suburbs.

st Independence was in the late 1960’s when

. The Bombay

an Region Development Authority (now known as MMRDA) was set up in 1975 by

ordination of

Since the 1960, no reclamation of any kind has

aken by the Government and as a result, the land mass of Mumbai, which owes

existence to the reclamation, has remained unchanged. The issue of reclamation is


on of land into the sea. With continuous influx of migrants and rising population

Mumbai.

Socio Economic Costs of the Urban Sprawl

With Mumbai, spreading in all directions, the distance between work place and home

continues to increase. The Urban Sprawl is evident in all cities and is often presented as the

natural consequence of a high rate of economic growth and prosperity. The eve

cities have led to increasing commutes with millions of people travelling everyday to work

and spending precious time and money. The increasing daily commute

on the society in more ways than one.

[20] Image from Maximum City

Socio Economic Costs of the Urban Sprawl


The Urban Sprawl is evident in all cities and is often presented as the

natural consequence of a high rate of economic growth and prosperity. The eve


and spending precious time and money. The increasing daily commute places a huge burden

on the society in more ways than one.

[20] Image from Maximum City – Suketu Mehta – page 43

[21] – Moving in the City – page 30

16


The Urban Sprawl is evident in all cities and is often presented as the

natural consequence of a high rate of economic growth and prosperity. The ever stretching


a huge burden

On an average a Mumbai resident spends

work. This leaves them with little time to lead a

sleep and relaxation. With little time and energy left for these basic needs,

witnessed a lot of negative outcomes

fitness profiles, depressed psychological states, alienation from family and a general apathy.

[23] Urban Transport in Indian Cities

[22] – Moving in the City – page 30

a Mumbai resident spends 4 hours (17 % of 24 hours) in his daily commute to

with little time to lead a normal life of socializing, recreation & leisure or

sleep and relaxation. With little time and energy left for these basic needs, the society ha

negative outcomes like a breakdown of relationships, diminishin


[23] Urban Transport in Indian Cities – Dr. Geetam Tiwari – page 9

17

) in his daily commute to

socializing, recreation & leisure or

the society has

like a breakdown of relationships, diminishing health and


As communities get disconnected thanks to the ever stretching city limits, the Indian way of

life has given way to a “modern” existentialistic way of life

with little social connect which has had

Sectors of Employment in Mumbai

The city has a relatively high rate of unemployment yet it continues to act as a magnet for

thousands who throng the city daily from all corners of India.

The design of a city is recognized to be a dynamic imprint reflecting the changing needs of

the society. It is supposed to leave enough room to accommodate the requirements of a

disconnected thanks to the ever stretching city limits, the Indian way of

life has given way to a “modern” existentialistic way of life. The Indian youth is left grappling

has had far reaching implications on the society.

Sectors of Employment in Mumbai

[24] The Economy of Cities - Page 32


thousands who throng the city daily from all corners of India.


ety. It is supposed to leave enough room to accommodate the requirements of a

18

disconnected thanks to the ever stretching city limits, the Indian way of

The Indian youth is left grappling

the society.



ety. It is supposed to leave enough room to accommodate the requirements of a

19

society not just for their basic living needs but also for leading a full life. As its residents

move to a faster world with the growth in technology the expectation of a response from

the City is expected to be commensurate with the expectation of its inhabitants. However,

Mumbai continues to be in hibernation, largely due to the lack of political will and also to a

great extent attributable to the “Chaltahai”* (meaning accepting status quo) attitude if its

citizen.

Urban sprawl and its negative effects now being felt are bringing in focus the possible and

overlooked deficiencies of urban centralization. While the city has been witnessing the

urban sprawl, the same urban sprawl is also responsible for the decay of the inner city

districts as well as the emergence of the distant suburbs.

* “ChaltaHai: in Hindi means “anything will do”

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Urban Sprawl and Urban Decay

“It is worthwhile to understand the initial development of suburban areas of Mumbai from a

historical perspective. Upon the circular issued to the Bombay Chamber of Commerce and

the Municipal Corporation in 1908, inviting suggestions of addressing the problem of acute

shortage of housing for the poor, Arthur Crawford, the then Municipal Commissioner,

emphasized the importance of comprehensive urban planning in his “The Development of

New Bombay : A pamphlet.” This was the beginning of the city’s urban sprawl”. S.

Parasuraman[25]

The Crawford Market in Mumbai was named after this dynamic Municipal Commissioner.

However little did he know that the trend of creation of the suburbs would ultimately lead

to the demise of the city. World over, suburbs act as feeder to the city, ensuring the

survival of the city in perpetuity. However, the suburbs of Mumbai have taken over the

function of the city and in the process lead to the decay of the city.

Economic changes lead to change and as such it is inevitable. Many industries, such as the

cotton mills in Mumbai declined; port and berthing activity near the Bombay Port got

replaced by the Nhava Sheva Post of Jawaharlal Nehru Port Trust [26]and the once busy

warehousing areas on PD Mello Road and busy ports fell into disuse. Textile Industry, which

was virtually the growth engine of the city for over hundred years, was completely

paralyzed subsequent to the huge strike in 1982 also referred to as the “Great Bombay

Textile Strike” in which nearly 250,000 workers employed by several textile mills across the

city, participated.[27]

[28]A View of

This eventually led to the demise of the textile mills and on a conservative estimate could

have affected about 1 million people. The allied textile activity also died and affected

more people. The impact of the demise of the Bombay Port Trust and the Textile Mills on

the population of Mumbai and the

was the principal manufacturing

closure of the Textile Mills and new mills coming up in the South of India in places like

Coimbatore, etc Mumbai lost its

A View of a defunct Textile Mill


have affected about 1 million people. The allied textile activity also died and affected

of the demise of the Bombay Port Trust and the Textile Mills on

the population of Mumbai and the resultant urban decay cannot be undermined. Mumbai

manufacturing and trading center for textiles in India. However with

tile Mills and new mills coming up in the South of India in places like

Coimbatore, etc Mumbai lost its place of pre-eminence in the textile business.

[29] A view of the Bombay Port Trust

21


have affected about 1 million people. The allied textile activity also died and affected even

of the demise of the Bombay Port Trust and the Textile Mills on

urban decay cannot be undermined. Mumbai

. However with

tile Mills and new mills coming up in the South of India in places like

in the textile business.

The once bustling Bombay Port

thousands of acres of land, in the heart of the city but due to general political apathy,

continues in ‘status quo’.

The Textile Bazaar (Cloth market) situated near the

which had seen the emergence of the likes of Mr. Dhirubhai

industrialist of India today does

entire area has decayed beyond recognition

[30]The Textile Market of Mumbai

There are several such precincts

and with the decline of the trade

declined. Examples of such decay are prevalent in the

Trading center), The Crawford market

Carnac Bunder Area (a shipping and trading center),

center), The Null Bazar Area (a Grain Trading center) etc.

The once bustling Bombay Port Trust, became practically empty. It occupies several


The Textile Bazaar (Cloth market) situated near the Crawford Market in the heart of the city,

which had seen the emergence of the likes of Mr. Dhirubhai Ambani amongst other

es not even represent the reflection of its past glory.

entire area has decayed beyond recognition.

The Textile Market of Mumbai – Once Booming today empty

There are several such precincts in Mumbai, which used to specialize in a particular trade

and with the decline of the trade, the areas in which such centers were located have

Examples of such decay are prevalent in the Fort Area (an erstwhile Shipping and

The Crawford market Area (a textile and general trading Center),

(a shipping and trading center), The Masjid Bunder Area (a grain trading

(a Grain Trading center) etc.

22

empty. It occupies several


Crawford Market in the heart of the city,

Ambani amongst other

not even represent the reflection of its past glory. The

used to specialize in a particular trade

s were located have

(an erstwhile Shipping and

(a textile and general trading Center), The

(a grain trading

[31]Once bustling F

The Fort Area , which was the Central Business Distinct

the rest of India’s, today houses ramshackle offices of business too insignificant to count.

CBD’s across the world have faced similar challenges and there are several examples of

cities addressing them successfully.

archaic laws has led to decay to these most historically significant and beautiful precincts.

[32] The Crawford Market once the

Once bustling Fort area now houses ramshackle offices

was the Central Business Distinct (CBD) of not only Mumbai but also



es addressing them successfully. However in Mumbai, the lack of vision, plagued with

led to decay to these most historically significant and beautiful precincts.

[32] The Crawford Market once the nerve center for all wholesale trade is no more than a retail market

23

only Mumbai but also



n, plagued with

led to decay to these most historically significant and beautiful precincts.

