Friday, July 31, 2009

DHARAVI – SLUMDOG TO MILLIONAIRE WILL TAKE MORE TIME

By Ruma Dubey

Murugan at Dharavi had the last laugh. A few months back, when asked as to what he thought about the redevelopment plan in his area, he laughed aloud and said, “Kuch nahi hoga. Pehla sab builder came running. Then America gira. And then sab builder bhi bhaag gaye! Kya hoga, madam, kuch nahi hoga, aap dekhna!

Looks like the humble Murugan, working in one of the leather showrooms there had a better picture of reality than us. Yesterday was the last date for the submission and opening of financial bids for Dharavi Redevelopment Projects. Now that too has been deferred. The new date? The Govt is not quite sure when as this is send time this has happened. Earier, the deadline was July 20th but as the government could not finalise the final notification for the project and some developers asked for the extension, it was extended to 30th July. The reason this time? Same old reason – not yet finalized the development control regulation for Dharavi Project.

This Development Control Regulation is to be issued by the Govt of Maharashtra and this is what is often quoted as the reason for the delay. But those in the know say that it could be two other reasons - first and most important, the reluctance on the part of the builders to come and get into the project now. Though the developers have blamed it on the monsoons, clearly, in the current scenario, they just do not want to take this up.

Most of the developers feel that this is not the right time to develop this expensive project, billed at around Rs.15,000 crore as many are facing a situation of cash crunch. Starting with 19 shortlisted bidders, it has now come down to consortia of 14. There are many who have pulled put from the project. Akruti City had to form a new partnership with DLF after its partner, Limitless Llc of Dubai pulled out. L&T and Godrej Properties opted put. A Canadian realty company – Potential Group also got out of the project. The JV between Runwal Group and Capitaland is yet on unchartered territory, they are yet to decide – to go ahead or opt out. Also hanging in fire is the JV between HDIL and Lehman Bros which filed for bankruptcy.

Then there is also the problem coming in from the Govt appointed committee which is looking into the planning and implementation of the Dharavi project. In a report to the Chief Minister of Mumbai, this committee has stated that redevelopment will increase density in the area beyond practical liability. Actually the real crux of the matter is something else. There are currently around five lakh residents in Dharavi. And after they are given tenements, the vacant area will be developed by the developers for commercial use. This is where the entire lure lies for these developers is. No one is there to beautify the city or doing redevelopment out of goodwill; every developer is out there because he can lay his hands on prime property, which could be a huge earner. And it is this issue, where the committee feels that the state Govt will make money by giving this land to developers which is raising the hackles.

Well, there is no doubt that redevelopment will happen but given these delays, one wonders if the approvals would actually happen once the realty market improves. It would seem like a nice coincidence. Let us wait and see when the next date will be given. Or else take Murugan’s advice, “Apun ka Dharavi ab world famous hai! Pura world ka log aata hai, to see our slums. Govt ko bolo, isko world heritage site banane ko!”

WHAT EXACTLY DOES THIS DHARAVI REDEVELOPMENT MEAN?

Ø Rehabilitation of 57,000 families,

Ø Development of 30 million sq ft of facilities such as educational institutions and hospitals

Ø Development of 40 million sq ft for commercial sale.

Ø Each family to be allotted a self contained house of 225 sq.ft. carpet area, free of cost.

Ø During the implementation of this project, Dharavi residents will be provided with transit tenements; developer will bear the cost on account of rent of the transit tenements.

Ø Dharavi has been divided into 10 sectors and these will be developed by different developers.

Ø The total duration of this project is expected to be of 5 to 7 years.

Ø Rehabilitation building will be of 7 storeys.

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