Mumbai: State Cabinet Approves Acquisition of Salt Pan Land for Dharavi Redevelopment, Affordable Housing
Mumbai, 1st October 2024: The state cabinet approved the acquisition of 255.9 acres of Union government-owned salt pan land in Mumbai on Monday, for an affordable housing scheme aimed at benefiting economically weaker sections.
In February this year, the cabinet authorized a proposal to request the Union government to transfer salt pan land for the Dharavi Redevelopment Project on a 99-year lease.
This land, situated between Kanjurmarg, Mulund, and Bhandup, will be handed over to Adani Realty, which is leading the Dharavi Redevelopment Project (DRP). The project will provide rental housing to ineligible slum dwellers from Dharavi.
Previously, the former Uddhav Thackeray-led government had proposed to use part of this land as a Metro car depot, intending to relocate the shed from Aarey to Kanjurmarg. However, the Central government asserted ownership of the Kanjurmarg salt pan land, and a court order has stayed the transfer of the 102-acre plot to the Mumbai Metropolitan Region Development Authority (MMRDA).
According to Monday’s cabinet decision, the state government had earlier written to the Centre to enable the lease transfer of 255.9 acres of saltpan land. Upon receiving approval from the Centre, the Additional Chief Secretary of the housing department was authorized to finalize the lease.
The state government will recoup the cost of the salt pan land from the Special Purpose Vehicle (SPV), Adani Realty, which will make the payment to the Centre. Additionally, the SPV will bear the costs of rehabilitating the workers currently residing on the saltpan land. The Dharavi Redevelopment Project will manage the land for rental housing, slum rehabilitation, and affordable housing initiatives targeting economically weaker sections.
The 255.9 acres to be transferred include 120.5 acres at Kanjurmarg (Arthur Salt Works Land), 76.9 acres in Kanjurmarg and Bhandup (Jenkins Salt Works Land), and 58.5 acres in Mulund (Jamasp Salt Works Land).
The state has previously announced that ineligible Dharavi residents will be accommodated in rental housing projects. Officials estimate that between 3.5 to 4 lakh people, who do not qualify for rehabilitation due to residing on mezzanine and upper floors of slum structures, will receive rental housing. Approximately 50,000 families will be provided with affordable housing, while 1.5 lakh migrants will have access to affordable shared rental accommodations.
Furthermore, the state cabinet has approved the implementation of an affordable rental housing scheme for Dharavi’s ineligible slum dwellers. The Dharavi Redevelopment Project will conduct a survey to identify eligible and ineligible residents and determine the land needed for rehabilitation.
An official emphasized that, while executing the scheme, it is vital to ensure that no financial liability falls upon the state government under the credit-linked subsidy. The liability will remain with the SPV, and this policy will not apply to other projects, as per the state cabinet’s statement.
Concession on Payments
The state cabinet also approved a concession on land premium payments to MMRDA to accelerate the slum rehabilitation project in Ramabai Ambedkar Nagar, Kamrajnagar. Based on the ready reckoner rates for the 14 hectares of land in Kurla, MMRDA will be permitted to defer the initial 25% premium payment and instead pay from the project sale proceeds after its completion.
