REDEVELOPMENT VS. SRA KEY DIFFERENCE AND DECISION-MAKING CRITERIA

Urban areas, especially in cities like Mumbai, are undergoing rapid transformation due to space constraints, aging infrastructure, and increasing population density. Two major approaches have emerged to address these challenges: Redevelopment of old buildings and Slum Rehabilitation (SRA). This project aims to compare these two housing models, examining their objectives, mechanisms, benefits, and limitations to help stakeholders decide the most suitable approach for a given context.

Objectives

• To define and understand the structure of Redevelopment and SRA projects.
• To analyze key differences in ownership, legal procedures, and stakeholder roles.
• To evaluate which model is more appropriate under different site and community conditions.
• To provide decision-making criteria for project planning and execution.

What is Redevelopment?

Redevelopment refers to the process where old, dilapidated, or unsafe buildings—typically owned by housing societies—are demolished and reconstructed with modern amenities. The existing residents are temporarily relocated and later provided new flats in the redeveloped building, usually at no cost. In return, the developer gets the right to build and sell additional units in the extra Floor Space Index (FSI) allowed by the municipal authorities. This model requires legal ownership, active participation of society members, and adherence to municipal guidelines.

What is SRA (Slum Rehabilitation Authority)?

The SRA scheme is a government-backed initiative aimed at transforming slum settlements into formal housing. Under this model, eligible slum dwellers (those who resided in the slum before the cut-off date) are provided free, government-approved housing units in newly constructed buildings on the same land. Developers undertake the project by using the extra FSI granted by SRA to build saleable units. The cross-subsidy model makes the project financially feasible. It’s a regulated, eligibility-based scheme governed by SRA rules and requires formal notification of the slum area.

Key Differences

1. Target Group:

• Redevelopment: Legal owners of old buildings.
• SRA: Slum dwellers residing in notified slums

2. Legal Status:

• Redevelopment: Ownership documents are available.
• SRA: Residents often lack formal ownership, with informal or undocumented status.

3. Land Ownership:

• Redevelopment: Typically society-owned or private land.
• SRA: Usually government-owned or encroached land.

4. Government Involvement:

• Redevelopment: Limited, mainly for municipal sanctions.
• SRA: High involvement through the SRA authority.

5. Type of Housing Provided:

• Redevelopment: New flats, generally larger.
• SRA: Free flats (around 300–350 sq. ft. carpet area).

6. Developer Incentives:

• Redevelopment: Additional FSI and sale area.
• SRA: Higher FSI, TDR, and sale component.

7. Resident Rights:

• Redevelopment: Ownership retained by residents.
• SRA: Ownership granted after 10 years of possession.

8. Customization:

• Redevelopment: Residents have input on layout and design.
• SRA: Standardized designs as per SRA norms.

Financial Model

Redevelopment:

• Funded by developers who sell additional flats beyond rehab units.
• No cost to the residents

SRA:

• Free housing provided to eligible slum dwellers.
• Developers profit by selling a portion of the units constructed under higher FSI.
• No cost to eligible residents.

Decision-Making Criteria

When to Choose Redevelopment:

• Legal title and ownership exist.
• Building conditions are old and need repair.
• High control over design and customization.
• Minimal government support required.
• Active resident participation in decision-making.
• Clear documentation (society registration, title documents).

When to Choose SRA:

• Informal occupancy or slum status.
• Unplanned, deteriorating slum settlements.
• Low control over design (SRA norms apply).
• Essential government support through SRA authority.
• Resident coordination often managed by NGOs or developers.
• Proof of residence required for eligibility.

Advantages

Redevelopment – Advantages:

• No reconstruction cost for residents.
• Larger flats with modern amenities (e.g., lifts, parking, security).
• Clear ownership and property rights.
• Improved lifestyle and infrastructure.
• Saleable area and FSI incentives make the project financially viable.
• Societies can negotiate design, layout, and project terms.
• Enhances the value of the entire area.
• Limited government involvement allows quicker approvals.

SRA – Advantages:

• Completely free housing for eligible slum dwellers.
• Minimum 300–350 sq. ft. carpet area, as per SRA norms.
• Basic amenities included (water, sanitation, electricity).
• Legal home ownership after 10 years, shifting from informal to formal housing.
• Higher FSI and TDR make the project profitable despite providing free units.
• Regulated design ensures compliance.
• Clears slums, improving urban hygiene and public health.
• Strong government involvement ensures compliance and project security.
• Formalizes the urban poor, bringing them into the formal economy.

Cases :

Redevelopment: A Mumbai housing society in Dadar undertook redevelopment and received 30% larger flats with modern amenities, all without paying any cost. The developer sold an additional 20 flats at market rate to recover the investment.

SRA Project: In Dharavi, over 1,000 families were shifted to newly constructed buildings under SRA, receiving free flats with title documents. However, delays in construction and unclear eligibility led to protests from excluded dwellers.

Conclusion:

Both Redevelopment and SRA play crucial roles in urban renewal but cater to different segments of society. Redevelopment is best suited for housing societies with legal ownership and cooperative members looking to upgrade their living standards. SRA, on the other hand, serves the urban poor, offering formal housing to slum dwellers through a heavily regulated, state-supported mechanism. The choice between the two models depends on land ownership, legal status of occupants, financial feasibility, and long-term development goals.

By-

Adv. Hetal Master, Associate Partner