Mumbai: The state cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday approved the proposal to form a Special Purpose Vehicle for implementing the Dharavi Redevelopment Project, spre-ad over 576 acres of land. Dropping its plan to redevelop the area sector-wise, the Maharashtra government now plans to consider the entire area as a single sector and put it up for redevelopment, and will call for international bids.
Speaking to media after the meeting, Prakash Mehta, Minister for Housing, said, “Around 70,000 residential and 30,000 commercial or industrial establishments will be constructed in Dharavi over the next seven years.” According to Mehta, tenants, who have existing structures of 300 square feet, will get flats with 350 square feet carpet area, while those in slums, with 350 square feet but less than 500 square feet, will get flats of 400 sq. feet carpet area after redevelopment; likewise, those living in slums in a 500 square feet area, will get flats of equivalent area; the latter will also be offered an additional 35 per cent fungible Floor Space Index (FSI).
At present, there are 59,160 residential slums with ground-plus-two or three-floor structures spread over 104 hectares of land. Apart from these, there are 12,976 industrial or commercial establishments. Mehta said, “The total area will be considered for redevelopment. International bids will be called for the whole sector. The expected cost of rehabilitation is Rs 22,000 crore and over one lakh structures will be constructed in seven years.”
“It was the housing department’s idea to form an SPV for redevelopment of the project. The Cabinet has given its nod and now the project will get a boost,” said the minister. Earlier, it was decided to redevelop Dharavi in five sectors and sector five was to be redeveloped in the first phase. However, there was no response to this project. Then, the Maharashtra Housing and Development Authority (MHADA) decided to redevelop it, but later dropped the idea.
Mehta said, “In SPV, the developer will have an 80 per cent stake, while the state government will own the remaining 20 per cent. We are planning to acquire 40 acres of land owned by the railway ministry. At a recent meeting on September 28 with railway officials, they agreed to hand over the land.