[33] The Masjid

[34]The Null Bazar – no more the center of wholesale grain trade

[33] The Masjid Bunder Area – A ghostly reflection of its past glory

no more the center of wholesale grain trade in India

24

in India

25

The list of areas which have fallen into decline and which once used to be thriving centers of

trade in the heart of Mumbai is endless. Mumbai is divided into wards for decentralization

of administration. Each ward is denoted by an Alphabet starting with Alphabet ‘A’ i.e. ‘A’

ward. The ‘A’ ward represents the location of the BMC headquarters. The Island City of

Mumbai extends generally upto the ‘G’ ward. The wards beyond the ‘G’ ward i.e. ‘H’ wards

onwards are part of sub-urban Mumbai. Practically the entire A-Ward, B-Ward, C-Ward, D-

Ward, E-Ward, F-Ward and G-Ward in the Island City has lost its prominence and today is in

the midst of unending downward spiral. These areas though situated in the most beautiful

parts of Mumbai, have decayed due to general change in economic situation and general

apathy by successive governments. Decline in the economic importance of these areas has

resulted in these areas being neglected. The poor generally have congregated in these

areas, which were once the abode of the rich and famous.

[35]Google Image of the Island City

Mumbai was planned like any other city. The workers accommodations were naturally

located besides the large factories, mills, ports etc. However with the decline of these

activities the workers became jobless and redundant. Coupled with aggressive and militant

trade unions, the entire work force remained unemployed for years altogether. Years of

impasse between the trade unions and the e

enterprises and its workers.

The workers, however continued

closed down and defunct. Years passed and

dwelling units, the new generation

city continued to decay with old erstwhile

“chawls” (workers buildings) which were rent controlled while simultan

expanding to accommodate the offspring’s of the erstwhile factory/mill workers and

migrants from all over India.

The term “Urban Decay” is often

into a bad condition leading to

buildings and poor families.

[36] An example of decaying structures across the city

impasse between the trade unions and the employers virtually sealed the fa

continued to live next to the factories and mills which were now

. Years passed and as families of the workers out

the new generation was forced to move out to the distant suburbs. The inner

ld erstwhile factory and mill workers residing in ram

“chawls” (workers buildings) which were rent controlled while simultaneously the city kept


often used to describe the process where a part of the city falls

leading to high unemployment, bad effect on economy, deserted

[36] An example of decaying structures across the city

26

mployers virtually sealed the fate of these

the factories and mills which were now

outgrew their

to move out to the distant suburbs. The inner

mill workers residing in ramshackle

eously the city kept


used to describe the process where a part of the city falls

high unemployment, bad effect on economy, deserted

27

Urban Decay is a continuous process. It never has a single cause and always occurs owing to

a combination of interrelated socio economic conditions, which include the planning of

urban cities, physical connectivity to different areas, poverty of the population,

depopulation, governmental neglect and overall in-tolerant colonization restrictions. Urban

Decay in Mumbai has lead to overexploitation of the urban resources and unsustainable

growth.

Government Apathy –

“Mumbai grew large as a trading post of the British East India Company, and it is still a

gateway between India and the rest of the world. Unfortunately, it also adopted some of the

worst aspects of British urban policy, such as severely restricted buildin

made it too flat, too congested and too expensive. Some skyscrapers have gone up recently,

but Mumbai’s entrepreneurial people remain cursed by a dearth of good buildings and good

transport options.” Edward Glaeser in “Triumph of the C

Interestingly in India the Government policy as

has led to rapid urban decay. The purpose for which

been defeated due to skewed interpretation and selective implementation.

government rather than being an enabler of development has over the years t

towards being prohibitive and development averse,

community for regeneration of inner cities

moorings, no opportunity is spared in

to displace the original residents and

– Catalyst to Urban Decay of Mumbai



worst aspects of British urban policy, such as severely restricted building heights, that have



Edward Glaeser in “Triumph of the City.”

[37] Mumbai Skyscrapers

the Government policy as expressed in its legislation from time to time

ed to rapid urban decay. The purpose for which these legislations were enacted

defeated due to skewed interpretation and selective implementation. The role of the

government rather than being an enabler of development has over the years t

towards being prohibitive and development averse, discouraging all attempts of the

community for regeneration of inner cities. Thanks to a media which draws from

is spared in reporting most initiatives of urban renewal as a move

the original residents and profiteering by the developers.

28

Catalyst to Urban Decay of Mumbai



g heights, that have



expressed in its legislation from time to time

e legislations were enacted has

he role of the

government rather than being an enabler of development has over the years tended

l attempts of the

. Thanks to a media which draws from its leftist

of urban renewal as a move

29

“India’s administrative complexities and its overlapping systems of state, city and federal

power, mean for example that Mumbai’s city government found it impossible to introduce

the plan of vaccinations for all newcomers” – DeyanSudjic. [38]

In a country where vaccination cannot be done by consensus, speaks volumes of the level of

conflict between the stakeholders. Urban Renewal obviously is seen as a gravy train and all

want to jump on it. This tainted perception has given rise to successive governments

assuming a protectionist stance which is reflected in scores of legislations which though

enacted to protect the rights of the residents have ended up stalling the natural growth and

rejuvenation of the city rendering it in a state of stunted disfiguration. Some of the

legislations which have outlived their utility are enumerated in this report.

Bombay Rent Control Act

One example of a legislation enacted with the most noble intentions becoming a cause of

urban decay over the years is the Bombay Rent Control Act. The Bombay Rent Control Act

was enacted almost a century back in very different circumstances.

Wartime conditions had resulted in unavailability of building materials and consequently an

acute shortage of rental housing. The shortage of rental housing led to a rapid deterioration

of the urban neighborhoods and that of the basic infrastructure as also an uncontrolled

increase of rent. In this backdrop the Rent Control Act was introduced. The first rent control

legislation was introduced in Mumbai in 1918 to counter the inflation on the aftermath of

First World War. The law was implemented as a temporary measure to provide relief to

tenants from demands of exorbitant rent and forceful eviction by landlords rampant at that

time. A similar legislation was implemented in Calcutta in 1920, in Delhi in 1942 and by the

end of Second World War, in other major cities of India. These laws have been modified

over time but with no significant changes.

The Rent Control Act served in fixing a standard rent on specific housing markets and

provided a ceiling on maximum rent. The Rent Control laws varied from one jurisdiction to

30

another and from one state to another, not only protecting tenants from paying more than

the standard rent but also protecting them from forceful evictions under certain conditions

defined in the law such as breach of condition of tenancy, subletting etc. Evictions are a rare

event even for bona-fide self use. Instances of landlords living in slums and tenants living in

large apartments are not uncommon.

While the Rent Control Act served the purpose of controlling the upward spiraling of the

rentals in the short run, it ended up artificially stagnating rental values and over a period of

time made real estate investments non remunerative. Only a few states allowed the

periodic increase in standard rent. From 1947-1993, as per Bombay Rent Control Act, the

standard rent stands frozen at 1947 levels and there are cases of people paying Rs. 10-20

rent per month at prime locations in Mumbai.

This had several negative and unintended effects :

• Deterioration of existing housing stock: The low rentals left the landlord with no

incentive and surplus to maintain the property.

• Reduced supply in rental market: landlords withdrew their vacant premises from the

market for fear of losing its control to tenants.

• Negative investment in housing sector: low investment due to low rate of return

because of rent ceiling

• Encroachments/ Slums: unavailability of rental homes lead to illegal houses on

vacant govt. and private lands

• Loss of revenue on municipal property tax: as it is based on “controlled” rent and

not actual rent

• Emergence of black market in rental housing and illegal transactions like payment of

“Pagdi” before entering into any tenancy

• Deterioration in the provision of civic services

31

Annexure: Indicative State-wise list of Rent Control Acts

Sl.

No. State Name of Act

1 Andhra Pradesh The Andhra Pradesh Buildings (Lease, Rent and

Eviction) Control Act, 1960 (Act No. 15 of 1960)

2 Andaman and Nicobar

Islands

Andaman & Nicobar Islands Rent Control Legislation

notified on 19.10.1965 is applicable in Port Blair

Municipal Area.

3 Arunanchal Pradesh The State Government is yet to enact a Rent Control

Act in the state.

4 Assam The Assam Urban Areas Rent Control Act, 1972

(Assam Act No. 17 of 1972)

5 Bihar The Bihar Building (Lease, Rent and Eviction) Control

Act, 1982 (Bihar Act No. 4 of 1983)

6 Chattisgarh No new Act enacted. Following the parent state Act.

7 Dadra and Nagar Haveli No State Rent Law in force.

8 Delhi The Delhi Rent Control Act, 1958 (59 of 1958)

9 Goa and Daman & Diu The Goa, Daman and Diu Buildings (Lease, Rent and

Eviction) Control Act, 1968 (Act No. 15 of 1968)

10 Gujarat The Bombay Rents, Hotel and Lodging House Rates

Control Act, 1947 (Bom, Act No. 57 of 1947)

11 Maharashtra The Maharashtra Rent Control Act, 1999

(Maharashtra Act 18 of 2000)

In all there are 34 Rent Control Act’s operating across different states of India.

32

Government Policy, Initiative and Regulatory Framework

(Past and Present)

The Bombay City Improvement Trust (BIT) (1898-1920)

The earliest example of a governmental initiative in urban renewal in India was The Bombay

City Improvement Trust (BIT) which, was created on December 9, 1898 in light of the Plague

of 1896. It was created to help Bombay Municipal Corporation in dealing with the problems

of overcrowding, insanitary conditions and other urbanization problems. From 1898 until

1920, the BIT took host of measures like promoting co-operative housing, building chawls

for the working class and building modern thoroughfares. [39]

The planned development of some suburbs such as Matunga, Sion, Dadar, etc. is attributed

to the Trust, which relieved much congestion from the island city of Mumbai. The Dadar-

Matunga-Wadala-Sion suburban development was started in 1899 with well laid out plans

and the project was successfully completed in 1900.

