Mumbai: The state government has decided to sign a deal with the Railways to construct temporary accommodation for Dharavi slum dwellers. Principal Secretary SVR Srinivas who is looking after the project, said, “In exchange for land, the state government will make an upfront payment of Rs 800 crore to the Railways. In addition, the state will also offer it a 20 per cent share of the profits.”
The state had asked Railways to hand over 45 acres of land in order to build transit houses for slum dwellers till they were rehabilitated. This land is part of two land parcels owned by the Western Railways and Central Railways in the Matunga-Mahim area, measuring 97 acres.
The government insisted on getting this land since several occupants expressed apprehension over moving to far-off places and were creating hurdles in the project. Another official said, to carry forward the project, a proposal for this land was put before the Railways, which was recently approved by the union railway ministry.
For the Dharavi slum redevelopment project, the government had floated a global tender on November 23, calling interested companies to become lead partners in the construction of an integrated planned township. Two companies — the Adani Group and the Dubai-based Seclink Group showed interest.
Of these two, the Dubai company seems to be a strong contender. However, the state is yet to officially sign a memorandum of understanding, as a high-powered committee, which includes the chief secretary of Maharashtra, has not finished the scrutiny process for these two companies.
The 240 hectares of land have been notified for the rehabilitation of slum dwellers. According to the tender requirements, the selected company has to form a special purpose vehicle (SPV) having 80 per cent equity (Rs 400 crore) while the government will hold 20 per cent equity (Rs 100 crore).
The SPV has to construct free houses for eligible slumdwellers, which includes amenities and other infrastructure facilities as per the bid agreement. In lieu of this, the company will get a marketable component. The selected SPV is expected to complete the project within seven years from the date of signing the development agreement. Considering it is an ambitious project of the state, the developer will be given a floor space index of 4 as an incentive.
