Three companies, Adani Realty, DLF and Naman Group, have submitted bids for the over Rs 20,000 crore Dharavi redevelopment and rehabilitation project, which may finally take off after several failed attempts over the last 15 years or so. Dharavi, in Mumbai, is one of Asia's biggest slum clusters.
Governments in Maharashtra have made at least four abortive attempts to get the project up and running in the last decade and a half, floating bids for the redevelopment.
Dharavi, spread over 300 acres, is a hub for several small-scale, unorganised industries that manufacture medicines, leather, footwear and clothes. It is located in Central Mumbai, in close proximity to the Bandra Kurla Complex, a commercial hub.
With an estimated population of 1 million, Dharavi, one of the most densely populated slums in the world, was left reeling by the pandemic. It came into the national consciousness in 2009, after the India release of the movie ‘Slumdog Millionaire’, which is partly based in Dharavi. The film won a clutch of Academy Awards as well as other prestigious awards.
Renewed redevelopment attempt
On October 1, the Maharashtra government floated a global tender for the redevelopment and rehabilitation of Dharavi after a failed attempt in 2019. Three companies have evinced interest in the project. After evaluation of the technical and financial eligibility of the bidders, one of the three companies will be shortlisted for the project by December 31.
Bid document floated by Maharashtra government on October 01.
Since 2008, the Maharashtra government has been trying to appoint a developer for the redevelopment of Dharavi, without success. It floated bids in 2016 as well but did not get a response. In 2019, fresh bids were floated and two companies, Sec-link from the UAE and Adani Group from India evinced interest. However, the bidding was scrapped owing to technical reasons.
Dharavi was one of the worst affected areas during the Covid-19 pandemic, with more than 9,000 Covid-19 cases and over 100 deaths reported. It is one of the densest slum clusters in the Asia pacific region. With the redevelopment of Dharavi, the authorities claim the lives of more than 8 lakh people will change.
Recently, amid an outbreak of measles, the Mumbai Civic Body declared that the entire population of Dharavi would be screened for the disease. As of November 20, over 215,628 people had been screened and five cases of measles had been detected.
Representational image (Image: AP)
The project is divided into two components. One is the rehab component, where the population of close to one million will be rehabilitated; the second is the sale component, where the developer will recover its construction cost and profit for rehabilitating the slum dwellers of Dharavi.
The Maharashtra government aims to finish the rehabilitation in seven years, after appointment of a developer, complete the entire project, including the commercial aspect, in 17 years.
Also read: Dharavi redevelopment & rehabilitation: Companies want project duration increased
On November 1, SVR Srinivas, CEO of the Dharavi Redevelopment Project (DRP), told Moneycontrol that Dharavi has the potential to become the next Bandra Kurla Complex (BKC). More than 1 crore sqft of construction is expected to come up over the next 17 years. Close to 70-80 lakh sq ft will be constructed for rehabilitation and the rest put for sale in the open market.
Srinivas added that Dharavi's redevelopment has to be seen from the point of formalisation of the unorganised economy — small-scale industries — adding that incentives running into thousands of crores of rupees will be given by the state government to make the project a success.
According to the authorities, the redevelopment of Dharavi is also the first step towards making Mumbai slum free. The Maharashtra government had formed the Slum Rehabilitation Authority (SRA) in the mid 1990s with this goal in mind. However, the SRA's performance since then has not been very impressive, say market sources. Since its inception (1995) up to August, 2021, 2,067 projects have been completed and 2,23,471 families residing in slums have been rehabilitated in tenements, according to the data provided in the Maharashtra Economic Survey for 2021-22.
Mumbai-based Architect Aamir Chand opines that if successful, the redeveloped Dharavi could very well become the ‘Business Bay’ district of Mumbai. “It all depends on how we are interrelating the sale component of the future Dharavi,” he said.
"The slum dwellers can always be translated into “proximity of labour” and the sale component of the project can always be seen as an opportunity to expand inter-city and with cross-border relations through commercial hubs and residences offering accommodations for the same, added Chand. “Today, Bandra Kurla Complex with its scarcity of residential plots, is lacking in terms of a “Live Play Work” concept, which can very well hold true for the redeveloped Dharavi."
However, Chand added that the authorities need to be cautious when it comes to rehabilitation of slum dwellers. "Why is there no condition in the tender document of Dharavi redevelopment to provide 10 feet wide living spaces, proper widths/sizes for kitchens, toilets etc within the 405 sq ft apartments for the Dharavi citizens,” wondered Chand.
“We aim to declutter Dharavi, especially after we realised the need for space post Covid-19. Hence, these are the basics that should have been defined before finalising a developer. We need to understand that fixing details beforehand reduces the opportunity to exploit the slum dwellers.”
How does it change the Mumbai Real Estate market?
Not just Dharavi, but the areas around it in Central Mumbai will also witness a change if the redevelopment is successful, opine real estate brokers and developers in Mumbai.
“I have extensively worked in the Dharavi area and have also contested state assembly polls in 2014. The redevelopment of Dharavi in simple words means more oxygen considering the density of the slum cluster,” said Divya Dholay, a former IT employee with IBM and now Maharashtra BJP Secretary.
“For every Dharavi resident and also Mumbaikars, the tag of having one of Asia’s largest slum clusters will finally get washed away and the redevelopment will benefit surrounding areas like Matunga, Mahim, Bandra, Dadar etc. The industrial and residential composition will bring in a complete new look to Dharavi with more business opportunities," Dholay claimed.
Speaking to Moneycontrol on November 1, Srinivas said, “We cannot have it (real estate) in isolation with some projects here and there. Prosperity has to be commonly shared, and in this background, there is a rehabilitation and sale component. The transfer of development rights (TDR) market will improve due to the redevelopment of Dharavi. TDR is a good market tool that is not in a good shape now.”
He added, “A lot of things will come up in Dharavi and the segment here can be residential or even commercial. It all depends on the master plan the SPV will make, but I am sure a second BKC can come up in Dharavi.”
“In the free sale, we can or may have to go for commercial construction fully or partially. Dharavi has a lot of commercial and industrial establishments and we have to accommodate them. In addition to that, it is close to BKC and has a lot of commercial potential,” Srinivas had said.
Concerns
While the authorities maintain that redevelopment of Dharavi will change the face of Central Mumbai, slum dwellers and small scale business units are worried about being moved out of Dharavi. The residents and business unit owners Moneycontrol spoke with said that the authorities should ensure that they have complete clarity and rehabilitation is done in the same area, after providing a proper roadmap and obtaining consent.
“The redevelopment talks have been on for many years, and we are positive. However, at the same time, we want the government to take our consent and give clarity before going ahead with the plan. Until now, nothing like that has happened,” said Pravin Sarvaiya, President, Prajapati Kumbhar Samaj in Dharavi.
“Our primary concern is that we want rehabilitation in the same place. We are talking about 2,000 families that we represent that are involved in pottery-related activities in Dharavi. Their livelihood is dependent on this. Therefore, before taking any decision, the government should take our consent,” he added.
Speaking to Moneycontrol, another businessman and resident from Dharavi said, “Today, in Dharavi, people are residing in 100 to 150 sq ft homes, and the government is offering us 405 sq ft. Hence, there is no question that it is better. But the main concern is we do not want to go out. We should be getting homes in the same area, and we want the government to go ahead with any plans only with prior consent.”
“We are residing and doing our business in proximity to five to six railway stations on the local train network in Mumbai. Wherever we want to go, we reach in 30 to 45 mins. So, why would anyone want to move out from an area like Dharavi, which is centrally located. The government should go ahead with its plans but only after taking us all into confidence,” he reiterated.
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