However by 1920, Mumbai was again facing rapid urbanization and by 1933 BIT had become

nearly ineffective and was merged with Bombay Municipal Corporation.

The 74th Constitutional Amendment Act

Tip O’Neil former Chairman of the United States’ Congress said “All Politics is Local”[40].

However, Indian politicians have seldom understood this. Before the 1990s, the Constitution

did not make local self-government in urban areas a clear cut obligation and contained

inadequate provisions. It resulted in weak and ineffective Urban Local Bodies. To counter

this and to strengthen decentralization of urban governance, 74th Constitutional

Amendment Act (CAA) came in force in June 1993. The 74th

CAA requires the state

governments to amend their municipal laws in order to empower Urban Local Bodies (ULB)

“with such powers and authority as may be necessary to enable them to function as

institutions of self governance”.

[41]The Current structure of Indian Government is depicted above

“In Mumbai, a city in which water and power are erratic, in which the suburban railway

network is so overcrowded that commuters who fall off the trains are killed everyday, the

private sector has been asked to create alternative forms of settlements that c

solutions. All this is occurring in a highly centralized political context where, even though the

councilors of Mumbai’s Municipal Corporation are locally elected, the state still holds

ultimate control” DeyanSudjic.[42

What this effectively means is that since Mumbai

leaders who have no connect to the issues facing Mumbai. The Corporations and Councilors

elected by the residents have no power and

them. Therefore in effect , the residents of Mumbai are governe

never lived in Mumbai and have no idea of the problems

The main provisions of the 74th

wards committees, deciding powers and functions, elections &

deciding on duration of municipalities, finances & finance commission, district and

metropolitan planning committees, etc. The 74th CAA, expects ULBs to assume

The Current structure of Indian Government is depicted above



private sector has been asked to create alternative forms of settlements that c



[42]

that since Mumbai is part of Maharashtra, it is g


elected by the residents have no power and are mostly indulging in practices unbecoming of

the residents of Mumbai are governed by people who have

never lived in Mumbai and have no idea of the problems faced by people in Mumbai

th Constitutional Amendment Act, includes constitution of

wards committees, deciding powers and functions, elections & reservation of seats,



33

The Current structure of Indian Government is depicted above



private sector has been asked to create alternative forms of settlements that can provide



is part of Maharashtra, it is governed by


mostly indulging in practices unbecoming of

d by people who have

faced by people in Mumbai .

constitution of

reservation of seats,



34

responsibilities for urban planning, water supply, social and economic planning, slum up-

gradation, public health, etc.

However in reality, the BMC is controlled by the State Government of Maharashtra and has

no planning powers or authority.

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) – THE BEST OF INTENTIONS

BUT HALF HEARTED IMPLEMENTATION

“(JNNURM) is seen to suffer from an intrinsic process of decentralization that requires

support from the national government”[43]

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is a huge city renewal scheme

launched on December 3 2005 by the Government of India under Union Ministry of Urban

Development. Under the scheme approx. Rs.55,000crores (U$11 billion) will be spent during

seven year period of 2005-2012. 65 cities are identified under Urban Infrastructure and

governance component under JNNURM.[44]

Objective of JNNURM

The primary objective of the JNNURM is to create economically productive, efficient,

equitable and responsive cities. In line with this objective, the Mission focuses on:

• Integrated development of infrastructure services

• Securing linkages between asset creation and maintenance for long-run

project sustainability

• Accelerating the flow of investment into urban infrastructure services

• Planned development of cities including the peri-urban areas, outgrowths, and

urban corridors

• Renewal and re-development of inner city areas

• Universalization of urban services so as to ensure their availability to the urban

poor.

The scheme also aims for various urban sector reforms to strengthen municipal governance

in accordance with the 74th Constitutional Amendment Act, 1992.

Note : US $ 1 = Rs.50

However the requirement of a city like Mumbai is much greater than the meager allocation

it has received from JNNURM. Moreover, as global experience confirms, that the

Government is only required to play the role of a catalyst. An interventionist role is bound

to fail. The JNNURM has no statutory power to actually implement an Urban Renewal

Scheme and eventually it is the State Government, which wields the authority for such

functions.

“The incapacity of the state and local governments to make adequate

alleviate this crisis has led to a government restructuring and reduction of public expenditure

in many Indian cities” Dr. Amitabh Kundu

Building bye law and population density

Mumbai, due to its geographical constraint of

The city is very densely populated with a density of >20000 people/sqkm. It has resulted in

scarcity of vacant land parcels (especia

island city) for development to fulfill the demand from rapidly growi

The table below highlights the density of Mumbai relative to other cities of the World.

[46] Mumbai’s density is highest in the world compared to any other comparable city of the

the requirement of a city like Mumbai is much greater than the meager allocation





“The incapacity of the state and local governments to make adequate investments to


Amitabh Kundu.[45]

g bye law and population density

Mumbai, due to its geographical constraint of being a peninsula, has limited land supply.


scarcity of vacant land parcels (especially in the neighborhood of commercial districts in

island city) for development to fulfill the demand from rapidly growing Mumbai population.


Mumbai’s density is highest in the world compared to any other comparable city of the

world.

35

the requirement of a city like Mumbai is much greater than the meager allocation





investments to


limited land supply.


lly in the neighborhood of commercial districts in

ng Mumbai population.


Mumbai’s density is highest in the world compared to any other comparable city of the

36

“The Population density defines as number of persons living within an area of 1 Km�

presents the most striking feature about Mumbai. In 2001, the average population density

for Mumbai City was 27,000 people per km�. Ward C is one of the most densely populated

areas with a density of 114,001 people per km�”.[47]

To solve this problem, the Government of Maharashtra came up with various development

schemes, most of them specific to the city of Mumbai, like Urban Renewal Scheme (URS),

Slum Rehabilitation Scheme (SRS), Mill land development etc. for incentivizing developers

by sanctioning a higher than normal Floor Space Index (FSI). It was expected to be a win-win

situation for all. In slum schemes and Urban Renewal Schemes for example, the

stakeholders i.e. tenants/slum-dwellers would get better housing/commercial units, the

developer would get free sale area in lieu of the redevelopment work, government would

benefit with higher revenue collections through Property Tax, VAT, Income Tax, Stamp Duty

etc. and the society would benefits with better Infrastructure and facilities. However red

tape bridled any hope of a large scale urban renewal in Mumbai. The URS renewal scheme

is a classic case of noble intentions not achieving desired goals.

Redevelopment of Dilapidated Buildings (Development Control Regulation - 33 (7))

Under this provision, the total FSI or FAR (Floor Area Ratio) for the plot is allowed up to 3

times the plot area against the base FSI of 1.33 in the Island City of Mumbai. In simple

terms for a 1000 sq.mts piece of land as against normally permissible built up area of 1333

sq.mts, the scheme allows built up area upto 3000 sq.mts. Normally under this scheme,

small projects with one or two buildings are redeveloped. On the negative side, because of

the size of projects being small there is lack of space for parking, playgrounds and

upgradation of necessary infrastructure like drainage, drinking water and electrical facilities.

According to official statistics, there are 19,642 old and dilapidated buildings in Mumbai and

which have been declared unfit for living. Out of these, 16,502 buildings were constructed

before 1940 and are eligible to be redeveloped under the current incentive scheme.[48]

37

Cluster Redevelopment (Development Control Regulation - 33 (9))

The scheme is applicable for any plot with a minimum area of 4000 sqmt and which consists

of mix of structures with different characteristics such as MHADA Certified cessed buildings,

buildings constructed before 1969 (and hence declared by respective governing body i.e.

MHADA or BMC, as unfit for living), including existing slums on the plot. The total FSI for the

plot is allowed up to 4 against the base FSI of 1.33 in Island City.

38

Urban Renewal Over Other Schemes?

The transformation of Mumbai, or for that matter any megalopolis, cannot be done by

redeveloping building by building in isolation and without taking a holistic view.

To make it clear, let’s take a scenario of a 10 acre plot with 100 old and dilapidated

buildings. As per Development Control Regulations of Mumbai, 1991, half the buildings

would come under either road widening or would be reserved for green space or other

reservations required. Buildings affected by such public reservations are of no interest to

developers and remain in a dilapidated condition for public purpose. Moreover, by

developing one building or 2-3 buildings combined together there is no space for parking,

playgrounds, upgradation of electrical, plumbing & drinking water facilities and other

amenities. The only benefit in such schemes is a slightly bigger house with better sanitation.

Further, new residents in incentive free sale potion only add to the density in the already

congested development.

This has resulted in the city having 20-30 storey buildings in plots of 100 sq.mt to 200 sq.mts

with little or no open space. Certainly in the years to come these buildings will also face the

same situation as the buildings they replaced.

