Introduction

• What is Dharavi?
• Types of houses or slum?
• Location of Dharavi?
• Main problem found by the people?
A PPP For Slum Redevelopment
• Estimate Cost $3 Billion.
• Profitable Scheme even if provided free housing.
• Real estate prices in Mumbai during 2007 soared over 300%.
• Slum redevelopment was expected to take 5-7 years.
Approaches to Slum Redevelopment
New Approach
• Sectoral approach
• Incentives
• Mehta’s plan
• Earlier development model Vs New sectoral approach
• Bidding process
• Profitable opportunity for both govt. & private developer
• Political influences
Alternative Model
• Reforming restrictive land regulation
• Find alternative land to relocate & resettle
• Concession of the real right to use
Dharavi’s Residents & Businesses
• Objections raised by residents of Dharavi
• Governments perspective
• Number of families to be rehabilitated
• Area of rehabilitation
• CEPT indicated Dharavi had close to 5000 informal businesses
• 40% of total area was residential use, 11% was commercial or
industrial use, 21% was mixed residential or commercial use
Bidding for the Redevelopment of Dharavi
• EOI from private sector for Mumbai slum rehabilitation authority.
• Dharavi divided into 5 sectors.
• Developers were permitted to bid for more than one sector but the
contract is awarded for only one sector.
• Floor space Index permitted 4.0 for Dharavi.
• Financial requirements of builders.
 Risk Associated with the
Dharavi RedevelopmentProject
Financial Risk & Real Estate Recession
Phase
• Comparing real estate markets in 2007 and 2009
• Prices of real estate at +300% to -25%
• BOMT with own finance
• 3.5 million as security deposit and other financial requirements
Future Political imbalance
• 2009 Maharashtra Assembly election
• Congress vs Shivsena
Valuation risk:
• Valuing property, which is not similar in nature
• Information of housing ownership and dispute resolution
People perception risk:
• Land & Property Acquisition with redevelopment program.
• Illegal buying and selling of properties
• Dharavi Bachao Samiti
Project Execution Risk
• Rehab should proceed at the pace of FOR PROFIT apartments
• Would government ever allow this much radical change in the plan?
• Maintaining all the buildings for 15 years
Settling Down People
• Connected with who will get what
• Will there be an equal housing and commercial segment for whole
Dharavi?
Attracting privet owners to purchase
properties after DRP
• Dharavi will be integrated with Mumbai? Who will take this
responsibility?
• What if Dharavi fails to attract privet owners?