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The Mumbai Metropolitan Region Development Authority (MMRDA) has begun the process of obtaining a INR 4,000 crore loan for the redevelopment of Ramabai Ambedkar Nagar, a large 75-acre slum area located along the Eastern Express Highway in Ghatkopar. MMRDA published an "expression of interest" on Saturday in order to apply for this sizeable financing for the project. Sanjay Mukherjee, the metropolitan commissioner, reaffirmed that money would be set aside for every facet of the rehabilitation project.
MMRDA has worked hard to prepare a 'detailed project report' in preparation for this ambitious undertaking. The terms and conditions of the loan are set to be unveiled by MMRDA on February 5, with an anticipated repayment period of 15 years.
The development authority aims to provide rehabilitation for 16,575 slum-dwellers, in addition to acquiring 5,000 tenements for individuals affected by ongoing projects. The Slum Rehabilitation Authority (SRA) will conduct a comprehensive survey of the slum-dwellers and oversee the transfer of vacant land to MMRDA. From the date of land acquisition by SRA, MMRDA anticipates a three-year timeline for project execution.
While MMRDA traditionally focuses on infrastructure development such as roads, flyovers, and Metro corridors, this marks its inaugural foray into slum redevelopment initiatives. Previously, MMRDA had executed a rental housing project by granting floor space index to builders, with resultant housing stock allocated to project-affected individuals.
The proposal to undertake this Slum Rehabilitation Authority (SRA) project was deliberated at a meeting convened in Nagpur under the chairmanship of Chief Minister Eknath Shinde on December 12.
MMRDA projects potential revenues of INR 1,073 crore from the sale of residential tenements if constructed by the development agency itself. However, this figure jumps significantly to INR 2,918 crore if the sale component is transferred to a developer who will construct and market the housing units independently.
This endeavor promises to be financially rewarding for MMRDA, which has been exploring various avenues to bolster its revenue streams. The development authority faces financial constraints due to the substantial expenditure anticipated for projects slated for this decade.
Additionally, MMRDA has sought financial assistance from multiple sources to facilitate the execution of various metro projects. Specifically, it has requested 10% of the requisite funds from the Union Government and an additional 25% from the Brihanmumbai Municipal Corporation (BMC).
In summary, MMRDA's pursuit of a INR 4,000 crore loan underscores its commitment to the redevelopment of Ramabai Ambedkar Nagar, aiming to provide improved living conditions for slum-dwellers while simultaneously navigating financial challenges to support its broader infrastructure initiatives.
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