MUMBAI: The slum areas of Shivaji Nagar and Baiganwadi in Govandi, identified as having the lowest Human Development Index (HDI) according to BMC’s 2014 report, have attracted no interest for a redevelopment project.
The Brihanmumbai Municipal Corporation (BMC) issued a tender for the redevelopment of these regions over two months ago, on May 14, but no developers have expressed interest in the project.
The BMC initiated the redevelopment of 64 slum sites under its jurisdiction, inviting bids for 47 slum areas citywide. “We have received proposals for 29 locations, but none from the 18 sites in the M-East ward that encompass Govandi and Shivaji Nagar,” an official involved in the project stated.
“We are uncertain about the lack of response from developers for these sites, but it’s possible that the profit margins are not appealing compared to other areas where tenders are available,” they added.
Open Call for New Bids
The BMC has reopened bids for the redevelopment of 18 plots occupied by 22,587 structures. Deputy Municipal Commissioner Sanjog Kabre remarked, “We will issue fresh bids for these sites.”
According to BMC officials, the state government has authorized them to redevelop slums, yet many projects hit roadblocks for various reasons. When redevelopment plans are made on civic land, the BMC collects a 25% premium based on the standard plot rate, awarding rights to the developer who offers the highest premium.
Anand Gupta, a member of the Builder Association of India, elaborated on the lack of bids: “Developers redeveloping these slums must finance the projects themselves, as there are no government funds available. The commercial value in these areas is significantly low, which is a major deterrent. Additionally, connectivity is poor, with the nearest railway station far away and no metro access.”
“Naturally, buyers prefer locations that have quality schools, recreational spaces, and good accessibility, all of which are lacking here,” he added.
Prashant Thakur, Regional Director of ANAROCK Group, further explained the unappealing profit margins in these neighborhoods: “Inadequate civic amenities, high pollution levels, health risks associated with the nearby Deonar dumping ground, and subpar infrastructure discourage developers from investing in Govandi and Shivaji Nagar.”
“This area is less attractive for investment and redevelopment due to transparency issues, land use policies limiting profitability, and the complex management of densely populated tenement areas,” he added.
