Mumbai (Maharashtra) [India], February 28 : The Maharashtra government has introduced several measures to regulate the Transfer of Development Rights (TDR) market for the Dharavi Redevelopment Project (DRP), said a press statement on Friday.
Among the key changes, the government has capped the TDR price at 90 per cent of the ready reckoner rate to prevent any abnormal price escalation. Previously, slum TDR rates in Mumbai had reached as high as 120 per cent of the ready reckoner rate, driven by market demand and supply, the release from the Dharavi Redevelopment Project (DRP) said.
The Dharavi Redevelopment Project is one of the most ambitious urban renewal initiatives in India. While the government has capped the TDR rate, other developers who wish to use TDR for their projects must purchase at least 40 per cent of the TDR generated from the Dharavi project. This was initially set at 50 per cent during the tender stage but was revised post-tender.
"TDR procurement mandates are not new. A minimum of 20% TDR from slum redevelopment projects has been a longstanding practice. It is an essential part of any slum rehabilitation project's financial viability," DRP CEO SVR Srinivas said during a media interaction on Thursday.
Dharavi's strategic location, with railway lines on two sides, an airport in proximity, and a transmission corridor on one side, restricts in-situ consumption of Floor Space Index (FSI). To address this limitation, the government has allowed the winning developer to monetise part of the project through TDR. However, the sale of the built-up area remains a decision at the developer's discretion.
The state has also planned a dedicated Brihanmumbai Municipal Corporation (BMC) portal to track TDR availability and usage in real time. This step is aimed at improving transparency and preventing potential manipulation in the TDR market.
"Dharavi redevelopment is a vital public purpose project. Some concessions in the overall project were necessary because earlier bids had no takers," Srinivas added. "Unlike previous tenders, this time, housing will be provided for all eligible residents, doubling the number of tenements. Naturally, the cost will also increase, and TDR is part of the financial structuring to make this project viable," it said.
The project's scale is unprecedented, with an estimated Rs three lakh crore investment across Mumbai. It marks the largest investment by a private entity in a single city. However, liquidity remains a critical challenge, as few players have the financial capacity to inject funds upfront.
"TDR is useful only when you can utilise it. There are no special dispensations for the Dharavi project," Srinivas clarified.
Urban planners acknowledge the impact of such redevelopment on slums and emphasise that the city's overall progress should be the priority. "We should focus on Mumbai as a whole, rather than just the developer," he said.
With the state government's regulatory measures and financial structuring, Dharavi's transformation is set to reshape Mumbai's urban landscape.