According to the official, the decision was prompted by the lack of interest developers took for slumpockets in areas like Kandivli and Dahisar in the western suburbs and those beyond Ghatkopar like Mulund and Bhandup in the eastern suburbs. The move is a fall-out of the recession that has hit the real estate industry for thepast three years.

But while builders would find it attractive, questions are being asked on the effect reduced charges would have on amenities to be provided to the hutments. According to the SRA official, however, fees to BMC for water, sanitation, street lighting and drainage facilities remain untouched. ``What we are reducing is the Rs 280 that was being paid to us for establishment charges,'' said the official. But the fee of Rs 560 to BMC remains.

But not many are impressed. An official of Shivshahi Punarvasan Prakalp (SPPL) on condition of anonymity admitted the Rs 280 instead of being foregone could have been transferred to BMC fund. ``We needed the money for civic amenities,'' he said. Similarly, Chandrashekhar Prabhu, noted architect and a housing rights activist also felt Rs 560 in itself - which translates to Rs 50 per sq ft- was too meagre for providing amenities to slumdwellers. ``With the construction of buildings for slum-dwellers, the demand for water by those very people who used tomanage with a mug or bucket of collected water would increase,'' he predicted. This along with the sanitary and power supply demands of high-rise buildings mandates that more money is allocated for the amenities.

The managing director of SPPL, G S Gill refused to comment saying that it was a state government decision though he questioned the water supply norms being followed in the city. ``The BMC is supplying water at the rate of 240 litres per day per person in the city. Do we actually use so much water?'' he asked adding that a reasonable 140 litres per day would be enough and were this to be followed, the slum reconstruction programme would not be a strain, at least on the water supply sources of the city.

The SRA on the other hand claims it will be able to cover its establishment charges from projects taking place in other parts of the city, notably the island city areas of Worli and Dadar. But Gill welcomed the proposal to reduce the deposit per tenement saying Rs 10,000 adequately compensated theslumdweller and would be sufficient to pay his society's maintenance fees and the property taxes. The state has however granted the slum redevelopment schemes a 10-year concession in property taxes.