For the first time, MMRDA will start slum redevelopment project in Ghatkopar East
Mumbai: For the first time, the Mumbai Metropolitan Regional Development Authority (MMRDA) will step into a slum redevelopment project. With the aim of extending the Eastern Freeway to Thane, MMRDA will redevelop 75 acres of slum area at Ramabai Ambedkar Nagar in Ghatkopar East. Since a part of the freeway extension passes through Ramabai Nagar, the MMRDA has decided to acquire slum land.
In the past, MMRDA had executed a rental housing project in the Mumbai Metropolitan Region by offering high floor space index to builders.
Redevelopment project to raise funds for MMRDA
The redevelopment will also enable MMRDA to generate funds for its various mega infrastructure projects including the Mumbai Trans Harbor Link (MTHL). It is well known that MMRDA is currently facing cash crunch due to these ongoing projects under its jurisdiction.
According to sources, the proposal was prepared by the CEO of the Slum Redevelopment Authority and it will help MMRDA acquire this land free of cost. Sources say that this proposal was placed in the authority meeting held in Nagpur on December 12 under the chairmanship of Chief Minister Eknath Shinde.
Target to rehabilitate 16,575 slum dwellers
MMRDA says it will rehabilitate 16,575 slum dwellers and also build 5000 more houses for project affected people.
According to MMRDA’s estimates, it will generate revenue of ₹1,073 crore from the sale of residential units. However, sources reveal that if MMRDA chooses to sell the sales component to a private developer to build and market its housing stock, MMRDA will stand a chance of earning ₹2918 crore.
The deal assumes significance as MMRDA is looking for ways to increase its revenues as it has its hands full in several big infrastructure projects like metro lines and MTHL. Sources say MMRDA will bear the cumulative cost of around ₹75,000 crore on the 10 metro rail projects except Metro Line III (Colaba-Bandra-Seepz) and Metro Line I (Versova-Andheri-Ghatkopar). He has sought 10 percent funds from the Center and 25 percent funds from the Mumbai Municipal Corporation.
The authority has also appointed SBI Capital Markets to raise the loan. An amount of ₹28,705 crore has been earmarked for various projects in 2023-2024, including the Mumbai Trans Harbor Link, Metro Corridor, Versova-Vasai Sea Bridge, underground road section between Eastern Freeway and Marine Drive.