On the other hand, if the same locality is developed through cluster based development

with all buildings developed together, a few tall buildings can be built and ample free space

can provide for up-gradation of a lot of common infrastructure such as road widening,

ample parking, playgrounds, green spaces, footpaths, etc. It not only provides for better

living environment but also increases the value of the neighborhood. Several countries

have infact made it mandatory to construct highrises so that more open spaces are left for

the residents and the city. However, no such regulatory requirement exists in Mumbai as a

result the development is hap hazard.

City Planning in Mumbai

One of the reasons amongst many reasons why the various schemes of the Government

have failed is the City Planning in Mumbai.

of a 100 sq ft room. A living space extends from the home to the s

centers, shopping etc. all of which

leading a fuller life.

Where are these spaces in the Indian cities of today ? Except for the planned areas inherited

from the British, most Indian cities

witnessing a “stretched” growth with the city limits being redefined continuously to

City Planning in Mumbai – Plan exists only on paper !!


have failed is the City Planning in Mumbai. A “living space” is more than the mere confines

ft room. A living space extends from the home to the schools, parks, commercial

all of which enhance a person’s mere biological existence to that of

[49] City Planning ??


from the British, most Indian cities – Delhi, Mumbai, Kolkata, Bangalore have been

growth with the city limits being redefined continuously to

39

Plan exists only on paper !!


the mere confines

chools, parks, commercial

mere biological existence to that of


, Kolkata, Bangalore have been

growth with the city limits being redefined continuously to

accommodate an unstoppable influx of people from the hinterlands. The planned city

providing for allocation of specified zones for residenti

application of land have given way to “Colonies” which are merely human settlements

dwellings of people and not planned living spaces which should normally be describing a

city.

Mumbai got its first city development polic

control landlords and develop homes for the poor. It had a town planning scheme in Bandra

and Khar by the 1920s, zoning laws in 1951 that prevented the construction of factories in

the island city and a sprawling colony for the middle income group in Bandra East by the

1960s.

All development in the Mumbai metropolitan region is supposed to be planned by the

MMRDA. But the region also has several other entities such as : the Brihan

Municipal Corporation (which manages Greater Mumbai), 12 other municipal councils (for

Thane, Khopoli, Virar, Alibaug etc.), the City & Industrial Development Corporation of

Maharashtra (CIDCO). The CIDCO is responsible for the planning of Navi Mumb


providing for allocation of specified zones for residential, commercial, recreational

application of land have given way to “Colonies” which are merely human settlements


Mumbai got its first city development policy as early as 1909, a 20 year plan designed to



ing colony for the middle income group in Bandra East by the


But the region also has several other entities such as : the Brihan



The CIDCO is responsible for the planning of Navi Mumbai.

[50] MAP of MMRDA

40


al, commercial, recreational

application of land have given way to “Colonies” which are merely human settlements -


y as early as 1909, a 20 year plan designed to



ing colony for the middle income group in Bandra East by the


But the region also has several other entities such as : the Brihan Mumbai



ai.

41

With several corporations (ULB) and several planning authorities the situation of planning

in the MMR and BMC areas is nothing but utter chaos. Coupled with skewed legislation,

the inadequate and sporadic city planning has further accelerated urban decay in

Mumbai.

Effective urban planning requires design and regulation of optimal use of space/area to

boost the economic functions and improve the physical infrastructure for a positive impact

on society and environment. In most of the cases, the unexpected increase in urban

population and the need of good urban planning is marred by ineffective urban governance

due to lack of resources, capacity, bad municipal management, fund allocation issues and

transparency issues etc.

In the context of post independence Mumbai, the first Development Plan (DP) and

Development Control Rules (DC) were put in place for the first time in 1967. The DC Rules

1967 were superseded by the Development Control Regulations (DCR – 1991) of Mumbai

and the Development Plan (DP) of 1991. However the DP of 1991 was ill conceived and

further aggravated the urban quagmire with errors apparent on record.

[51] Google Image of JSS Road

For example a small piece of land of plot admeasuring

Street in C-Ward had 73 buildings

was earmarked for a garden and road widening

several land parcels earmarked for parks, playgrounds and road widening

densely populated areas with structures existing

deprived people of basic amenities such as parks and playgrounds.

Moreover, in the context of Mumbai

planning errors are either protected forest, mangroves, salt pan or no development zones.

The breakup of open spaces though l

the people of Mumbai.

Hundreds of such examples across Mumbai City, highli

the BMC and MMRDA. As a result the Development Plan of 1991 which is still in force,

remains a plan on paper atleast in the context of the island city of Mumbai.

depicts the apathy of the Government and the crying need for

a 20 year plan made with inputs of

a small piece of land of plot admeasuring 5 acres between JSS Road and Cavel

ings (see Google image on page 42). The entire built up plot

was earmarked for a garden and road widening in the Development Plan 1991

earmarked for parks, playgrounds and road widening

densely populated areas with structures existing thereon. Such unmindful planning has

people of basic amenities such as parks and playgrounds.

of Mumbai most of the open spaces other than such unmindful

errors are either protected forest, mangroves, salt pan or no development zones.

of open spaces though looks impressive on plans, actually does not exist for

[52]

across Mumbai City, highlight the complete lack of

As a result the Development Plan of 1991 which is still in force,

remains a plan on paper atleast in the context of the island city of Mumbai. All this

depicts the apathy of the Government and the crying need for immediately putting in place

a 20 year plan made with inputs of Mumbaikars.

42

between JSS Road and Cavel

. The entire built up plot

in the Development Plan 1991. In reality,

earmarked for parks, playgrounds and road widening are actually

. Such unmindful planning has

most of the open spaces other than such unmindful

errors are either protected forest, mangroves, salt pan or no development zones.

actually does not exist for

the complete lack of planning by

As a result the Development Plan of 1991 which is still in force,

All this clearly

putting in place

43

Urban Renewal – Can it be a catalyst to transform Mumbai?

Urban Renewal presents itself as a possible catalyst for addressing the multiple problems of

Urban Decay in Mumbai. Renewal is the process of ensuring survival to perpetuity. Urban

Renewal assumes many approaches as the community explores ways to accommodate the

diverse requirements.

Several precincts, like the Mumbai Port Trust Area and the warehouses along the PD Mello

Road in Mumbai can possibility be regenerated with the combination and cooperation of

Government policy, the resident community and private enterprise.

Urban Renewal is to be seen as more than merely a means to extract well located city land

parcels for real estate. Real Estate Development has to be seen as the fuel for the urban

renewal activity. The objective has to be to achieve full economic development and urban

renewal certainly presents itself as a viable and an inclusive method for achieving this

objective of overall development.

There have been several successful examples of Urban Renewal across the world. Behind

every successful Urban Renewal project, it is invariably the full might of the Government

which leads to it success. However in India, the complexities of Urban Renewal are much

more than anywhere else in the World.

A legislative framework around this facilitative approach can present India to the world with

a great opportunity of building the nation and spurring economic revival and reconstruction

while ensuring that the biggest beneficiary is the community and the society at large.

A recent study by the Maharashtra chamber of Housing Industry (MCHI) has revealed that

the real estate business supports upto70 allied business such as cement, steel, etc. Urban

Renewal has been used as a tool globally by Governments to spur growth in the economy,

however in India, the Government has been quite lackadaisical to recognize its importance.

44

The term Urban Renewal in different context has different meanings. For e.g. in China, the

term urban renewal means the unilateral planning by the executive, leading to the

displacement of hundreds and thousands of often unwilling people and construction of

gleaming skyscrapers in its place.

In the context of every country, Urban Renewal, represents different sets of challenges. In

the Indian context it probably has the greatest challenge. Urban Renewal could be seen as

land grabbing by Developers under the political patronage of the ruling class. India thrives

as a democracy and people of this country have learnt to live with the chaos such a

multiparty democracy brings with it. As a result every effort to change, is opposed by

sections of the political class, and on most occasions it transpires that such opposition was

mindless and against the interest of the people, such political leaders pretend to protect.

Therefore, the process of Urban Renewal in Mumbai has to be implemented in the most

inclusive and democratic fashion. It is a general perception that Developers profiteer at the

cost of hapless tenants. This may be true in some cases. However a generalization can lead

to alienation of a pivotal player in the entire Urban Renewal Scheme. Having studied some

of the Urban Redevelopment projects going on in the city, a unique model of an inclusive

urban renewal project at Mumbai Central stood out which is presented as a case study in

this report.

45

Case study of the Economics of Urban Renewal in the Indian

Context – The Umar Jamal Compound – A Transformation

The UMAR JAMAL COMPOUND is an accidental initiative in Urban Renewal undertaken by

the inhabitants of an inner city cluster in Mumbai by leveraging the expertise and enabling

finance of private enterprise and by capitalizing their tenancies to promote a success story

of urban renewal at a micro level. The initiative has revitalized the entire neighborhood and

transformed lives. It is a unique example of the Urban Renewal process where profits of the

redevelopment were democratically shared between the resident community comprising of

mainly tenants and the other stakeholders of the development project including the

developer. Prime land was used effectively to maximize its utility and in turn increase the

overall profits –both social and commercial.

