The Dharavi redevelopment project will have an FSI of 4, but with a height restriction on account of proximity to the airport. The balance FSI will be used elsewhere. The housing department issued a detailed GR outlining the guidelines to be followed for the project. “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 Deputy CM Devendra Fadnavis who holds the housing portfolio.
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 approx. 240 hectares.
GR allows any TDR (Transferable Development Rights) generated through the project to be used/sold by the SPV Company being set up for Dharavi 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 Regulation 2034 makes it mandatory for all project developers to use TDR to first use the TDR generated from the Dharavi Project; a 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 use development in the Dharavi Notified Area. Foreign Companies can bid for the Dharavi project but a consortium cannot have more than two members. The basic 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 of 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 committed of secretaries headed by the 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 paid Rs 800 crore.
The successful bidder will now pay Rs 3,800 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 to be 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 7 years.
