The Mumbai Metropolitan Region Development Authority (MMRDA) has kickstarted the process of availing a Rs 4,000 crore loan. The loan will be used to fund the redevelopment project of Ramabai Ambedkar Nagar, a sprawling 75-acre slum area situated off the Eastern Express Highway at Ghatkopar. To find this project, MMRDA has announced an expression of interest (EOI).
Project Development and Fund Utilization
Metropolitan Commissioner Sanjay Mukherjee has revealed that the loan amount will be utilized for all aspects of the redevelopment project. MMRDA has already prepared a detailed project report for the development work. The terms and conditions for the loan will be made public by MMRDA on February 5th, and it is expected to have a repayment period of 15 years.
Rehabilitation and Benefits
MMRDA stated that this project will provide rehabilitation for approximately 16,575 slum dwellers. Additionally, around 5,000 more tenements will be available for those affected by other ongoing projects. The Slum Rehabilitation Authority (SRA) will conduct a survey of slum dwellers and will be responsible for handing over possession of the vacant land to MMRDA. The entire project is expected to take three years to complete from the day the land is handed over by SRA.
Expansion of MMRDA’s Role
Commonly known for its role in developing infrastructure such as road projects, flyovers, and Metro corridors, this will be the first time MMRDA ventures into a slum redevelopment project. In the past, the development body has executed a rental housing project by granting floor space index to the builder and then handing over the housing stock to project-affected individuals.
Financial and Revenue Considerations
MMRDA estimates that it could potentially earn around Rs 1,073 crore from the sale of residential tenements if they are built by the development agency itself. However, if the sale component is sold to a developer, who will then build and sell the housing stock in the market, MMRDA could earn Rs 2,918 crore. This deal would provide significant financial benefits to the development agency, which is looking at various options to boost revenues. However, MMRDA is currently facing a cash crunch due to the substantial amount it is spending on projects this decade.
Need for External Funding
Apart from the loan, MMRDA has also requested 10% of the funds from the Union government and an additional 25% from the Brihanmumbai Municipal Corporation (BMC) to support the execution of various metro projects. These external funds are necessary for the smooth progress of the ongoing infrastructure projects undertaken by MMRDA. The redevelopment of Ramabai Nagar in Mumbai is an important step towards improving living conditions for slum dwellers and providing affordable housing options. The loan, along with external financial support, will enable MMRDA to undertake this ambitious project successfully. It is expected to have a significant impact on the city’s infrastructure and contribute to the overall development of Mumbai.
