MUMBAI: The slum pockets of the Shivaji Nagar and Baiganwadi areas in Govandi, which have the lowest Human Development Index (HDI) as per BMC’s 2014 data, have no takers for the redevelopment project.
The Brihanmumbai Municipal Corporation (BMC) floated a tender for the redevelopment of these areas over 2 months ago, on May 14. None of the developers have shown interest in taking up the project.
The BMC undertook the redevelopment of 64 slum plots on its land and invited bids to redevelop 47 slum pockets across the city. “We received proposals for 29 slum pockets across the city, excluding 18 locations of the M-East ward, which cover Govandi and Shivaji Nagar,” said an official working on the project.
“We are not sure why we did not get a response from the developers for these sites, but there is a possibility that it doesn’t have enough profit margins as compared to other places for which tenders were floated,” they added.
Call for fresh bids
The BMC invited bids for the redevelopment of the slums on the 18 plots, which are occupied by 22,587 structures. Sanjog Kabre, Deputy Municipal Commissioner, said, “We will invite fresh bids for the same once again.”
According to the BMC officials, the state government gave them rights to redevelop slums, and at most places, redevelopment is stuck on various counts. If any redevelopment schemes are floated on the civic land, the BMC gets a premium of 25 per cent of the total plot as per the ready reckoner rate. The BMC awards the rights for redevelopment to the developer who offers the maximum premium.
Explaining the lack of bids for these areas, Anand Gupta, Member of the Builder Association of India, said, “The developers who redevelop these slums will not get any funds from the government agency; they need to invest from their own pockets. More importantly, the commercial value of this area is very low, which is the prime reason. Another aspect is the connectivity issues—the railway station is far and there is no metro route there either.”
“It is obvious that buyers will prioritise locations which have good schools, recreation areas, and good connectivity. These areas lack such basic facilities,” he added.
Elaborating more on the less profit margins on these pockets, Prashant Thakur, Regional Director, ANAROCK Group, said: “Due to inadequate civic amenities, high pollution, health hazards from the adjacent Deonar dumping ground, and poor infrastructure, developers are refraining from developing pockets of Govandi and Shivaji Nagar.”
“The region is less appealing for investment and redevelopment due to concerns regarding transparency, land reservation policies that restrict profitability, and the complexities of managing densely populated tenement pockets,” he added.
