Mumbai: For the first time, Mumbai Metropolitan Regional Development Authority (MMRDA) will be venturing into a slum redevelopment project. With the aim of extending the Eastern Freeway to Thane, MMRDA will redevelop a 75-acre slum sprawl, Ramabai Ambedkar Nagar in Ghatkopar East. Since a part of the Freeway extension passes through the Ramabai Nagar, MMRDA has decided to acquire the slum land.
In the past MMRDA had executed a rental housing project in the Mumbai Metropolitan Region by granting high Floor Space Index to builders.
Redevelopment project to generate funds for MMRDA
The redevelopment will also enable MMRDA to generate funds for its various big ticket infrastructure projects including the Mumbai Trans Harbour Link (MTHL). It is well known that MMRDA is facing a cash crunch on account of these projects currently underway in its jurisdiction.
According to sources, the proposal was prepared by the CEO of Slum Redevelopment Authority and will help MMRDA to acquire this land free of cost. The proposal, sources say was placed before the authority meeting held in Nagpur under the chairmanship of chief minister Eknath Shinde on December 12.
Aim to rehabilitate 16, 575 slum dwellers
MMRDA says it will rehabilitate 16,575 slum dwellers and also get 5000 more tenements for project affected people.
According to MMRDA estimates, it will earn a revenue of ₹1,073 crore from the sale of residential units. However, sources point out that if MMRDA chooses to sell the sale component to a private developer to build and sell his housing stock in the market, then MMRDA stands to earn ₹2918 crore.
The deal assumes significance because MMRDA is looking for avenues to shore up its revenues as it has its hands immersed in several big ticket infrastructure projects like the metro lines and MTHL. Sources say MMRDA will be incurring a cumulative cost of nearly ₹75,000 crore on the 10 metro rail projects excluding Metro Line III (Colaba-Bandra-Seepz) and Metro Line I (Versova-Andheri-Ghatkopar). It has sought 10 percent of the funds from the Centre and 25 per cent from Mumbai Municipal Corporation.
The Authority has also appointed SBI Capital Markets to raise loans. A sum of ₹28,705 crore has been earmarked for various projects including the Mumbai Trans Harbour Link, metro corridors, Versova-Vasai sea bridge, underground road stretches between Eastern Freeway and Marine Drive in 2023-2024.