BMC Prepares MP's Largest Slum Rehabilitation Project Yet: ₹3,835 Crore Plan For 98 Hectares Under PMAY 2.0

Bhopal (Madhya Pradesh): The Bhopal Municipal Corporation (BMC) has prepared what is being billed as the largest slum rehabilitation project in Madhya Pradesh to date, unveiling an ambitious Rs 3,835 crore redevelopment plan for the Banganga and Danapani areas under the Pradhan Mantri Awas Yojana (PMAY) 2.0.

Spread across nearly 98 hectares, the project proposes the construction of more than 27,000 Economically Weaker Section (EWS) housing units and aims to transform two of the city's largest slum clusters through a CLP (Construction-Linked Payment) based Public-Private Partnership (PPP) model. The BMC has already invited Expressions of Interest (EoI) from private developers for the project.

According to Urban Administration Department (UAD) officials, the proposal is larger than the ongoing PMAY 2.0 rehabilitation programme of Indore, which envisages around 16,000 rehabilitation flats at an estimated cost of Rs 2,200 crore. Previous slum rehabilitation projects in Bhopal, including Basic Services to the Urban Poor (BSUP) and in-situ redevelopment schemes, were significantly smaller in scale.

Prime land to fund redevelopment

Instead of relying solely on government funding, the BMC plans to finance the project through land monetisation. Around 10.6 hectares of prime land in Banganga and 20.69 hectares in Danapani have been earmarked for commercial and residential development by private partners. Officials estimate that revenue from these land parcels, combined with PMAY grants and beneficiary contributions, will make both projects financially viable while generating a surplus.

Banganga project near CM house

The most high-profile component of the plan is the redevelopment of the Banganga slum cluster, located barely 500 metres from the Chief Minister's residence. Spread over approximately 28 hectares, the area is home to 6,042 families living in five major slum clusters.

The BMC has proposed constructing 6,060 EWS housing units in 15-storey stilt-plus-podium towers at an estimated cost of Rs 968 crore. Since sufficient vacant land is unavailable within the area, affected families will be shifted to rented accommodation during construction. The project earmarks Rs 130.50 crore to provide a monthly rent allowance of Rs 6,000 per family for three years.

The redevelopment blueprint also includes a 45-metre-wide road with bridge connectivity, a 5-MLD sewage treatment plant, urban stream rejuvenation over five hectares, landscaped green zones, and public amenities.

Danapani to become future housing hub

The larger Danapani project covers around 70 hectares and proposes the construction of 21,255 EWS housing units at an estimated cost of Rs 2,866 crore. Under the plan, housing will first be developed on government-owned land currently used as the Danapani Sabzi Farm. Families residing in nearby slums will then be relocated to the new housing complexes. Officials say the large number of proposed units has been planned not only for existing residents but also to accommodate future rehabilitation requirements arising from slum clearance drives elsewhere in the city.

The master plan includes schools, public service amenities, temple spaces, internal road networks, and green zones. It also proposes a 6.3-hectare urban forest with around 2,000 trees, a 132-kV power grid, road widening works, nala channelisation, and solar-powered infrastructure.

Official Statement

The BMC Additional Commissioner Tanmay V Sharma said suggestions have been invited through the EoI process and the next stage of planning will begin after stakeholder feedback is received. “If implemented as planned, the Banganga and Danapani redevelopment initiative is expected to become one of the most significant urban transformation projects undertaken in Madhya Pradesh, setting a new benchmark for slum rehabilitation and affordable housing development in the state,” said Sharma.