Dharavi redevelopment update

The Maharashtra Housing and Area Development Authority (Mhada) is set to issue bids next week to appoint a contractor to redevelop Sector 5 in Dharavi. The housing authority took the decision on Thursday at a review meeting chaired by its vice-president Satish Gavai, who has been re-appointed as officer on special duty for Dharavi. The move follows chief minister Prithviraj Chavan’s decision to revise the much delayed Dharavi redevelopment scheme and have Mhada redevelop one of the five sectors in which Asia’s second largest slum was divided. ‘‘Though global companies shied away from the project due to the recession, we hope reputed companies like Larsen and Toubro, Shapporji Pallonji will participate in it,’’ said Gavai. Mhada hopes to invite bids to appoint a project management consultant by the month end. Sector 5 of Dharavi alone has some 10,000 tenements. The project is likely to cost Rs 2,200 crore and take 5-7 years to complete. As per the roadmap drawn up by Mhada, the tenants would be temporarily rehabilitated in adjoining transit tenements. Real estate observers say it will be some time before the project takes off as evicting slumdwellers, especially those residing on the upper floors, will be a mammoth task. ‘‘The government is yet to issue a notification making ineligible slumdwellers under the January 1, 2000, cut-off date eligible for rehabilitation by payment of a transfer fee of 10% of the construction cost. The urban development department is also to issue the development control rules for Dharavi,’’ said Hukamraj Mehta, Congress district president for Dharavi. Mhada is expected to fund the project from its own budget. Once the rehabilitation of slum dwellers is partly completed, Mhada would recover the cost from the sale of vacant plots and flats in the open market.