Dharavi Project: Maharashtra Caps TDR Price At 90% Of Ready Reckoner Rate
Previously, slum TDR prices in Mumbai had surged to as high as 120% due to market demand.
The Maharashtra government has introduced new regulations for the Transfer of Development Rights market in the Dharavi Redevelopment Project. To prevent sharp price fluctuations, the state has capped the TDR price at 90% of the ready reckoner rate.
Previously, slum TDR prices in Mumbai had surged to as high as 120% due to market demand.
The Dharavi redevelopment, one of India’s largest urban renewal projects, allows the winning developer to monetise part of the project through TDR. However, other developers seeking TDR for their projects must source at least 40% from Dharavi’s TDR pool, down from the initial 50% set during the tender stage.
“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,” Dharavi Redevelopment Project CEO SVR Srinivas said on Thursday.
Dharavi’s location presents challenges for in-situ Floor Space Index consumption, as it is bordered by railway lines on two sides, an airport nearby, and a transmission corridor. While developers can sell built-up area at their discretion, TDR remains a key financial tool for project viability.
To ensure transparency, the state plans to launch a Brihanmumbai Municipal Corporation portal to track TDR availability and transactions in real time.
“Dharavi redevelopment is a vital public purpose project. Some concessions in the overall project were necessary because earlier bids had no takers,” Srinivas said.
“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.”
With an estimated Rs 3 lakh crore investment, the project is Mumbai’s largest private-sector urban renewal effort. However, liquidity remains a key challenge as few developers have the financial capacity for upfront investment.
“TDR is useful only when you can utilise it. There are no special dispensations for the Dharavi project,” Srinivas clarified.
Urban planners stress that while redevelopment impacts slum dwellers, the city’s overall progress should remain a priority. “We should focus on Mumbai as a whole, rather than just the developer,” one expert noted.
With regulatory measures in place, Dharavi’s transformation is set to reshape Mumbai’s urban landscape.
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