Urban News

The report, a copy of which is with Newsline, says the number of bidders should be frozen at the existing seven, but recommends a staggered bidding process, one sector at a time, instead of the seven competing for the five sectors at one go. It recommends that the 8,872 structures in 23 hectares of Sector 5 near the Mahim Nature Park be taken up first, since it is the least problematic in terms of land ownership issues and opposition to the project.

“If simultaneous bidding for five sectors is done as originally contemplated, there may be less competition and greater chance of cartelisation,” notes the report prepared by the secretaries of the housing, urban development and finance departments and the project manager of the Mumbai Transformation Support Unit (MTSU).

The report broadens the eligible criteria for re-housing to include even those who have no proof of living in Dharavi prior to 2000, but it entirely leaves out the issue of those living on the mezzanine floors. Across the total 60,000 ground-floor structures in Dharavi, only those with proof of living there prior to 2000 are eligible for free 300-sq-ft houses. “In case of families who came to Dharavi much later but stay in structures built prior to 2000, new homes will be provided at subsidised rates if they come under the definition of urban poor, and if not then at the actual cost of construction. But these are only for those staying on the ground floor,” said a government official.

According to one estimate, 25,000 families live on mezzanine floors, mostly workers in odd jobs like plastic recycling, making farsaan or leather goods.

The sub-committee estimates that developers taking up the five sectors are set to cumulatively earn an enormous profit of Rs 44,000 crore. In view of this, the report observes that the existing minimum bid price of Rs 400 per sq ft of rehabilitation area is very low and should be revised to Rs 2,000 a sq ft at least.

The report, which is now before chief secretary JP Dange, also makes a case for allowing the expert committee headed by former chief secretary DM Sukhtankar to once again present its model of self-redevelopment for Dharavi. Dange, however, said, “The expert committee has been given sufficient time. The Chief Minister who heads the housing department will soon take a decision on the report.”

SPEND A LITTLE, EARN A LOT
* Built-up area: 7 cr sq ft
* Sale component: 4 cr sq ft @ Rs 11,000, total worth Rs 44,000 cr
* Rehab component: 3 cr sq ft, cost Rs 20,000 cr
* Min govt premium: Rs 6,000 crore/sq ft
* Bid price: Rs 400/sq ft, suggested Rs 2,000/sq ft