MMRDA introduces financial compensation policy to expedite infra projects

In a major policy shift the Mumbai Metropolitan Region Development Authority MMRDA will implement a resolution on introducing a comprehensive financial compensation policy for expediting the resettlement process for projectaffected persons PAPs across several of its highimpact urban infrastructure projects This resolution was approved during the 159th Authority Meeting chaired by Deputy Chief Minister and MMRDA Chairman Eknath ShindeAccording to the development authority the initiative is expected to resolve the ongoing challenges related to resettlement and boost the pace of critical projects such as the Mumbai Metro Network Mumbai TransHarbour Link MTHL SewriWorli Elevated Corridor and other major urban mobility projectsAs part of the Mumbai Urban Transport Project MUTP which has seen several projects aimed at transforming the cityrsquos transport network MMRDArsquos new compensation framework will replace the traditional tenementbased resettlement approach with financial compensation This policy will provide projectaffected individuals with the option to receive financial aid instead of relocation into resettlement colonies offering a more efficient and flexible solution for all stakeholders involvedMMRDA has undertaken several ambitious projects such as the SantacruzChembur Link Road JogeshwariVikhroli Link Road Metro Monorail and the VersovaVirar Coastal Road The ongoing projects including the SewriWorli Elevated Corridor and the Thane TikujiniwadiMankhurdndashBorivali Underground Road are expected to affect approximately 6300 individuals as per preliminary surveys Due to a lack of available tenement space in proximity to the affected areas some projectaffected individuals have resisted resettlement creating delays in project progressFollowing the Brihanmumbai Municipal Corporations BMC circular issued on July 3 2023 MMRDA has proposed to adopt a similar policy which will offer financial compensation as an alternative to resettlement tenements This policy will be implemented across major infrastructure projects under the Mumbai Urban Transport Project MUTPResolution for financial compensationFor residential use Financial compensation will be based on the ready reckoner rate Annual Statement of Rates and the compensation will vary based on the affected individuals category and area A minimum compensation of Rs 25 lakh will be provided for projectaffected individuals in residential areas in both category 1 legal and authorised structures and category 2 squatters and encroachers While there is a cap of Rs 40 lakh for category 2 category 1 has a cap of 1292 sq ft area Compensation will be offered at 100 per cent of RR rate for authorised and legal structures and 075 per cent RR rate for encroachments and squattersFor nonresidential use For the affected nonresidential projectaffected people the compensation will be provided based on the ready reckoner rates ASR rates of groundfloor commercial spaces For eligible areas up to 225 sq ft compensation will be offered at 100 per cent of RR rate for authorised and legal structures and 075 per cent RR rate for encroachments and squattersAccording to MMRDA this policy is designed to ensure that the affected individuals are adequately compensated thus avoiding further delays and escalating costs associated with litigation and disputes over tenement space The development authority feels that the policy will help in completing vital projects funded through World Bank loans and other financial resources within the prescribed timelines thus avoiding cost overruns and ensuring the successful development of the cityrsquos infrastructureThe financial compensation policy will apply to all major infrastructure projects implemented by MMRDA under the Mumbai Urban Transport Project MUTP framework These include projects such as the Mumbai Metro network SewriWorli Elevated Corridor ThaneBorivali Underground Road and others The policy also applies to residential and nonresidential buildings that are being affected by these projectsSpeaking on the policy Maharashtra Chief Minister Devendra Fadnavis saidldquoThrough this innovative financial compensation policy we are taking a major step towards transforming Mumbairsquos infrastructure By prioritising timely project completion and minimising disruptions we are ensuring the cityrsquos rapid growth and development This progressive approach will not only enhance connectivity but also create longterm benefits for Maharashtrarsquos economy and the wellbeing of its people making way for a more sustainable and prosperous futurerdquoAccording to Shinde the policy will allow efficient resettlement reducing unnecessary delays in crucial urban infrastructure projects By offering financial compensation MMRDA is moving towards a modern and flexible model that will speed up the delivery of key projects such as the SewriWorli Elevated Corridor and Metro Line projects ensuring that these crucial initiatives are completed within the stipulated timelinesrdquo the MMRDA Chairman saidDr Sanjay Mukherjee MMRDAs Metropolitan Commissioner stated that the approval of this policy marks a pivotal moment for the authoritys approach to resettlement By offering a flexible and efficient solution we are not only easing the burden on projectaffected individuals but also ensuring the timely completion of Mumbairsquos critical infrastructure projects This progressive step will significantly enhance the quality of life for the cityrsquos residents while enabling us to meet the growing demands of Mumbairsquos development he said