Umar Jamal Compound- Before the Initiative…

The Umar Jamal Compound owes its name to two brothers who were probably the early

tenants of the structures. Situated on the bustling Belasis Road, which was once the Centre

of the City, the land was originally owned by an English Man. It was part of an undivided

larger plot. In the years 1903, the land was sold to a philanthropist Haji Zakaria Haji Ahmed

Patel who built stables on the land for horses. The nearby Byculla Club, (which today is a

large bus depot), provided the horses and a steady income to the landlord. With the

construction of the Royal Western India Racing Club (RWITC) at Mahalaxmi, the Byculla

Club soon became redundant. The horses moved to RWITC. Haji Zakaria decided to lease

out the entire land with its structures to a Parsi Gentleman Mr. Jahangir Hormus Sorabjee,

who divided the stables and converted them into smaller units which could be rented to

tradesmen, workshops, etc. Mr. Jahangir Sorabjee continued to pay lease rent to Haji

Zakaria who had by now passed away but had created a trust which was the beneficiary of

the lease accruing from the land. Mr. Jahangir Sorabjee passed on the business to his young

lawyer son Mr. Soli J. Sorabjee, who continued with the business of collecting rent through a

rent collector and paying an annual lease rent to the landlord. Mr. Soli Sorabjee, went on to

become the Attorney General of India, mostly unaware of the going-on at the Umar Jamal

Compound. As years passed, the structures grew old and so did the businesses. Both out of

sync with modern times.

Umar Jamal Compound comprised of 13,837.06 sq.mt.

Mumbai close to the Mumbai Central Railway Station

completely occupied by shanties, garages, small scale businesses etc. and was occ

275 tenants. The rent payable by the Tenants

1944 and Mr. Sorabjee had an annual rent

from all the tenants.

Note : US $ 1 = Rs.50

Umar Jamal Compound comprised of 13,837.06 sq.mt. land in a prime location of

close to the Mumbai Central Railway Station. The property over the years

by shanties, garages, small scale businesses etc. and was occ

payable by the Tenants was fixed by the Rent Control Act, 1939 and

d an annual rental income of Rs.26,000/- (US $ 520

46

a prime location of South

over the years was

by shanties, garages, small scale businesses etc. and was occupied by

Rent Control Act, 1939 and

0 per annum)

[53] Umar Jamal Compound (Year 2004) before the renewal

The structures in the premises were in a much deteriorated state with

unwilling and unable to repair and renovate the structures

rental income from tenants. The

their premises under the Rent Control Act

also unfit for the small scale businesses there.

Note : US $ 1 = Rs.50

05

1015202530354045

Household Income profile

Compound (Year 2004) before the renewal

The structures in the premises were in a much deteriorated state with Mr.

and unable to repair and renovate the structures owing largely to the negligible

The tenants were not authorized to carry out the renovation of

under the Rent Control Act. The condition was not only unfit for living but

the small scale businesses there.

Pre-Urban Renewal

Household Income profile

(Per Annum) %

Household

Income profile (Per

Annum) %

47

Mr. Sorabjee

the negligible

renovation of

. The condition was not only unfit for living but

Process of Transformation

In 2004, Neelkamal Realtors & Builders Pvt. Ltd, a DB Group company (Company) acquired

leasehold rights of the entire premises from Mr. Soli Sorabjee on payment of Rs.70 million

(US $1.12 mn)as consideration and also

Zakaria Haji Ahmed Patel (Moha

Rs.10 Million(US$0.2 mn).

In a normal redevelopment scheme, land is redeveloped without change in the land use.

The existing tenants continue t

occupation. As a consequence the tenants

condition. Such redevelopment only replaces an old b

minimum impact on the socio economic front.

Post acquisition, the company representatives

requirements. Initially the tenants

wished that they be allotted an equ

activities. However it was apparent from the scale of the establishments that merely re

housing them in a new building would not alleviate their impoverished conditions.

Note : US $ 1 = Rs.50

01020304050607080

[54]Pre Urban Renewal

Neelkamal Realtors & Builders Pvt. Ltd, a DB Group company (Company) acquired


(US $1.12 mn)as consideration and also acquired the ownership rights from M/s. Haj

Haji Ahmed Patel (Mohamedan Orphanage & Asylum Fund) Trust on payment of


tenants continue to occupy the same space and continue with the same

. As a consequence the tenants experience no change in their socio economic

condition. Such redevelopment only replaces an old building with a new building and has

pact on the socio economic front.

representatives met with existing tenants to understand their

ly the tenants desired to build an industrial park on the same plot and

an equal area so that they could carry on with their

However it was apparent from the scale of the establishments that merely re


Types of Structures %

Types of

Structures %

48

Neelkamal Realtors & Builders Pvt. Ltd, a DB Group company (Company) acquired


e ownership rights from M/s. Haji

medan Orphanage & Asylum Fund) Trust on payment of


continue with the same

experience no change in their socio economic

uilding with a new building and has

met with existing tenants to understand their

industrial park on the same plot and

carry on with their current

However it was apparent from the scale of the establishments that merely re-


Types of

49

During the previous decades, there had been a sharp decline in industrial activities in

Mumbai (esp. in Island City) due to the high cost of production and labour. The costs had

made industrial activity virtually unviable. The tenants / occupants were carrying on the

trade inherited from their fathers / grandfathers and for want of a better opportunity were

continuing with the activity passed on to them. Most of the tenants were carrying out their

trade from their impoverished work sheds and not getting any return from the premises

occupied by them.

Keeping in mind the prime and strategic location of the plot coupled with decline in

industrial activity, the developers felt that the current proposition did not provide for the

optimal use of the site and was not appropriate and beneficial for both the parties involved

i.e. developer and the tenant. The developer therefore decided to explore an alternative

model and proposed a shared development model to the tenants. The tenants and the

developer conceived the idea to build a shopping mall and a residential building. As per the

scheme, tenants were to get an equal area in the shopping mall. The developer undertook

the responsibility of leasing the mall on behalf of the tenants. The residential building was

to be sold by the developer to recover the costs and for profit. The tenants committee

actively involved itself in all important decisions that were taken for redevelopment. It not

only increased the faith of the tenants, but also helped in the smooth and quick clearance

of the land.

The tenants handed over the premises for redevelopment during Jan 2005 to Feb 2005. The

company gave a hardship compensation of Rs. 50/- (US $1) per sq.ft. per month to all the

tenants during the period of construction of the shopping centre. The compensation was

paid in proportion to the areas occupied by the tenants prior to development.

Note : US $ 1 = Rs.50

50

[55]Umar Jamal

In the year 2006, the company completed and handed over the shopping mall – Orchid City

Center to all tenants on ownership basis. The developer also formed a Mall Owning

company and the tenants were given shares in the company on a pro-rata basis. The tenants

were also allotted area on a pro-rata basis in the shopping mall. The tenants became

owners of their respective areas in shopping mall in August 2006.

The developer there after facilitated lease of the entire shopping mall to Pantaloon Retail (I)

Ltd (Pantaloon) w.e.f. 22nd August 2006 on a monthly rent of Rs.125/- ( US $2.50 ) per sq.ft.

per month. The lease rent was to be paid by Pantaloon directly to all co-owners bank

account through Electronic Clearance System (ECS).

[56]Umar Jamal after Urban Renewal

51

The redevelopment of Umar Jamal Compound created a Win-Win arrangement benefiting

all the stakeholders including the landlord, tenants and the developer :

Landlord: Mr. Soli Sorabjee used to get negligible rent from the property and had no right to

increase the rent or to vacate the tenants. He received a lump sum amount ofRs.70 million

(US $1.12 mn) from the company against sale of his leasehold rights.

Tenants: The Tenants who were living in dilapidated structures and had frugal sources of

income, became owners of the new premises in the shopping mall and beneficiaries of lease

rent income from the retail outlet “Pantaloon” providing them with a steady monthly

income apart from creating a bankable asset. Most of them also continue with their small

scale businesses at other locations in Mumbai. Many of them were able to receive loans as

and when required by mortgaging their premises. The tenants who were not part of the

organized business and were accustomed to borrowing from private money lenders, pawn

brokers etc. were now in the mainstream of commercial banking and organized business.

The Company (Developer): The Company developed two 55-storey residential towers on

the plot of land and earned a profit on sale of flats in towers estimated to be approx.Rs.2

billion (US $ 40miillion).

Public Exchequer – The biggest beneficiary of the Urban Renewal

However in the process the public exchequer emerged as the biggest beneficiary. The

Government collected and continues to collect substantial tax and levies from the

development on account of stamp duty, property tax apart from the tax gains like income

tax and VAT associated with thriving commercial activity which the shopping centre

afforded. The socio economic profile of the neighborhood underwent a dramatic change,

generating employment from the mall and ancillary economic activity.

Note : US $ 1 = Rs.50

Project Economics of Umar Jamal Compound

Current Rent paid to the new owners

The Income of the erstwhile tenants jumped

The Revenue generation to Government

• Property Tax

-

100,000

200,000

300,000

400,000

Pre Urban Renewal

Lease Rent Per Annum

-

10,000

20,000

30,000

40,000

Pre Urban Renewal

Property Tax Per Annum

of Umar Jamal Compound

the new owners by Pantaloon India

Source : Research by author

The Income of the erstwhile tenants jumped several folds pursuant to the urban renewal.

