The Brihanmumbai Municipal Corporation (BMC) in Mumbai, India, has introduced a compensation plan for residents whose homes need to be demolished for infrastructure projects. The compensation ranges from Rs 25 lakh to Rs 40 lakh ($34,000 to $54,000) and will be provided in lieu of tenements to eligible individuals, primarily slum dwellers. This decision comes as the generation of rehabilitation tenements has been inadequate. The policy was approved in 2021, and recently, the first approval was granted to a BJP MLA for compensating slum dwellers affected by the Magathane-Goregaon road project.
The Brihanmumbai Municipal Corporation (BMC) has introduced a compensation plan for individuals whose residential units need to be demolished to make way for crucial infrastructure projects in the city. The compensation ranges from a minimum of Rs 25 lakh to a maximum of Rs 40 lakh. This monetary compensation is intended to replace 300 sq ft tenements for project-affected persons (PAPs), particularly slum dwellers who can prove their residency in those areas before January 2000.
Currently, the BMC requires 36,221 tenements to accommodate PAPs affected by five significant infrastructure projects, as well as residents of old, dilapidated, and unsafe buildings on BMC-owned land, commonly known as BMC estates. This number is expected to increase to 40,000 in the near future. However, the generation of rehabilitation tenements has been insufficient, prompting the decision to provide monetary compensation instead.
Typically, these tenements are generated through slum rehabilitation schemes. When a slum rehabilitation scheme is implemented, the builder pays a 25% premium for the encroached land and offers a portion of tenements to the Slum Rehabilitation Authority. These tenements are then allocated to the BMC and Mumbai Metropolitan Region Development Authority (MMRDA) for distribution among PAPs.
The policy of providing monetary compensation was approved in 2021, but the actual amount to be paid was finalized in May of this year. The BMC conducted a comprehensive assessment to determine the appropriate compensation amount. In the F/North (Sion) ward, it was estimated to be Rs 23.8 lakh for a 300 sq ft tenement, while in the L (Kurla, Chunabhatti) ward, it would be Rs 24 lakh. The G/South (Prabhadevi) ward would receive Rs 46.6 lakh, and the G/North (Dadar) ward would receive Rs 50 lakh. Therefore, the decision was made to establish a compensation band ranging from Rs 25 to 40 lakh.
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