Mumbai’s long-stalled push for self-redevelopment is finally gathering pace, aided by fresh government intervention and institutional support. The Self Group Redevelopment Authority (SGRA), established in 2025 under the leadership of BJP MLC Pravin Darekar, has received more than 1,600 proposals from housing societies seeking to independently redevelop their properties.
The concept, originally advocated nearly two decades ago by urban planner and former MHADA chairman Chandrashekhar Prabhu, was envisioned as a way to redevelop thousands of ageing and cessed buildings without depending on private developers. Despite its promise, progress remained limited for years due to two major constraints: lack of financial access and inadequate technical expertise to navigate approvals from bodies like MHADA and the BMC.
The SGRA now aims to bridge these gaps by facilitating funding and simplifying the approval process. “Isolated efforts by societies, even with support from activists, were often derailed by the nexus between builders and officials,” said a housing department official. “While guidance was available, funding for initial processes such as feasibility reports, proposal submissions, and premium payments remained a major hurdle. The SGRA has empanelled cooperative banks that have started funding these projects. As a government-backed body, it has also made approvals easier.”
However, funding challenges persist. RBI-imposed caps restricting cooperative banks from allocating more than 5% of their advances to such projects have slowed progress. “The chief minister has requested the RBI to relax these norms and not classify self-redevelopment as a real estate activity. A decision is expected soon,” the official added.
Project costs remain substantial, ranging from Rs 50 crore to Rs 150 crore for standalone developments, and exceeding Rs 1,000 crore for cluster projects. To meet these needs, the state is exploring multiple financing avenues, including NCDC, NABARD, MMRDA, and cooperative banks. “Union cooperation minister Amit Shah has, in principle, agreed to provide Rs 1,000 crore through the NCDC,” said Darekar. “MITRA is also working to mobilise Rs 25,000 crore through financial institutions.”
The SGRA is expected to support societies throughout the process, from funding to execution. While 46 proposals have secured loans and 21 projects have been completed, bureaucratic delays and political differences—particularly between the BJP and Shiv Sena—have slowed operational rollout.
Highlighting successful cases, Darekar said, “Residents of Nandadeep in Vile Parle upgraded from homes of 360 sq ft to over 1,400 sq ft through self-redevelopment. Builders were offering them only 700 sq ft. Similarly, in Charkop, residents of Shwetambara constructed 650-sq-ft flats in place of their earlier 400-sq-ft ones. These success stories are encouraging more societies to come forward.”
Prabhu reiterated the model’s potential, stating, “It is an alternative to builders and can serve people’s interests by making available more area, better planning and construction, better amenities, maintenance-free living and a surplus that can give a monthly income to society members.”
Source: Hindustan Times
