All about the Dharavi Redevelopment Project | The Hindu

Summary

Dharavi, Asia's largest slum located in Mumbai, is home to around 58,000 families and 12,000 businesses. The Maharashtra government, in collaboration with the Union Railway Minister, has launched an ambitious project to redevelop the area. Spanning 240 hectares of land, the project, which was first proposed in 2004, has seen escalating costs, now estimated at ₹28,000 crore. The plan includes constructing new dwellings and infrastructure, with property values expected to rise by 30-40%. The state hopes to complete the project in seven years, though some companies have requested more time. A joint venture model will finance the redevelopment efforts.

Takeaways

• 🏙️ Dharavi is Asia's largest slum, located in the heart of Mumbai, and is one of the most densely populated areas in the world, housing around 58,000 families and 12,000 commercial establishments.
• 📝 The redevelopment of Dharavi has been a longstanding goal for 18 years, with the Maharashtra government finally formalizing a plan on October 18 with Union Railway Minister Ashwini Vaishnaw and Deputy Chief Minister Devendra Fadnavis.
• 🏗️ The project involves redeveloping 47.5 acres of railway land in central Mumbai, with a focus on rehabilitating slum areas and surrounding non-slum sections.
• 💰 The cost of the project has seen a dramatic increase, rising from 4,000 crore in 2004 to an estimated 28,000 crore in 2019, indicating significant investment and financial planning challenges.
• 📊 The redevelopment plan will cover approximately 240 hectares out of the 600-acre area of Dharavi, in line with the project scope outlined by the Slum Rehabilitation Authority (SRA).
• 🔗 The project includes a joint venture model, where the Maharashtra government will hold a 20% stake, while the lead bidder will manage the remaining 80% share.
• 🚧 The project will be managed by a Special Purpose Vehicle (SPV) formed by the Slum Rehabilitation Authority and the lead bidder to facilitate infrastructure and rehabilitation work.
• ⏳ The Maharashtra government aims to complete the redevelopment in seven years, but industry experts argue that a 10-12 year timeline may be more realistic due to the scale of the project.
• 💸 Property prices in and around Dharavi are projected to increase by 30-40% once the redevelopment is completed, with current values standing at 25,000 to 30,000 rupees per square foot as of 2021.
• 🌍 The redevelopment of Dharavi is seen as a critical step in addressing Mumbai's urban challenges, potentially improving living conditions and boosting economic activity in the region.

Q & A

What is Dharavi and why is it significant?

Dharavi is Asia's largest slum, located in the heart of Mumbai. It is one of the most densely populated areas in the world, home to around 58,000 families and 12,000 commercial establishments.

What is the purpose of the Dharavi redevelopment project?

The Dharavi redevelopment project aims to revamp the slum area by improving infrastructure and living conditions for the residents, with plans to redevelop both slum and non-slum sections of the area.

What is the estimated cost of the Dharavi redevelopment project?

The estimated cost of the project has increased significantly over the years, from 4,000 crore in 2004 to around 28,000 crore as of the most recent estimate.

Who signed the agreement for the Dharavi redevelopment project?

On October 18, Union Railway Minister Ashwini Vaishnaw and Maharashtra's Deputy Chief Minister Devendra Fadnavis signed a definitive agreement to move forward with the Dharavi redevelopment project.

What portion of Mumbai's population lives in slums?

As per the Slum Rehabilitation Authority, 48.35% of Mumbai's population lives in slums, which occupy about 24% of the city's total area.

What is a Special Purpose Vehicle (SPV) in the context of the Dharavi redevelopment project?

A Special Purpose Vehicle (SPV) is a separate entity formed for a specific infrastructure and rehabilitation purpose. In this case, the SPV will work alongside the Dharavi Redevelopment Authority to execute the project.

How is the Maharashtra government planning to fund the Dharavi redevelopment project?

The Maharashtra government is inviting global tenders for the project and plans to fund it through a joint venture. The government will hold a 20% stake, while the selected lead bidder will hold 80%.

What is the timeline for completing the Dharavi redevelopment project?

The Maharashtra government is optimistic about completing the entire project in seven years, starting in the next year. However, companies involved in the project have requested a timeline of at least 10 to 12 years.

What impact is the Dharavi redevelopment expected to have on property prices?

Once the redevelopment project is completed, property prices in and around Dharavi are expected to increase by 30 to 40%, from the current rates of Rs. 25,000 to Rs. 30,000 per square foot.

What challenges are associated with the Dharavi redevelopment project?

Some of the challenges include the complexity of redevelopment in such a densely populated area, the need for careful planning for slum and non-slum sections, and the time required to complete the project to the satisfaction of both developers and residents.