Projects Info | 30th June - 6th July, 2008

Focus

DHARAVI REDEVELOPMENT PROJECT

Makeover bid

The perils of urbanisation exist in the growth of slums or what is called jhuggis in local slang. India is marching ahead in its quest for a double digit growth rate for the last 4 to 5 years. Industrial and tertiary sector are attracting more and more rural folks to the greener pastures of their urban cousins. People from rural areas and smaller towns are migrating to metro cities and the emerging growth centres all across India. Due to inadequate housing and other related infrastructure facilities in place. This leads to development of small and large pockets of slums. These slums are generally equipped with bare minimum means of meeting the needs of the residents. Politicians exploit this phenomenon to build a vote bank. Builders eye the same as an opportunity to cash on in the future. The Government treat this as another speed breaker in the path of development and a question mark on their abilities to meet the basic minimum needs of its citizens. Mumbai, the financial capital of India is plagued with the problem of slum rehabilitation for more than a decade or so. Around 50 to 60 per cent of 18 million plus population resides in slums. Dharavi is one such slum pocket located in the heart of Mumbai. Dharavi with more than half a million population occupies more than 200 hectares of land and is located near Mahim and Bandra and on its northern side flows the Mithi river. Dharavi boasts of a mini economy, thriving small scale industry comprising of mainly leather goods industry, garments and plastic items. Due to lack of proper and adequate civic amenities, it is a case for immediate and planned makeover. The Government of Maharashtra has recognised the need for the makeover way back in 2003, when it accepted the plan prepared by Architect, Mukesh Mehta albeit with some modifications. The GoM is implementing this project through the Slum Rehabilitation Authority (SRA), according to the norms of S R Act of 1971.

Dharavi Re-development Project (DRP)
DRP as the name implies is about redevelopment of Dharavi. The government proposes to use land as a resource for development and use private developers for implementation of the scheme. DRP objective is multi pronged. The first and foremost is the rehabilitation of the slum developers in a self contained 225 sq ft carpet area tenement free of cost. The slum structure existing as on 01/01/2000 are eligible for rehabilitation. The cost of construction of the rehabilitation tenements is cross subsidised from the sale of free sale tenements in the open market.

The selected developer for DRP is entitled to free sale component in proportion to the rehab component. A sum of Rs 20,000 per tenement will be recovered from the developer for subsidising the monthly maintenance of the building. Total developable land is 146 hectares (61 per cent) and for rehab purposes it’s 35 hectares (for 225 sq ft). The project guarantees the rehabilitation of all the eligible existing residences, commercial & industrial units.

DRP strategy
Dharavi to be divided into five sectors
Dharavi development to be financially viable and self sustaining
Dharavi to be developed as an entire integrated suburb with modern amenities
l Development is envisaged on the following five point program called ‘HIKES’. 1) Health – State of the art Health Care Centre. 2) Income – Income generation through supporting the Craftsmen working in leather industry, pottery, food processing industry, garments factory, gems & jewellery units etc, 3) Knowledge through education to achieve 100 per cent literacy. 4) Environment sensitive and 5) Socio-Cultural development.

The existing slum rehabilitation schemes will be utilised for implementation of the project. A master plan has been created for Dharavi, substantial freedom is given to the developers to decide the planning of each sector. They will have to configure the use of the commercial, rehabilitation spaces etc. The plan is in sync with the City Development Plan (CDP). Infrastructure issues such as transportation, water supply and environment are embedded in the plan.

Status
The SRA had invited Expression of interest (EOI) on 30th May, 2007, wherein 101 bidders participated in the project. Out of this 19 bidders were short listed and tender docu-ments were issued. Bid submission date is extended upto 31st July, 2008. The project will take 7 to 8 years to complete from the award date. So far, the project is stucked due to the FSI issue and demand for more rehab space by the slum dwellers.The government is in favour of increasing the floor space index (FSI) from 4 to 4.5, but so far has failed to reach a consensus in this regard. NGO’s and other slum developers groups are demanding a tenement of 269 sq ft in place of 225 sq ft.

Impact on real estate
This project will release vast stretch of land for housing and commercial purpose at a time, when the existing supply is about to be dried up. This will free up huge chunk of real estate space and will have a direct impact on the spiralling real estate prices in Mumbai. This project will help the government to set up delivery mechanism to ease out congestion in the city. This project will set a new trend for high quality develop-ment of international standard in Mumbai. DRP will also server as a model solution for the growing slum problem across major and emerging cities of India.


Project Facts
Implementing Agency
Slum Rehabilitation Authority (SRA)
Consultants
Mukesh Mehta, Architect, MM Consultants, Mumbai
Area
212 hectares

Completion
Period of 7 to 8 years

Cost
Rs 13,000 crore

Status
19 bidders in fray, bid deadline extended to 31st July, 2008. Developers not in favour of providing 269 sq ft rehab space in place of 225 sq ft as envisaged in the original plan. Raising of FSI of 4 to 4.5 is government predicament.


National Urban Housing
and Habitat Policy 2007

The policy seeks to enhance the spotlight on 'habitat' with a 'Regional Planning approach' as well as further deepen the role of Government as a 'facilitator' and 'regulator.' The policy lays emphasis on earmarking of land for the EWS/LIG groups in new housing projects and intends to provide affordable housing to EWS and LIG of the population.

Housing stock
The housing stock in India stood at 50.95 million for 55.8 million urban households as per 2001 figures. According to the Census 2001, 61.82 million persons or 23.1 per cent of the urban population resides in slums. The quality of housing stock in slums is extremely poor and is deficient in basic services such as potable water, sanitation, sewerage, storm water drainage and solid waste disposal.

Housing needs
The magnitude of housing shortage was estimated by a Technical Group in the context of formulation of the 11th Five Year Plan. The Technical Group estimated the housing shortage at the end of the 10th Plan to be around 24.7 million for 67.4 million households. The Group further estimated that 99 per cent of this shortage pertains to EWS & LIG sectors. During the 11th Plan, the Group estimated that the total housing requirement (including backlog) will be to the tune of 26.53 million units for 75.01 million households. Whereas more than 23 per cent of the urban population resides in slum (Census: 2001), a much higher proportion of the urban population of metropolitan cities lives in slums; it is estimated that 55 per cent of the population of Mumbai lives in slums.

Eleventh plan projections
The Working Group on Urban Housing pertaining to the 11th Plan made different assumptions on unit cost of construction of houses in million plus cities and other urban areas for estimating the investment required for overcoming the housing shortage. The total estimated investment for meeting the housing requirement upto 2012 was estimated to be of the order of Rs 3,61,318.10 crore consisting of Rs 1,47,195 crore for mitigating housing shortage at the beginning of 11th Plan and Rs 2,14,123.10 crore for new additions to be made during the 11th Plan period (this includes construction of pucca houses & upgradation of semi-pucca and kutcha housing units.

Housing schemes
The National Slum Development Programme (NSDP) had provision for adequate and satisfactory water supply, sanitation, housing, solid waste management, primary and non-formal education. The scheme provided additional central assistance to States to supplement the resources of the State Government for provision of basic infrastructure and services in slum areas. The Two Million Housing Programme (TMHP) was launched with the objective of 'housing for all' with particular emphasis on the needs of economically weaker sections and low income group categories. The Valmiki Ambedkar Awas Yojana (VAMBAY) aimed at providing subsidies for construction of housing and sanitation for urban slum dwellers living below poverty line in different towns/cities all over the country.

*Credits: Sandeep Ravidutt Sharma, Foundation of Infrastructure Research Studies Training (FIRST)


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