“Explore MMRDA step into slum redevelopment, securing a significant loan for the Ramabai Nagar project in Mumbai”
The Mumbai Metropolitan Region Development Authority (MMRDA) is in the process of securing a loan of Rs 4,000 crore for the redevelopment of Ramabai Ambedkar Nagar, a 75-acre slum area in Ghatkopar. The detailed project report is ready, and the loan terms will be announced on February 5, with a repayment period of around 15 years.
According to Metropolitan Commissioner Sanjay Mukherjee, the funds will be utilized for all aspects of the redevelopment project. MMRDA aims to provide rehabilitation for 16,575 slum-dwellers and acquire 5,000 additional tenements for those affected by ongoing projects.
The Slum Rehabilitation Authority (SRA) will conduct a survey of slum-dwellers and hand over the vacant land to MMRDA, which plans to complete the project in three years from the date of land transfer. This marks MMRDA’s first foray into a slum redevelopment initiative, having previously focused on infrastructure projects like roads, flyovers, and Metro corridors.
In the past, MMRDA implemented a rental housing project in the region, providing floor space index to builders. The housing units were then allocated to project-affected individuals. The current proposal, discussed in a meeting chaired by Chief Minister Eknath Shinde on December 12, estimates potential earnings of Rs 1,073 crore if MMRDA builds residential tenements. However, the agency could generate Rs 2,918 crore if it sells the development rights to a builder who would then construct and sell housing units in the market.
This move is seen as a financially beneficial step for MMRDA, addressing its cash crunch amidst substantial spending on projects in the coming decade. The development authority has also requested 10% of funds from the Union government and an additional 25% from BMC for various metro projects.