Even as a formal nod from chief minister Ashok Chavan is awaited for the sector-wise development of Dharavi, there is already disquiet among the seven firms shortlisted for the ambitious Rs15,000 crore project.
Their main grouse is against a decision taken by the chief secretary’s committee to hike the premium amount from Rs450 per square feet to Rs2,000 per square feet. The rate was initially fixed in 2007 when the property market was on a high.
“The hike if approved makes the project economically unviable,” said Vimal Shah, managing director, Ackruti City Ltd. “Slum projects are not just about floor space index calculations. There are various cost elements like political differences, the time-consuming approval process, all of which adds to the capital costs.”
Another well-known developer, who has undertaken various slum redevelopment projects in the city, strongly believes the government would not go ahead with the hike as it is important for them to implement the project.
“Considering the political kichdi and more recently, the recession, many developers are disinterested. Slum projects are not easy to implement. A lot of money changes hands to get the support of slumlords, including political parties, to relocate the slum dwellers,” the developer said on condition of anonymity.
The developers also said that there is lack of clarity on the process of relocating slum dwellers to transit camps, and on the size of homes to be given to those eligible for rehabilitation.
According to the developers, only 35% of slum dwellers from Dharavi are eligible for rehabilitation and the government is yet to spell out plans for the thousands, who are not eligible. Under the Maharashtra Slum Rehabilitation Act, a slum dweller residing in a hut surveyed prior to January 1, 2000 is eligible for free housing.
Meanwhile, the state-appointed expert committee under former chief secretary DM Sukhtankar is still opposed to the project.
“Whatever their new plans, the government has failed to answer our basic objections. Slum dwellers should be allowed to develop their colony on their own and with a developer of their choice. The scheme otherwise will tantamount to nothing but a sophistical land grab,” said Sukhtankar.
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