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WITH 52% OF THE CITY IN SLUMS, BUILDERS EYE ON SRA PROJECTS – SAYS REPORT

dharavi-1Looks like the future city of Mumbai is going to rise from today’s slums. Fifty-two per cent of the total development projects are in shanties and builders are naturally banking on them for high returns. Mumbai’s Shanghai dreams are piggybacking on its shanties, literally. With not much land left for development, the city developers are largely banking on Slum Rehabilitation Authority’s redevelopment projects, which constitute 52 per cent of the total development projects currently underway in the city, a recent report said. It also said that around 2,10 lakh families (approximately 15 lakh people) residing in slums are set to be rehabilitated, opening up a huge area for development considering that around 55 per cent of the city lives in slums. Although Mumbai is spread across 468 sq km, only 90 sq km is actually usable – since the rest is covered by forest land, Coastal Regulatory Zones, salt pans and other no development zones. The total land available for Slum Rehab projects in Mumbai is 8,600 acre, against 4,500 acre potential of MHADA colonies and 200 acre available under mill and factory lands. In case of MHADA colonies and mill lands, the cost of land acquisition is much higher, making land under SRA an obvious choice for developers. Sensing this potential, big developers have been making a beeline for SRA projects. Though the entry barriers are high in these projects, the developer makes a profit of 50-75 per cent as opposed to 20-40 per cent in other projects.

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