Revenue generation to Government increased several folds in the form of…

Source : Research by author

Pre Urban Renewal Post Urban Renewal

Lease Rent Per Annum


Property Tax Per Annum

52

folds pursuant to the urban renewal.

increased several folds in the form of…

Rs ('000)

Rs ('000)

• Income Tax Deducted at Source (

(US $0.70mn)per annum

• Value Added Tax (VAT)

• An amount of Rs.3000 million (approx) is generated by sales from the shopping mall

on which VAT at the rate of approx. 1

retailer.

-

10,000

20,000

30,000

40,000

Pre Urban Renewal

Income Tax Per Annum

0

100000

200000

300000

400000

500000

Pre-Urban Renewal

Income Tax Deducted at Source (TDS) from rental income amounting to Rs.

Source : Research by Author

An amount of Rs.3000 million (approx) is generated by sales from the shopping mall

ch VAT at the rate of approx. 12.5% is paid to the state exchequer by the


Income Tax Per Annum

Rs ('000)

Urban Renewal Post Urban Renwal

VAT Per Annum

53

amounting to Rs.35 million

An amount of Rs.3000 million (approx) is generated by sales from the shopping mall

% is paid to the state exchequer by the

Rs ('000)

Rs ('000)

• Electricity Duty

As will be seen the Government’s revenu

during the process of Urban Renewal. Mumbai has more than a thousand such potential

clusters for Urban Renewal. On a conservative estimate, the Government Revenue from

such schemes can touch Rs.15000crores

by the Government.

Socio – Economic Benefit

In all 990** families today benefit from the rent being paid by Pantaloon. From a

dilapidated urban mess, today Umar Jam

urban renewal which has benefitted the society at large.

• Estimated by Author on the basis of the Umar Jamal compound Urban Renewal Data

** Though there were 275 tenants, there were s

-

5,000

10,000

15,000

20,000

25,000

30,000

Pre Urban Redevelopment

Electricity Duty Per Annum

As will be seen the Government’s revenues increased from Rs.0.9 million to Rs.



15000crores (US $ 3 billion*) without any significant

families today benefit from the rent being paid by Pantaloon. From a

oday Umar Jamal Compound is a shining example of sustainable

fitted the society at large.

Estimated by Author on the basis of the Umar Jamal compound Urban Renewal Data

Though there were 275 tenants, there were several co-tenants for each unit.

Pre Urban RedevelopmentPost Urban Development

Electricity Duty Per Annum

54

es increased from Rs.0.9 million to Rs.385 million



nt investment

families today benefit from the rent being paid by Pantaloon. From a

of sustainable

Rs ('000)

55

It is also important to highlight that the project was planned as an Environmentally

Sustainable Development as opposed to its earlier avatar. Urban Renewal Projects generally

are far more environmentally sustainable as opposed to the status quo, due to stringent

environment norms imposed on new construction by the Government.

The direct/indirect benefits of the renewal process at Umar Jamal compound are much

larger than what appears to be. A small project spread over only 3 acres of land (approx)

has potentially changed the lives of a thousand families. Mumbai today has several

thousand such opportunities, which are highlighted in the later chapters.

The lives of the tenants and their families have changed for good. A few testimonials of

tenants and now owners give a perspective of the life changing development.

Name of Tenants Mr. Feroz M. Papar

Income (Prior to Urban Renewal) : Rs.9,000 per month

Additional Rental Income post : Rs.124,320 per month

Urban Renewal

In Mr. Feroz Papar’s words “I am very conservative by nature. The proposition of shutting

down my paper factory and accepting space in a retail mall sounded preposterous.

TENANTS

•Additional rental revenue

•Better lifestyle

•Loan availability against property mortgage

DEVELOPER

•Revenue from sale of flats

GOVERNMENT

•Taxes (Property tax, Income tax etc)

•Stamp duty on residence

•VAT from Mall

SOCIETY

•Generation of employment in Mall

•Socio economic growth of neighborhood

REDEVELOPMENT

56

However, with some amount of convincing by the Developers, I finally agreed. I today

consider it the best decision I have ever made. I had been postponing my mother’s by-pass

open heart surgery for years. With a 10 fold increase in my income, I was able to afford

medical treatment for my mother. The change is transformational. I continue to operate

my paper factory from Daman while I have steady source of income for my family from the

mall. “

Name of Tenant : Mr. Sayed Maqbool Sikander

Income (Prior to Urban Renewal) Rs.7,600 per month

Additional Rental Income post

Urban Renewal Rs.17,220 per month

In Mr. Sayed’s word “I thank God the day I decided to agree to the redevelopment. I could

not have made a better decision. I encourage everyone to accept change. Change will

always bring good in the long term”.

Urban Renewal – “The Low Hanging Fruit” in Mumbai

Though the graph above looks like Manhattan, in reality it is the exact opposite in Mumbai’s

context. “Mumbai constitutes a category on its own. The territorial constraints of this island

city have created unusually high urban densities. Within the city limits, the average density

surpasses the mark of 27,000 people per km

people per km� (if one only takes the built

the highest density peaks in New York City’s borough of Manhattan. Furthermore, it is not

rare for the densest neighborhoods

as 100,000 residents per km�”[58]

Google image of the C ward of Mumbai paints a story of City’s

congested streets with virtually no open space.

“The Low Hanging Fruit” in Mumbai

[57]


Mumbai constitutes a category on its own. The territorial constraints of this island


surpasses the mark of 27,000 people per km� - a figure that rises to well a

(if one only takes the built-up area into account), a level higher than even


neighborhoods of Mumbai, such as Dharavi, to accommodate

[58]

Google image of the C ward of Mumbai paints a story of City’s unbelievable density

streets with virtually no open space.

57

“The Low Hanging Fruit” in Mumbai


Mumbai constitutes a category on its own. The territorial constraints of this island


a figure that rises to well above 50,000

up area into account), a level higher than even


accommodate as many

unbelievable density. Narrow

[59]

Some of the areas, which are referred to as the “low hanging fruit” are sh

above.

These areas were centers of bustling activity once upon a time. Today they are in a state of

urban decay. The picture demonstrates a complete lack of civic amenities. Most of these

areas do not even have a full grown tree

These areas represent the highest density of population per sq.km in the South Mumbai

region and perhaps the world. All these areas at some points in time were trading hubs but

have now lost their relevance to the shifting business and changing economics of business.

Google Image of C-Ward (Part)

which are referred to as the “low hanging fruit” are shown in the slide

of bustling activity once upon a time. Today they are in a state of

demonstrates a complete lack of civic amenities. Most of these

t even have a full grown tree to boast, leave alone gardens and open spaces.


. All these areas at some points in time were trading hubs but

to the shifting business and changing economics of business.

58

own in the slide

of bustling activity once upon a time. Today they are in a state of

demonstrates a complete lack of civic amenities. Most of these

to boast, leave alone gardens and open spaces.


. All these areas at some points in time were trading hubs but

to the shifting business and changing economics of business.

The Morphology of Shanghai and Mumbai in a way is unique and resembles each other.

However, the similarity ends there. The two cities present a completely different picture on

the ground. One which has found place for itself in the world and the other l

its relevance in the world.

[61]

[60] Morphology of Shanghai and Mumbai



the ground. One which has found place for itself in the world and the other looking to find

[62]

59



ooking to find

60

However this by no means indicates that it is the end of the road for Mumbai. There are

several areas in the city of Mumbai ripe for Urban Renewal i.e. which are “The Low Hanging

Fruit”. Some of these areas are :

1) Kalbadevi : The heart of the ‘C’ Ward and famous (or in famous) for having the

highest population density in the world.

2) Kamathipura : The infamous red-light district of Mumbai. Spread over 30 acres

(approx), it is situated in the heart of the city and could be transformed into a world

class residential district.

3) Mohammed Ali Road and its surroundings : Located strategically adjoining the P

D’mello Road on one side and the Mohammed Ali Road on the other side, this entire

precinct could be converted into a Mixed used development.

4) Fort and Ballard Estate : Located in the most beautiful parts of Mumbai, this entire

area could be renewed into a heritage district by conserving the various historical

buildings and converting them into a prime entertainment and hospitality district for

tourist.

Saifee Burhani Urban Improvement Trust

A pioneering initiative has been undertaken by the

direction of Urban Renewal. The Bohras are a rich and educated community who owe their

grass roots to an area called Bhendi

The project has been undertaken by the Trust known as

Trust (SBUIT) and is spread over 18 acres of land

precinct. 3500 families spread across 281 dilapidated building and 1500 shops and offices

will be provided world class redeveloped dwelling and plac

The project is expected to transform the entire area and will serve as a bench mark for

urban renewal in the city.

