Dharavi redevelopment project to have four FSI, says deputy Maharashtra CM

The redevelopment authority will issue global tenders next week, said deputy CM Devendra Fadnavis. On Wednesday the housing department issued a detailed GR outlining the guidelines to be followed for the project.

MUMBAI: The Dharavi redevelopment project will have an FSI of 4, but with a height restriction on account of proximity to airport. However, the balance FSI will be used elsewhere. The redevelopment authority will issue global tenders next week, said deputy CM Devendra Fadnavis. On Wednesday the housing department issued a detailed GR outlining the guidelines to be followed for the project. Global tenders next week for makeover of Dharavi The Dharavi Redevelopment Authority will issue global tenders for the integrated redevelopment of Dharavi next week, said deputy CM Devendra Fadnavis who also holds the housing portfolio, on Wednesday.

The floor space index (FSI) for the project or the ratio of the developed space to the available land will now be more than 4 though there is a height restriction on account of its proximity to the airport.

"The project will not be feasible unless it is given this high FSI. No airport restrictions will be violated, and additional FSI will be used elsewhere," said Fadnavis, commenting on the plan to provide a facelift to one of the largest slum sprawls in Asia.

The housing department has issued a detailed government resolution (GR) outlining the guidelines to be followed for the redevelopment project, which will impact nearly a million residents and workers spread over an area of approximately 240 hectares.

The GR allows any TDR (Transferable Development Right) generated through the project to be used/sold by the special purpose vehicle (SPV) company being set up for Dharavi's redevelopment.

As a further incentive, there will be no indexation, which means the extra FSI can be used anywhere in Mumbai city or the suburbs regardless of the ready reckoner rate.

Also, Development Control and Promotion Regulations 2034 make it mandatory for all project developers using TDR to first use the TDR generated from the Dharavi project; further 50% of TDR used for any project would have to be from Dharavi.

The premium to be paid to the SRA for the Dharavi land will be 25% of the Ready Reckoner Rate for all the land used for development in the Dharavi Notified Area.

Foreign companies can bid for the Dharavi project but a consortium cannot have more than two members. The base price for the bid is Rs 1,600 crore. The equity shareholding of the lead member of the selected bid will be 51% in the SPV.

Along with its consortium partner, the lead member will hold 80% of the equity for two years from the date of issuance of Commencement Certificate, later going down to 51%. The state government will also hold a stake in the SPV. The overall estimated cost of the project is Rs 28,000 crore, going up from Rs 26,000 crore which was the estimate in the earlier round of bids in 2019.

On September 23, the committee of secretaries headed by chief secretary Manu Kumar Srivastava approved including 47.37 hectares of railway land in the project as against 45 hectares for which the authority had already paid Rs 800 crore

The successful bidder will now pay Rs 3,800 crore__Rs 1,000 crore for 45 acres of railway land to the authority and another Rs 2,800 crore to the state as indemnity or any proportionate higher amount as per the additional land given by the railways.

The bidder will also acquire 24.62 hectares of private land within sectors one to four excluding already developed properties, states the GR.The government will also lease salt pan lands at Wadala for 99 years for the project.

The land size is around 47 acres and the authority will obtain permission from the Centre for building rental housing on it. The authority will pay compensation to the Centre for the land.

While the government has estimated that there are 58,000 slum dwellers eligible for free housing, it has also estimated that there are another 40% ineligible slum dwellers. Those ineligible will be given an opportunity to purchase flats under the affordable housing scheme by paying for the land and the cost of construction. The project is to be completed within seven years.

Source: realty.economictimes.indiatimes.com

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