Dharavi makeover heads back to the drawing board….Alka Shukla
The state wants MHADA to play a larger role in the Rs 15,000 cr redevelopment project
The state wants MHADA to play a larger role in the Rs 15,000 cr redevelopment project
The countrys biggest slum redevelopment project has gone back to the drawing board seven years after it was conceived.The Rs 15,000 crore Dharavi redevelopment project could be in for a revamp.The state Housing Department is working on an alternative model that could increase the role of Maharashtra Housing and Area Development Authority (MHADA) in the redevelopment of the 535 acre slum,and clip the wings of private developers.
With 90,000 hutments,Dharavi has been divided into five sectors for redevelopment.These were up for bids to seven shortlisted companies.
Minister of State for Housing Sachin Ahir said,The Chief Minister has asked us to see how the role of MHADA can be increased.It had proposed to redevelop one of the five sectors.It may not be possible for MHADA to take up all five,but we are looking at alternative models.
In its new avatar,there is a strong possibility of MHADA becoming the nodal agency for all five sectors and overlooking their redevelopment,with the role of developers reduced to only construction on a contract basis.Looking at the magnitude of the project,we are also exploring the joint venture route, said Ahir.In this,MHADA could have a significant stake in each of the sectors.A certain proportion of the houses constructed in the free sale component may also fall in its kitty.Ahir adds that any decision regarding this will take at least two-three months.
BLOW TO BUILDER LOBBY
The revamp is being seen as a big blow to the builder lobby which was banking on the Dharavi goldmine to rake it in.According to broad statistics,the existing slum dwellers will have to be rehabilitated on 3 crore sq feet with necessary infrastructure,while 4 crore sq feet will be the free sale component in the project.The cost of construction for all 7 crore sq feet,other rehabilitation costs on the three crore sq feet meant to rehabilitate slum dwellers,infrastructure and the cost of decade-long maintenance expected from the builder is pegged at Rs 20,000 crore.After subtracting this entire cost,even on a conservative figure of Rs 11,000 per sq feet,which government calculations had earlier assumed,the builder would lock in a profit of Rs 24,000-25,000 crore.
What the government will get is just Rs 6,000 crore,at the reserve price of Rs 2,000 per sq feet,that has been recommended in an internal report submitted by a high power committee last year.A senior bureaucrat said that they expected competitive bidding on the base price and also the government would make money on profit after tax that the builder would pay.
A developer in the race for the project,who did not want to be named said,A larger government role will mean greater interference and we really dont know how things will work out.
Nayan Shah of Neptune builders was more receptive to the idea.He said,Looking at the magnitude of the project,a greater government role is welcome.But its important to keep in mind that you need the private sector to play an important role for any development.