Mumbai: Redevelopment of Dharavi has finally got a push with the State Cabinet on Tuesday granting it special project status and approving a special purpose vehicle (SPV) for its execution.
The SPV will have 80% stake of the developer and the government will have the rest. The project will be implemented on around 200 acres where 59,160 ground plus two and ground plus three floors will come up. In addition, the Railways has approved to give 90 acres of its land in Matunga and Dadar, for the redevelopment project.
As per the cabinet decision, the SPV will make an investment of up to ₹20,000 crore. Sources in the housing department said the actual cost of the project will touch around ₹50,000 crore.
“People with structures up to 300 sq ft will get new houses of 350 sq ft while those with more area will get structures with existing area and 35% of the fungible FSI,” Housing Minister Prakash Mehta said. The project is likely to create five crore square feet of salebale FSI.
Dharavi redevelopment project has been pending since 2004 as two attempts to call for tenders garnered no response. The government on February 2, 2004, had decided to redevelop one of the biggest slums. The Slum Redevelopment Authority (SRA) was designated as the special planning corporation for sector 1 to 4 in 2005 and for sector 5 in 2009.
Tenders for the redevelopment of sector 1 to 5 between 20017-11 and for sector 1 to 4 in 2016 failed despite five extensions. On August 22, 2017, Chief Minister Devendra Fadnavis extended in-principle approval to form an SPV to push the project.
As per Tuesday’s decision, international tenders will be called for a single lead partner instead for individual sectors. The special project tag will bring concessions such as exemption from stamp duty, no property tax on transit camps, and reimbursement of State GST for five years to industrial and commercial units in the notified area after receiving the occupation certificate.
The present residents and commercial units will be shifted to flats available in MMR, Shivshahi redevelopment project, Mahul, and in Deonar; to flats built under airport project within 10 km from Dharavi, which will not be used for the next five years; 47 acres of land at Vadala salt pan for the next 10 years; 6.91 hectares of the Railways land near Dharavi; and vacant land belonging to the BEST and the Brihanmumbai Municipal Corporation’s sewage treatment plant will be handed over to the SRA or SPV.
