CIDCO
Constituted in 1970, with a paid up capital of Rs. 39.5 million, today city &
industrial Corporation of Maharashtra Ltd (CIDCO) is a premier town planning and
development agency of India.
CIDCO’s considerable success can be attributed to the strength and expertise of its
team of highly experienced specialists. Their ability to evolve innovative strategies and
schemes of mobilization of resources on a vast scale for cost effective implementation of
projects, as phenomenal.
Here are a few excerpts the former Chairman, Mr. R.C. Sinha, as to how CIDCO had
visualized Navi Mumbai as an alternate to Mumbai. The up & downs. The changing trends
of the market value for residential & commercial complexes. Consideration for
NRI’s investment. Amenities facilities for residents. Roads and transport, school,
colleges, Hospitals. Here was a new city being born and industries CIDCO can proudly claim
Navi Mumbai to be its baby….
The
future of Navi Mumbai
As the dust settles to the frenzied speculation of the mid 90’s, it appears that
those who ad entered the market in Navi Mumbai then, especially investors, lost
considerably. But then, investors were never really part of CIDCO’s original plans.
As far as CIDCO is concerned. Navi Mumbai then, especially investors, lost considerably.
But then, investors were never really part of CIDCO’s original plans. As far as CIDCO
is concerned, Navi Mumbai, after the fall, is back on track. Speculators had driven prices
out of reach for actual users, for whom Navi Mumbai was really meant. To investment
seeking NRIs, this may sound disturbing. India Properties, along with Ashwin Ramesh, spent
over an hour with Mr. R.C. Sinha, former director, CIDCO (May 90-June 94) wherein he
succinctly detailed CIDCO’s role right from the time it was incorporated until it
went to the hands of his very able successor, Mr. V.S. Dhumal. Mr. Sinha was at the helm
of CIDCO during Navi Mumbai’s major growth phase, taking the turnover of CIDCO to 640
Cr from only 90 Cr. In four years. The Seawoods Estate for NRIs, was his brainchild.
Currently, Mr. Sinha is Chairman and Managing Director of Maharashtra State Road
Development Corporation. The following article is based on the conversation with him.
Navi Mumbai” In the 70s, was planned as a self-contained city, which b 1994-95 would
be inhabited by 20.00 lakh (2 mn) people and provide employment to about a quarter of
that. It’s easy to see, that in an average family of 4, with one bread-earner, it
would largely be self-sufficient. To attract returnees, NRIs or others, Navi Mamba’s
infrastructure would necessarily have to be better than Mumbai and also (much) cheaper. To
achieve this, in 1970, a special company, CIDCO, (City and Industrial Development
Corporation) was formed with an equity base of Rs. 3.9 crores. It may be surprising to
know, that this was the largest such project undertaken in the world (Navi Mumbai is
spread over 344 sq.km Mumbai is 438 sq.km.) and was only the third attempt in India to
build a planned city, the earlier ones being Jaipur and Chandigarh (Gandhinagar and
Bhubaneshwar followed). To reiterate briefly, CIDCO’s aim was to make 14 townships,
each independent of the other, interlinked through the central Business District
(CBD). To
achieve this CIDCO would have to :
(1) Create jobs
(2) Make accommodation available at an affordable price
(3) Have facilities and infrastructure that would attract people to it rather than strain
Mumbai further.
At the end of more-or-less the original time frame envisaged to complete the project how
successful has CIDCO been in its endeavour ?
In around the mid – 90s it did not appear that property would be affordable to the
middle class, however, now it appears that it might well be. Facilities-wise it is
certainly better than Mumbai. A sampler :
(a) Civic Amenities 21% of Navi Mumbai is covered by road (as opposed to only 8% in
Mumbai). In fact 58% of Navi Mumbai is non-buildable. Parks, playgrounds and trees (almost
2 mn planted!) occupy a large tract of space.
(b) Primary & Secondary Education : Over 200 Schools, each of which must compulsorily
have a playground at least equivalent to the size of the building. (for which CIDCO
charges only Re. 1/- p.a.) – compare this with Mumbai’s crowded schools.
(c) Higher Education : 3 Medical, 5 Engineering, 2 Architectural, 2 Management and 1
Pharmacy College with a total of 51, all of which are affiliated to Mumbai University.
(d) Recreational : 2 Cinema houses with a Multiplex, Entertainment Centre, planned,
Community Centres, Navi Mumbai Sports Association, Merchants Gymkhana etc.,
(e) Medical : Almost 2,500 hospital beds and plans for a mega hospital.
At the time CIDCO was formed there was no bridge across the Thane Creek nor local railways
extending to Navi Mumbai, both of which are now in place. However, transport facilities
between the two still leave a lot to be desired. To address this bottlenecked bridges and
overpasses are planed from Sion to New Panvel in such manner so that there will be no
traffic signals in between. This is schedule for completion by end 2000. Also required
would be laying of fast track on the Harbour Line. Hover craft services have begun, but
they are suspended during the monsoons which is a constraint and should be made
all-weather.