Urban Improvement Trust – Bohri Mohalla – A Path Breaking Initiatives

initiative has been undertaken by the Dawoodi Bohra Community in the


Bhendi Bazar or Bohri Mohalla.

project has been undertaken by the Trust known as Saifee Burhani Urban Improvement

is spread over 18 acres of land entailing Urban Renewal of the entire


will be provided world class redeveloped dwelling and places of work. [63]


[64] Pre Urban Renewal

61

Initiatives

Community in the


Urban Improvement

Urban Renewal of the entire



When the project is completed 3500 families will get new self contained larger dwelling

units. Most of the residents will

homes. The process of urban renewal will ensure that the quality of life fo

people changes for the better. Earlier in the report the negatives of urban sprawl and in

particular the impact of long commutes on social life ha

the SBUIT mitigate the risk of such break down

wonderful and wholesome living experience. The economic benefits to the society and the

exchequer highlighted in the case of the

be emulated in the case of SBUIT on a much larger

[65] Post Urban Renewal


will have their workplaces within walking distance from their

homes. The process of urban renewal will ensure that the quality of life for most of the


particular the impact of long commutes on social life has been highlighted. Projects such as

ate the risk of such break down of social ties and could provide


highlighted in the case of the Umar Jamal Compound Development will

be emulated in the case of SBUIT on a much larger scale.

62


have their workplaces within walking distance from their

r most of the


Projects such as

could provide for a


will obviously

63

Kamathipura - Another opportunity for the Government to display its commitment.

Another low hanging fruit in the list of potential urban renewal precincts in Mumbai is

Kamathipura. Kamathipura was infamously Mumbai’s oldest and Asia’s second largest red

light district. It used to serve as a comfort zone for the British troops during the British raj.

However with changing times it no longer is the red light district it used to be. With the

redevelopment of certain buildings in the area especially the Umar Jamal Compound,

Kamathipura has the potential of becoming a prime residential area. In all today there are

300 land parcels (approx.) ranging in area between 10 sq.meters to 300sq.meters. The land

parcels are so small that independently they cannot be developed. There are 32000 tenants

(approx) occupying these land parcels and the entire precinct covers area of 120,000

sq.meters (approx.). It is the most appropriate project for the government to declare as an

Urban Renewal Precinct pursuant to which the entire area can be re-planned and created

into a prime residential area with all the civic amenities that one would expect in a

developed country. The benefit of the urban renewal of this area will be enormous

considering that all the buildings in the precincts have not only outlived their utility but are

also in a dangerous and dilapidated condition. As in the case study of the Umar Jamal

Compound, which is adjoining this precinct, it is expected that the economic benefit for

renewing the Kamathipura area will be enormous for all stakeholders. Considering the

same benchmark set by the Umar Jamal Redevelopment Project, it is expected that on an

annual basis the government will increase its property tax and other tax collection in this

area by several hundred folds. A study undertaken by DB Realty Limited, reveals that the

renewal can be undertaken with minimum displacement. A pictorial representation of the

project is given in the forthcoming slides.

64

[67] Google Image of Kamathipura

65

[67]Bylanes of Kamathipura

66

Kamathipura Today

Step 1 for Urban Renewal

67

Kamathipura – Step 2 for Urban Renewal

Kamathipura – Completion of Rehabilitation in Urban Renewal Scheme

[68] Source : All Images DB Realty Limited

A detailed study is proposed to be published on the Kamathipura Urban Renewal Scheme in

the future.

68

Conclusions and Recommendation

As is evident neither the central government nor the state government have taken any

major initiative to ensure successful implementation of urban renewal schemes except

passing some laws and largely, leaving it to the will and determination of the entrepreneur

and the tenants to enable Urban Renewal albeit on a much smaller scale. By and large the

Government has largely remained a silent spectator.

Reasons for failure or slow progress of Urban Renewal initiatives can be summed up as..

• No consensus between BMC and the Government of Maharashtra on issues of Urban

Renewal.

• In many states including in Mumbai, the elected Mayor does not have executive

powers and therefore the elected representatives of ULB’s have no say.

• Property tax, the main income source for BMC, has not increased due to constraints

of rent control, non-updation or improper updation of property rolls.

• Multiple layers of bureaucracy and multiplicity of permissions required to undertake

an urban renewal project.

• Lack of foresight in planning and non-identification of precincts for urban renewal.

• No mechanism to fast track dispute resolutions between tenants and developers,

developers and landlords and government and developers.

• Nonexistent or loose legislative framework resulting in frequent intervention by the

judiciary leading to diverse judicial pronouncements in similar cases

• Lack of political will

It is believed that the following recommendations may act as catalyst in the process of

renewing the city of Mumbai and the improving the lives of its citizens.

69

Strategy for Urban Renewal

For rendering an enabling environment for the community and private enterprise to

participate in the process of development and urban renewal of the City, there is a need for

the government to initiate constitutional amendments and reforms in governance. While

constitutional amendments may be long drawn process rife with the potential of going

astray on political considerations, enough wherewithal is available with the State

Government to amend existing laws and set up mechanisms and processes which encourage

such initiatives rather than frustrate them.

Single Window Clearance

Currently for any Urban Renewal project 56 approvals* are required to be obtained from

several different authorities. Urban Renewal Schemes inherently have a long gestation

period since it involves acquisition of several land parcels from several landlords and

negotiations with several thousands of tenants. Coupled with long process of approval, the

entire scheme not only looses momentum but also becomes unviable. Therefore there is a

need to provide single window clearance to large urban renewal projects by bringing in an

enabling legislation.

Creation of an “Urban Renewal Authority” :

In case of Urban Renewal Schemes (URS) in Mumbai, the main reason as explained above

for slow progress is the requirement of different approvals (as many as 56) from various

authorities. A tangle of bureaucratic red tape complicates and frustrates the delicate

process of urban renewal.

Whereas the Government of Maharashtra took an important step in slum redevelopment

with the creation of Slum Rehabilitation Authority (SRA) in 25th

December 1995, there is a

need for creation of similar body for Urban Renewal Schemes. All Urban Renewal Schemes

(URS) would then come under the jurisdiction of the Urban Renewal Authority which would

be designated as the nodal local planning authority to provide all the requisite approvals for

Urban Renewal Schemes and act as a facilitating agency. It would result in fast tracking of

approvals and implementation of Urban Renewal projects in various locations in Mumbai.

* Source – Research by Author

70

Encourage Private Participation:

Government should act as an enabler for creating an ideal environment for encouraging

private sector participation both in terms of investment and execution. Various monetary

and non-monetary incentives like tax benefits on investment and execution, additional FSI

etc are some of the initiatives that are required to be taken up by the Government both

State and Central Government. Urban renewal projects should be declared as critical

infrastructure project by the Government of India and further Urban Renewal should be

declared as a priority sector for lending by banks at lowest possible rate of interest and if

possible at a subsidized rate of interest. Foreign Direct Investment (FDI) and External

Commercial Borrowing (ECB) should be opened up for Urban Renewal Projects.

Urban Renewal of Mumbai through cluster based redevelopment with active participation

from private players and with an enabling environment provided by the Government in a

well-calibrated manner can transform Mumbai into a world class city.

Risk Mitigation:

To boost confidence of private developers so as to increase their participation, the BMC Act

1888 should be amended by the State Government to provide for complete legislative

framework to enable undertaking of Urban Renewal Schemes, enabling the BMC to identify

and declare precincts of minimum 25 acres or above across the city as Urban Renewal

Precincts. The development of such precincts should be undertaken as per a 20 year

master-plan with active private sector participation.

Dispute Resolution:

There has to be a well-defined mechanism for dispute resolution between multiple

Government agencies, non-consenting tenants, landlords and developers. In this regard the

Maharashtra Region and Town Planning Act (MRTP) Act and the Land Acquisition Act also

have to be amended by the State Government.

71

Property Tax:

Property Tax needs to be rationalized as market rates of the properties have seen huge

upward shifts. Property tax rate in South Mumbai is only 0.002% as compared to

international benchmark of 1-2%. A reform in tax rates will not only correct the imbalance

but also generate additional municipal revenues which can be used to improve urban

infrastructure.

Planning and Capacity Building: An efficient and effective municipal management starts

with a vision of transformation of city, setting objectives, strategizing to achieve these

objectives, encouraging civil society participation, financial planning, fund raising and

resource allocation, monitoring, collection of taxes, etc. Implementation of these practices

requires capacity building not only in terms of state representatives but also the

involvement of civil society stakeholders.

The BMC should make a 20 year plan and scrap the existing Development Plan (DP). The

BMC should also scrap all the myriad of schemes and adopt global best practices by

ushering in transparency and best governance, including a complete overhauling of the

process for approval of building plans and Urban Renewal Projects..

While the conclusions have only touched the peripheral issues, greater research is required

to identify the other potential lacunas and opportunities of Urban Renewal and address

them appropriately. It is hoped that the BMC and the Government of Maharashtra will

commission such a study at the earliest and implement it for the benefit of one and all.

72

Epilogue

In the chapters above I have made an effort to explain the situation of urban chaos and

urban renewal in Mumbai. While one may argue that there is no “one solution” to the

problem at a macro level, the fact is that a series of initiatives may potentially change the

scenario. Mumbai is not the only city in the world that has faced such a situation. Mumbai

has several parallels to cities where similar situations have existed. The examples of

Shanghai are often quoted and written across the world. Politicians in India often talk of

transforming Mumbai into Shanghai !!

