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BMC now seeks public suggestions on monetary compensation for project-affected people

Updated on: 06 October,2021 07:45 AM IST  |  Mumbai
Prajakta Kasale |

Civic admin does U-turn after it was accused of not being proactive in handling rehabilitation of people affected by infrastructure projects

BMC now seeks public suggestions on monetary compensation for project-affected people

Earlier, project-affected people had rejected homes at Mahul citing health hazards due to pollution. File/Sayyed Sameer Abedi

Backtracking on its earlier proposal to provide monetary compensation to project-affected people instead of homes, the civic administration on Tuesday sought suggestions from citizens on it. While it had proposed to give Rs 17-30 lakh shanty owners, the amount was Rs 34 lakh to Rs 1 crore for structures built before 1964. The plan to shift from homes to financial relief is the fallout of BMC’s struggle to build apartments for PAP.

Trouble mounted for the BMC after the rehabilitated residents refused to stay in homes provided to them in Mahul, citing health hazards due to pollution. The civic is now in dire need of 36,229 homes for its pending infrastructure projects, which will displace people, and the number will soar to over 45,000 in the near future.

The BMC had begun efforts to build 5,000 houses in each of the seven zones of the city for the PAP in 2019 dangling land and construction TDR as incentives. But it managed to start projects only for 4,108 houses—with an additional cost of Rs 1,610 crore—for rehabilitation of PAP. This situation prompted the BMC administration to send a proposal to the standing committee for a policy to give monetary compensation instead of homes to people affected by infrastructure projects like roads and bridges. 

As per the proposal, slum-owners will get Rs 17 lakh to Rs 30 lakh. Structures built before 1964 will get from Rs 34 lakh up to Rs 1 crore. The BMC has already made a provision of Rs 100 crore in the budget for such compensation. But on Tuesday, the administration made a U-turn before discussion on the policy in the standing committee and asked citizens for suggestions after it was accused of not being proactive in rehabilitating PAP.

“Only three to four BMC owned plots are available for construction of PAP tenements. Out of these, about 700 PAP tenements can be constructed at Worli. Similarly, the tendering process for Dahisar and Bhandup for 1,000 PAP tenements has started. Thus BMC can construct only 2,000 tenements on its own plots,” said Iqbal Singh Chahal, BMC commissioner. He said despite implementing a scheme for construction of PAP tenements in lieu of land and construction TDR and viability gap funding, construction of only 4,000 more homes can start. The BMC has sought suggestions from the general public, private landowners, developers and other stakeholders. Suggestions can be mailed at

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