Dharavi slum is now realty gold mine

MUMBAI: The sub-continent’s biggest slum is also the most-prized urban renewal project in Mumbai. Which explains why the biggies of Indian real estate are in a race to bag the Rs5,661 crore Dharavi makeover plan.

 

Gammon India, K Raheja Universal, Hiranandani Group, Delhi-based DLF group, Kalpataru, Godrej, Tata Housing along with California developers (Los Angeles based) and a major Dubai consortium are among 25 groups in the running. And, why not. The project offers a Floor Space Index (FSI) as high as four (as opposed to the normal FSI of 1.5).

 

Clearing final bureaucratic hurdles, the Maharashtra government will soon appoint a land acquisition officer to recover the private land encroached in Dharavi. Of a total 535 acres, 21 per cent are under private ownership and 16 per cent of this has been encroached upon.

 

By mid-February, the Slum Rehabilitation Authority (SRA), the nodal agency for the project, will issue a notice to invite Expression of Interest (EOI). The work contract will be issued only after three months during which bidders will be evaluated for their technical and financial capabilities.

 

If the recent land deals of the Mumbai Metropolitan Region Development Authority (MMRDA) and the National Textiles Corporation (NTC) are any indicator, the government will be expecting a competitive price for the land.

 

According to the project’s management advisors MM Consultants, the tangible benefit to the state government will be to the tune of Rs2,700 crore (Rs1,100 crore from amenities, Rs600 crore in freed land and premium of Rs1,000 crore).

 

For the first time, a comprehensive tender document will be worked with the developer to ensure good amenities in the residential buildings where the 51,000 families currently living in Dharavi will be rehabilitated.  

 

“The developer has to give a 15 year guarantee for external paint, lifts and electrical maintenance,” said architect Mukesh Mehta, CEO, MM consultants.

 

In addition to re-settling slum-dwellers, the plan proposes the conversion of 25 hectares into a Special Economic Zone (SEZ), in which the existing GDP of Rs2,000 crore can be enhanced to Rs13,000 crore.

 

“The SEZ will house gem and jewellery factories, leather industry, info tech etc. It will ensure increase in productivity, value addition to existing units and create job opportunities for 75,000 people,” explains Mehta.

 

Calling for an annual social audit by the state government to avoid frauds, Mehta defended the choice of building high-rises for the slum-dwellers. “Slum-dwellers in developing countries have high-level of adaptability and are an aspirational lot, eager for change,” he adds.

 

Supporting Mehta, leading developer Niranjan Hiranandani told DNA that the main task for Mumbai is to put the existing space to the best use. “Singapore, Hong Kong and even New York have housed their poor in tall buildings,” he pointed out. “We have to create roads, parks, schools and hospitals too. A comprehensive project like Dharavi can be successful. But the question is - are we committed to drive the change?”

 

VK Tripathi, former NTC managing director and an infrastructure expert, feels there is a general consensus in Maharashtra that a public-private partnership is the best way to drive big projects. “Despite the risk of litigations, things are moving ahead. Dharavi residents are engaged in small-scale businesses and this is best option to elevate their social status,” he said.