Dharavi Redevelopment Project Limps Ahead
The first phase of slum redevelopment of Dharavi, one of Asia’s largest slums, may be ready by the end of this year amidst tug-of-war between multiple interest groups. The project however runs a risk of getting entangled in public-private dispute similar to that of the Mumbai airport redevelopment project.
The Dharavi project began almost a decade ago and is now in a critical state. It has been facing problems such as eligibility criteria, and has been moving very slowly since then.
Redevelopment tendering process
Earnst and Young will be helping the Maharashtra Housing and Development Authority (MHADA) in revamping sector 1-4 of Dharavi. It will do a feasibility study, explore alternatives and suggest the tendering process. The authorities have sub-divided the four sectors into 13 sub-zones or phases and are planning to invite bids on a sub-zone or phase basis.
A developer can bid for multiple phases/clusters or several developers can bid for a phase each in a sub-sector, but the physical dimensions of the old sector will remain the same. In the project’s first phase, there will be about 356 tenements of 300 sq-ft each.
Opportunity for developers
The slum is spread over 240-hectare in Central Mumbai. The slum redevelopment project is a big ticket for a developer as it releases a huge floor-plate after redeveloping the slum. Moreover, its neighbouring localities include Bandra-Kurla Complex, Bandra, Mahim and Sion, which are prime real estate locations and are highly lucrative. The locality is also in close proximity to various railway stations, arterial roads and Western expressway.
Eligibility
MHADA is currently unclear regarding the eligibility criteria. As per the criteria, all slum-dwellers residing here prior to January 1, 2000 are eligible for free rehabilitation. However, earlier government surveys show that only 20-35% slum dwellers are eligible as per records. There is also a confusion regarding who should be given free rehabilitation- a slum-occupant or the owner.
There is also a political element to the eligibility criteria as the slum-dwellers are important vote banks. As such, fresh surveys are conducted to determine the exact number of people eligible for free rehabilitation. However, the major problem authorities are facing currently is that each survey creates a new list of eligibility and this process can go on for a long time.
Problems
The major dispute between the authorities and locals is regarding the size of new units the slum-dwellers will be receiving after rehabilitation. The government has currently determined the size of the new units as 300 sq-ft and 400 sq-ft based on the slum-dwellers’ present slum size. However, certain activist groups and political outfits are demanding a uniform 400 sq-ft for all slum-dwellers.
Small businessmen who own manufacturing units in Dharavi have spaces ranging from 200-1,000 sq-ft. These businesses too are demanding extra space over the current space at the same place and for free. Giving additional space and allowing toxic material that is released by these manufacturing units is not feasible under current government regulations.
Another problem the authorities are facing is from the land owners. The plots in Dharavi are owned by private entities. These plots have to be merged to make larger floor-plates so that bigger structures can be constructed for rehabilitating the slum-dwellers. However, the land owners are either asking exhorbitant prices or permission for self-development, which at this point is not viable from the project’s perspective.
The third potential problem MHADA may face in the future is the dispute between public and private entities similar to that faced in the Mumbai Airport slum redevelopment project. In less than six of years of signing the contract, there were disputes between the Housing Development Infrastructure Ltd (HDIL) and Mumbai International Airport Pvt Ltd (MIAL) and the project came to an abrupt halt.
