The largest slum pocket of the country which is around 535 acres will be redeveloped by issuing a global tender project. The SPV will have 80% stake of the developer and the government will have the rest 20%. The project will be implemented on around 200 acres where 59,160 ground plus two and ground plus three floors will come up. In addition, the Railways has approved to give 90 acres of its land in Matunga and Dadar, for the redevelopment project.
“People with structures up to 300 sq ft will get new houses of 350 sq ft while those with more area will get structures with the existing area and 35% of the fungible FSI.” Housing Minister Prakash Mehta said.
International tenders will be called for a single lead partner for the Dharavi Redevelopment project. The special project tag will bring concessions such as exemption from stamp duty, no property tax on transit camps. As per the new plan, global tenders will be invited for the project that is expected to cost Rs 22,000 crore.
The present residents and commercial units will be shifted to flats available in MMR, Shivshahi redevelopment project, Mahul. The area has developed itself as a hub of small-scale industries with more than 12,000 commercial establishments, however, it will be a challenging deal to move people to alternate spaces for redevelopment.
The Opposition has criticized the move as an election stunt. NCP spokesperson has raised many questions on this decision of the project.
“The government already had a Special Purpose Vehicle (SPV) in the form of Shiv Shahi Punar Vikas Prakalp which was started by the Shiv Sena-Bharatiya Janata Party (BJP) government in their previous tenure. Why are they floating a new SPV? Had they been serious, they would have started the work under the same SPV in the last four years. This is nothing but an eye-wash.” Nawab Malik, Nationalist Congress Party (NCP) spokesperson, said.
If the redevelopment project comes into effect then it will be the largest redevelopment project ever, lots of challenges are on the way but the special project tag given to the project might smoothen the work.