The Mumbai Metropolitan Region Development Authority (MMRDA) has formally proposed to the state government a waiver of land premiums associated with the Ramabai Ambedkar Nagar slum redevelopment project.
This initiative, aimed at revitalising a significant portion of Mumbai’s Ghatkopar area, requires an exemption from the 25 per cent ready reckoner (RR) rate normally applicable to government land transactions. The Ramabai Ambedkar Nagar Slum Redevelopment project covers an area of 331,495.44 square metres. This land is divided between state government ownership and private holdings, with the MMRDA needing around 40,000 square metres of the government-owned land to advance the project. The waiver of these charges, which could amount to several hundred crores, is crucial for ensuring the financial viability of the redevelopment.
A senior official from the MMRDA highlighted that, as a government-led initiative, the project should ideally benefit from the land being provided at no cost. The proposal also requests exemptions from development charges and other taxes to keep the project financially feasible. The waiver would support the project’s goal of relocating approximately 16,000 slum residents and facilitating the extension of the Eastern Freeway from Ghatkopar to Thane. The redevelopment plan involves a joint venture between the Slum Rehabilitation Authority (SRA) and MMRDA. The SRA is responsible for surveying and determining the eligibility of slum dwellers for relocation, a critical step before MMRDA can commence construction. MMRDA has already appointed a project management consultant and architect and secured a INR 4,000 crore line of credit from three Indian banks at an 8 per cent interest rate.
Upon receipt of the land, MMRDA will begin constructing rehabilitation buildings. The government land will accommodate 7,000 new tenements, while the remaining slum dwellers will be rehoused on private land. The development will also include commercial and residential projects on the remaining land. The entire redevelopment process is anticipated to be completed within three years of the land handover. The MMRDA’s request for a land premium waiver is currently pending review by the state government’s Cabinet. This decision is critical as the authority will only be able to apply for environmental clearances and building permits once the land has been officially transferred.
