Redevelopment projects in city centre set to revitalize Mumbai’s real estate hopes

Three major redevelopment projects in central Mumbai are set to revitalize real estate in the city: the 97 acre government colony at Bandra, 92 acres of BDD chawls in Worli, Naigaon, Lower Parel and Sewri, and the 520 acre Dharavi.

That all these projects are being opened up in a pre-election year is being seen with suspicion by some, but state government agencies say that they will ensure they get through on time. During his recent Delhi visit, Maharashtra Chief Minister Devendra Fadnavis is learnt to have followed up on the final CRZ notification and securing 87 acres of railway land for Dharavi’s redevelopment, with positive responses from the Centre. The chawls date back to the 1920s, when the then Bombay Development Directorate (BDD) built 195 in Worli, Naigaum and Lower Parel, and 12 in Sewri to accommodate the migrant workforce of Mumbai’s cotton mills. Redevelopment had remained stuck for 21 years, however.

Now, work in Lower Parel and Naigaon has already begun, with Worli too seeing some movement. The plan is to build a few buildings initially and use them as transit camps to move people in and out as work progresses. The 15,000-odd original tenants are to get new 500 sq ft houses — the largest given in any Mumbai redevelopment project. While 68 per cent of land will be used to settle them, the rest will be open for commercial use. Though the total cost is around Rs 16,000 crore, it promises to open up the area for investment from mid-segment home buyers.

As for Dharavi, a special purpose vehicle (SPV) will be set up with 80 per cent private stake and 20 per cent government contribution. Dharavi falls under the funnel zone of Mumbai’s international airport which restricts vertical growth. The reluctance of local residents and political interests have also marred redevelopment since late 1980’s. “Contrary to earlier failed efforts.., this time we are looking at comprehensive development of the area into a business district,” said housing minister Prakash Mehta — an attractive proposition for both investors and Dharavi’s existing businesses.

The PWD has also started work on a 5-acre plot in the government colony beside Bandra-Kurla complex. Around 75 per cent of prime land next to BKC is expected to be opened up, fetching around Rs 40,000 crore to the state. The project had been stuck for a decade due to private builders’ reluctance to share profits with government, but PWD is set to complete the first phase in 18 months.