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Maharashtra government offers Rs 1,000 crore construction rights sop for Dharavi redevelopment
The Times of India  |  May 29, 2019

TNN Mumbai

Offering a major sop to the developer of the Dharavi Redevelopment project, the state government will grant additional construction rights (known as fungible FSI) free of cost. The decision could cost the government over Rs 1,000 crore in revenue.


The government allows 0.35 fungible FSI free of cost for the rehabilitation component of all redevelopment projects. It, however, charges 50% of the Ready Reckoner Rate for the sale component in case it is a residential project and 60% of the Ready Reckoner Rate if it is a commercial project.


The Dharavi Redevelopment project, which was approved by a cabinet decision in 1999 has still not taken off because it has been found to be economically unviable.


Dharavi is in the airport funnel zone so there are height restrictions on buildings to be constructed here. “Further all FSI generated in this project is to be consumed here. The Transfer of Development Rights is not applicable here,” said an official from the urban development department, which issued the fungible FSI notification.


The decision to provide free fungible FSI was taken in December last year as the progress of the project was not encouraging, states the notification. “This notification to modify the Development Control Regulation to allow free fungible FSI was ready in March but objections/suggestions are being invited now as the model code of conduct was in force. It is being done to make the flats affordable,” said an official.


An architect-cum-town planner said that while it was possible to utilise the entire 4 FSI in Dharavi it was not possible to consume more. “The government should not have rushed into the project without doing a viability study. Offering more FSI will not make it viable,” said a source.


The government has now been promised additional railway land for Rs 800 crore which it plans to utilise for the rehabilitation component and the river front land for the sale component. The money is to be raised by MHADA and SRA. MHADA employee s have opposed the move saying the authority does not have the money to give as it has its own housing projects to execute.


Niranjan Hiranandani, president, NAREDCO said while money is not a constraint, managing people is a challenge. “Dharavi has residential, commercial and industrial units. It’s a country in itself. Even to rehabilitate all of these temporarily is a complex task,” he said. Another architect said the slums are now 2-3 storeys high and redevelopment would be a huge problem given the eligibility issue. All slum-dwellers up to 2000 are entitled to a free tenement and those after January 1, 2000 till 2011 need to pay a transfer fee.


Government officials said a scrutiny is under way of the highest bid, made by Dubai based SecLink Group, a consortium that bid Rs 7,500 crore.