There are several examples of urban transformation such as Hong Kong, Singapore amongst

various other leading cities of the world where the Government has engaged with all the

stake holders in the urban quagmire and as a result such cities have transformed into

sustainable urban centers.

Urban Renewal in the context of Mumbai holds maximum promise to revitalize this great

city. Though not the only solution it definitely has the potential for success where other

initiatives have failed.

73

Sources

Sources : The Author has referred to the following documents

1. Fact Sheets : Urban India : Understanding in the Maximum City – Uncovering the myth of urban

development in Mumbai – S.Parasuraman – page 39 http://event-

one7.com/app/download/5783485616/UrbanAgeIndiaNewspaper-web.pdf

2. Urban India : Understanding the Maximum City – DeyanSudjic, Director of the Design Museum in

London. http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf (Page 4)

3. Urban India : Understanding in the Maximum City – Uncovering the myth of urban development in

Mumbai – S.Parasuraman – page 39 http://v0.urban-

age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf

4. Four Indian Cities –Urban Age City Data page 19 http://v0.urban-


5. Cities and Region – Urban Age City Data page 20

http://v0.urbanage.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf

6. Population Growth in Four Cities and Population Growth in India – The Future of Indian Cities – Dr.

Amitabh Kundu, Professor of Economics at the Center for the Study of Regional Development at

Jawaharlal Nehru University in New Delhi, India. – page 6 http://v0.urban-


7. Cities and Region – Urban Age City Data page 20 (MUMBAI)


8. Map of Mumbai – Metropolitan Region (MMR)

http://upload.wikimedia.org/wikipedia/commons/thumb/5/5b/Mumbai_area_locator_map.svg/250px-

Mumbai_area_locator_map.svg.png

9. Mumbai Rail Network – Transport Infrastructure – page 28


10. Population Growth in Mumbai: Uncovering the myth of urban development in Mumbai –

S.Parasuraman – page 39 http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf

11. http://en.wikipedia.org/wiki/Mumbai - 6 Population of urban agglomerations with 750,000 inhabitants

or more in 2007 (thousands) 1950-2025 (India) – Department of Economic and Social Affairs (UN).

Retrieved 9 June 2009

12. Map of Mumbai – Pre Independence Map of Mumbai

http://upload.wikimedia.org/wikipedia/commons/9/99/Bombay_City_map_(1924).jpg

13. Map of Portuguese Mumbai –

http://upload.wikimedia.org/wikipedia/commons/thumb/5/51/Seven_Islands_of_Bombay_en.svg/170p

x-Seven_Islands_of_Bombay_en.svg.png

14. http://en.wikipedia.org/wiki/Mumbai - Farooqui 2001, p.1

15. Image of Reserve Bank of India :

http://upload.wikimedia.org/wikipedia/commons/0/0a/Reserve-Bank-of-India.jpg

74

16. Image - Bombay Stock Exchange :http://www.topnews.in/files/Stock-Exchange_9.jpg

17. National Stock Exchange

http://upload.wikimedia.org/wikipedia/commons/d/d2/National_Stock_Exchange_of_India_2.jpg

18. http://en.wikipedia.org/wiki/Mumbai - Dwivedi and Mehrotra 2001, p.306

19. http://en.wikipedia.org/wiki/Mumbai - About Mumbai Metropolitan Regional Development Authority

(MMRDA) Mumbai Metropolitan Region Development Authority Retrieved 13 November 2008

20. The Urban India : Understanding the Maximum City - Maximum City – Suketu Mehta Focus on Mumbai

– page 43 http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf

21. The Urban India : Understanding the Maximum City - Moving in the City – page 30http://v0.urban-


22. The Urban India : Understanding the Maximum City - Moving in the City – page 30http://v0.urban-


23. The Urban India : Understanding the Maximum City - Urban Transport in Indian Cities by Dr. Geetam

Tiwari, has been TRIPP Chair, Associate Professor for Transport Planning at the Indian Institute of

Technology, Delhi, India since 1990. Page 9http://v0.urban-


24. The Urban India : Understanding the Maximum City - The Economy of Cities 32http://v0.urban-





26. "Profile of Jawaharlal Nehru Custom House (NhavaSheva)". Jawaharlal Nehru Custom House.

Retrieved 13 November 2008.

27. ^"The Great Mumbai Textile Strike... 25 Years On". Rediff.com India Limited. 18 January 2007.

Retrieved 20 November 2008.

28. Textile Mill Image :

http://upload.wikimedia.org/wikipedia/commons/thumb/7/72/India_United_Mill_1.jpg/220px-

India_United_Mill_1.jpg

29. Image of Bombay Port Trust - http://mumbaiport.gov.in/

30. Image of The Textile Market of Mumbai – Once Booming Today Empty -

http://4.bp.blogspot.com/_gqFahzpxIBQ/S8hLbl4_4qI/AAAAAAAABg0/sufBg2ho5Nk/s1600/IMG_4660.J

PG

31. Fort Area image :http://www.filigallery.com/v/india/mumbai-bombay/fort-area/Mumbai+Fort+Area-

30.JPG.html

32. Image of Crawford Market

http://upload.wikimedia.org/wikipedia/commons/c/c2/Crawford_Market_2008.jpg

33. Image of Masjid Bunder: http://farm4.static.flickr.com/3363/3448415658_cc44794011.jpg

34. Image of Null Bazaar :http://2.bp.blogspot.com/-

c2TiquIGUBE/T2CH0B2zLnI/AAAAAAAANnA/iF1xaLr_Dak/s1600/IMG_2579.JPG

75

35. Google Earth Image of Mumbai

36. Urban Decay :http://24.media.tumblr.com/pYleFrsZDnv3myybeAMIad6uo1_400.jpg

37. Mumbai Skyscraper Image :http://zolengthe.net/wp-content/uploads/2012/02/Mumbai-City.jpg

38. Urban India : Understanding the Maximum City – India’s Urban Shift -DeyanSudjic, Director of the

Design Museum in London. http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf

(Page 4)

39. http://en.wikipedia.org/wiki/Bombay_City_Improvement_Trust

40. Urban India : Understanding the Maximum City – Democracy in Urban India –K.C.

Sivaramakrishnan,http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf (Page 7)

41. Urban India : Understanding the Maximum City – Governance Structures,http://v0.urban-

age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf (Page 22)

42. Urban India : Understanding the Maximum City – India’s Urban Shift -DeyanSudjic, Director of the

Design Museum in London. http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf

(Page 4)

43. http://jnnurm.nic.in/ and Urban India : Understanding the Maximum City – Democracy in Urban India –

JNNURM - K.C. Sivaramakrishnan,http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-

web.pdf (Page 8)

44. Urban India : Understanding the Maximum City – Democracy in Urban India –K.C.

Sivaramakrishnan,http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf (Page 7)

45. Urban India : Understanding the Maximum City – The future of Indian Cities – Dr. Amitabh Kundu,

Professor of Economics at the Center for the Study of Regional Development at Jawaharlal Nehru

University in New Delhi, India. – page 5 http://v0.urban-


46. Urban India : Understanding the Maximum City – The future of Indian Cities page 24 http://v0.urban-





48. http://mhada.maharashtra.gov.in/

49. Image from Urban India : Understanding in the Maximum City –page 38http://v0.urban-


50. MMRDA Map :http://www.mmrdamumbai.org/showArticle.jsp?srv=Mek3Fj6ZD033HG

51. Google Earth of JSS Road

52. Image from Urban India : Understanding in the Maximum City – Density page 24http://v0.urban-


53. 3 images : Source : DB Realty Limited

54. House Hold Income and Types of Structures : Source DB Realty Limited

55. Image of Umar Jamal : Source DB Realty Limited

76

56. Image of Umar Jamal after Urban Renewal : Source DB Realty Limited





59. Google Image of C-Ward :

http://www.ctbuh.org/Portals/0/events/Conferences/Mumbai10/Tour/C-Ward/C-

Ward_01_800x698.jpg

60. Image from Urban India : Understanding in the Maximum City – Urban Morphology page 26-

27http://v0.urban-age.net/0_downloads/UrbanAgeIndiaNewspaper-web.pdf

61. Image from Urban India : Understanding in the Maximum City –page 18http://v0.urban-


62. Image of Shanghai

http://wikitravel.org/upload/shared//thumb/c/c4/2566714935_4018446800.jpg/350px-

2566714935_4018446800.jpg

63. Source : DNA 8th

May 2012

64. Integrated Cultural Resources in Planning Case Study – Mumbai – page 20

http://iuc2011.in/sites/default/files/presentations/Integrating-Cultural-Resources-in-Planning-

Case-study.pdf

65. Integrated Cultural Resources in Planning Case Study – Mumbai – page 21

http://iuc2011.in/sites/default/files/presentations/Integrating-Cultural-Resources-in-Planning-

Case-study.pdf

66. Google Image of Kamathipura – Source DB Realty Limited

67. Bylane Images of Kamathipura – Source DB Realty Limited

68. Plans of Kamathipura – Source DB Realty Limited

69. Cover Image :http://unboxedwriters.com/wp-content/uploads/2012/07/mum.jpg

Re New Mumbai by Arshad Balwa

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