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Ramabai Ambedkar Nagar, one of the oldest slums in Mumbai, is set to be redeveloped by the Mumbai Metropolitan Region Development Authority (MMRDA) into a shiny new residential-cum-commercial zone. The slum is spread over an area of 75 acres, of which a major land parcel is set to be redeveloped for rehabilitation purposes.
Under the Ramabai Slum Redevelopment Project, the MMRDA is keen on developing a sprawling 30-acre parcel adjoining the Eastern Express Highway in Ghatkopar with the aim of extending the Eastern Freeway to Thane.
The project aims at building a total rehabilitation area of about 81 lakh square feet. This space will house about 15,000 tenements, ensuring that existing residents are adequately accommodated in the new development. Apart from this, it will generate 75 lakh sq ft of built-up area for commercial sale, with the expected revenue from this developed space being around INR 10,000 crore.
According to sources, the proposal was prepared by the CEO of Slum Redevelopment Authority (SRA) and will help MMRDA to acquire this land free of cost. As per sources, the proposal was placed before the authority meeting held in Nagpur under the chairmanship of chief minister Eknath Shinde on December 12.
With this project, MMRDA will be venturing into slum redevelopment arena for the first time. In the past MMRDA had executed a rental housing project in the Mumbai Metropolitan Region (MMR) by granting high Floor Space Index to builders.
Ramabai Ambedkar Nagar was established in 1964 after a Dalit colony in Sion Koliwada was demolished, pushing the displaced to live in a swampy area in Chembur. Dadasaheb Gaikwad, founder member of Republican Party of India, pushed the government to move the families into chawls in a composite space. This space came to be called Ramabai Ambedkar Nagar. It kept expanding as Dalit families grew. Today the area houses a population of over a lakh.
According to MMRDA, this project is a crucial step towards urban redevelopment and social improvement in a vital area of Mumbai to improve the lives of Ramabai Ambedkar Nagar inhabitants. Currently there are around 16,500 slum dwellers at Ramabai Ambedkar Nagar. For this project, MMRDA has anticipated INR 4,000 crore for building rehab housing and developing infrastructure.
The authorities expect revenue of INR 1073 crore from the sale of residential units, while commercial hubs will fetch higher revenue. However, sources suggest that it will be able to earn INR 2,918 crore if the sale component is sold to a private developer. With the overall revenue estimated at INR 10,000 crore and the estimated cost at INR 4000 crore, the project is not only viable but also potentially profitable for the MMRDA.
The redevelopment will also enable MMRDA to generate funds for its various big ticket infrastructure projects. MMRDA is facing a cash crunch on account of these large projects, which are currently underway, and incur a cumulative cost of nearly INR 75,000 crore.
Given these projections, MMRDA is exploring financing options to ensure the financial stability of the project and to expedite its development. One strategy under consideration is to seek debt financing, where the entire project would serve as collateral. As per an official, since the value of the project is more than double the debt value, it makes for a secure option for lenders.
The bidding process is much anticipated given the scale of the project. The bids evaluation will vary over various factors such as amount of loan, interest rate, and any upfront fees proposed by the bidder. The project demonstrates MMRDA’s dedication to sustainable urban development and is in line with the larger goal of developing well-planned urban areas that meet the changing needs of a growing city.
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