Wholesale
Markets
One of main aims of setting up Navi Mumbai was to decongest Mumbai’s Wholesale
Vegetable, Fruits and a Commodity Markets were located at the Southern tip of Mumbai which
meant that goods arrived from all over into the heart of the city, the majority being
redistributed back along exactly the same route in which they came, a South Mumbai barely
required 5% of the goods transported to it. Today, other than the steel market, (SAIL, the
major players, has however shifted its depot to Navi Mumbai) all wholesale markets have
moved and provide employment to approx 50,000 people (’95 census figures). Another
50,000 are employed by the Thane-Belapur Industrial Belt. JNPT (3-4000) private builders,
approx 2.00 lacs. It is estimated, that by 2003, Navi Mumbai will generate 7.5 lac jobs.
Currently its population is approx 9.00 lakh, which was eventually surpass the 20.00 lacs
originally estimated by 2004. Occupancy in the business district of CBD (15-20%) is low
but “Rome wasn’t built in a day” to quote Mr. Sinha. 7 years ago Vashi was
only 40% occupied, today it is almost 100%. Statistically, occupancy levels at other
centres are : Nerul 80%, Airoli 70%, New Panvel 90%, Khargarh, Ulve and Dronanagri are
under different stages of development.
To a large extent however, Navi Mumbai has become more of an extended suburb of Mumbai
rater than its competitor which may be one reason for low occupancy levels in the
CBD. As
compared to the extended Western Suburbs of Mira Road and Vasai, Navi Mumbai is much
closer to South Mumbai and with the expected improvement in transport facilities, this is
a fact unlikely to change.
It becomes important at this stage to state clearly that CIDCO was not averse to NRIs but
to the speculation that a sudden demand may cause. In-fact, the Seawoods Estate, was
especially meant for NRIs. However , to curb speculation, no NRI was permitted to buy more
than one unit, even though at one stage, some were willing to buy entire buildings !.
Today, many have been left with highly priced properties, the price of which have not
increased as speculators anticipated . At this stage, one can well ask the question : What
is the credibility factor between CIDCO and the NRIs ?
Though Seawoods today is barely occupied, (40 apartments out of 900 sold with 400 taken
apartments) whatever had been promised has been delivered, and in many places, bettered.
There has been a time overrun of about a year but that has no resulted, as it
shouldn’t, in any increase in price to the buyer. Another area of concern between
CIDCO and some developers is the controversy on the Coastal Regulatory Zone
(CRZ). The
problems have arisen because the view taken by CIDCO is different form the Navi Mumbai
municipality. After the CRZ Notification came into effect in February 1991, CIDCO
undertook a study to analyse its effect. Based on this, CIDCO took the view that
development of Navi Mumbai came under the classification of CRZ II (which covered urban
areas that were already substantially built up) and allotted plots for further
construction.
The municipality however, took the view that the area on the landward side of existing
roads / structures fell under CRZ VII and stalled further construction This has yet to be
sorted out. Yes, speculators will not come back to Navi Mumbai in hurry, but as occupancy
levels rise, prices may recover, but not for a while to the heady days of the mid-90s.
Navi
Mumbai & Canary Wharf
One is compelled to draw a comparison of Navi Mumbai and Canary Wharf, the East London
property that wiped out the Canadian Realtor, Olympia & Work. At Canary Wharf this
year, after a sustained leveling off, rents have risen by as much as 15-20%. The major
difference between the two is, that after the downturn, development at Canary Wharf
stopped completely, whereas in CIDCO, despite its cash-strapped status, it continues.
Some of CIDCO’s stopped completely, whereas in CIDCO, despite its cash-strapped
status, it continues.
Some of CIDCO’s major projects coming up are :
1. 180 acre International Infotech Park (IIP) is now in the market. 8 lakh sq.ft. of which
are to be housed above Vashi Railway Station which will include 2 lakh sq.ft. of shopping
/recreational space.
2. International Exhibition Centre on 450 acres to promote exports.
3. Domestic Airport at New Panvel.
4. Seaside Golf Course. Water sports, Bowling Alleys etc.
5. Transharbour link between Colaba-Uran, Sewri-Nhava and a road bridge between
Mulund-Airoli under construction.
6. Booking are now open for the 2nd phase of 594 flats at Seawoods.
7. Business school to be set up in collaboration with the Harvard Business School and the
Wharton School of Management on 100 acres. The Indian Institute of Technology
(IIT) and
the Delhi Public School are also setting up a brand here.
8. State of the art hospital and a medical complex with built-in facilities to attract
private practitioners.
Conclusion
These and other developmental exercises are being planned to reach the envisaged
population and employment targets. As long as these are executed (targets of occupancy
levels at the STP and 60% by December ’97, which seems highly ambitious) Navi Mumbai
will keep attracting people and given time, it may yet turn out to be a rival of its
ancestor, Mumbai. Afterall, today, everyone knows only New York who’s heard of
“York”!
However, it must be conceded, that Navi Mumbai has come to represent that face of NRI
investment in India, be it in the profits they made in the early years or the losses they
are now saddled with. It must also be conceded that were it not for the NRIs, CIDCO would
not have achieved as much and Navi Mumbai would not have been as developed as it is today.
It may be fair to say, that it was the investor, many of whom were NRIs, who have been the
fuel for Navi Mumbai growth.
