HDIL to clear slums around Mumbai airport

Property developer Housing Development & Infrastructure Limited (HDIL) has bagged the bid to develop 276 acres of slum land near Chhatrapati Shivaji International Airport (CSIA) in Mumbai, from the GVK Group-promoted Mumbai International Airport Pvt Ltd (MIAL).

The project involves rehabilitation and development of slums around the airport and development of part of the cleared land. About 85,000 families now settled on the land will have to be rehabilitated. The project will be undertaken in a phased manner in 18 to 48 months.

This is one of the largest slum redevelopment and rehabilitation projects in the country being allotted to a single entity.

The Dharavi Redevelopment Project, another equally large project over 535 acres, will be divided into five sectors, each of them to be given to a separate winning bidder.

"The company is expecting revenues of Rs 15,000 crore to Rs 20,000 crore from the project in the next four to five years," sources said.

The contract was awarded to HDIL through a competitive bidding process. The MIAL had called for bids to redevelop the land and there were five players in the race including Akruti Nirman and Marathon. Mumbai Metropolitan Region Development Authority is the nodal agency for the survey and rehabilitation of slum dwellers.

Sarang Wadhawan, managing director, HDIL, said: "We consider bagging the airport slum rehabilitation project as a significant achievement. We consider it a privilege to be associated with this project and are confident of completing the same as per the guidelines laid down by the state government." Wadhawan said.

GV Krishna Reddy, chairman, MIAL, said: "We have awarded the contract to HDIL, which has past experience in undertaking slum rehabilitation projects in Mumbai and has financial capabilities to undertake a project of this size. We are committed to undertaking a model slum rehabilitation exercise in line with the policy laid down by the Maharashtra government. We are confident that this would translate into a time-bound delivery of airport development, in line with our vision for the development of CSIA."

The main attraction for HDIL is the transfer of development rights (TDRs) and land for commercial development it will get from undertaking this project. That amounts to about 70 acres for sale.

The Wadhawan family-promoted HDIL is involved in the development of commercial complexes, residential apartments, slum rehabilitation projects and infrastructure business. The company raised about Rs 1,400 crore from the market this year.

The HDIL share price lost 1.11 per cent (or Rs 8.50) to close at Rs 756.65 on the Bombay Stock Exchange on Tuesday. GVK Power & Infrastructure shares lost 3.18 per cent (or Rs 24.35) to close at Rs 741.45 in a weak Mumbai market.