Andhra Pradesh to Replicate Dharavi Slum Redevelopment Model
Andhra Pradesh is launching a pilot slum redevelopment project in Visakhapatnam, inspired by Mumbai's Dharavi model. The initiative aims to use private sector investment and development rights to upgrade informal settlements and provide modern housing.
Key takeaways
- Andhra Pradesh will adopt a slum redevelopment strategy inspired by Mumbai's Dharavi model.
- A pilot project is planned for the Velampeta slum in Visakhapatnam, utilizing a public-private partnership.
- Private developers will fund and execute the project in exchange for Transferable Development Rights (TDR).
- Special building rule relaxations and exemptions have been approved to facilitate the redevelopment.
- The state aims to expand this model to other cities after the Visakhapatnam pilot.
The government of Andhra Pradesh plans to implement a new strategy for urban slum redevelopment, drawing inspiration from the Dharavi Redevelopment Project in Mumbai. Officials have indicated that this ambitious plan involves private sector participation to transform densely populated urban areas.
A government order issued on August 7 established that this redevelopment model will initially be tested in the Velampeta slum in Visakhapatnam. This approach aims to facilitate large-scale urban regeneration by leveraging development rights, mirroring efforts seen in Mumbai's Dharavi, formerly Asia's largest slum.
What Happened
The proposed model, as outlined in a government order, will see the Greater Visakhapatnam Municipal Corporation (GVMC) redevelop the Velampeta slum. The project will be executed on a Design, Build, Finance, and Transfer (DBFT) basis. The plan includes constructing a high-rise residential complex up to 45 meters tall to accommodate 177 housing units on a site measuring 1,986.45 square meters.
A key aspect of this initiative is its funding mechanism. Instead of relying solely on government funds, the private developer selected through a competitive tender process will manage the redevelopment. The developer will receive Transferable Development Rights (TDR) in exchange for covering construction costs. The state government has permitted a maximum TDR ratio of 1:4 as a bidding parameter, allowing the bidder to quote their TDR requirement competitively.
Why It Matters
This model seeks to upgrade urban land by creating a market-driven mechanism while ensuring that current residents receive adequate housing. The Andhra Pradesh government intends to minimize direct financial expenditure from the state treasury by utilizing the value of development rights. Special relaxations and exemptions have been approved under the Andhra Pradesh Building Rules to ensure project viability. These include permissions for high-rise structures in congested zones, reduced setbacks, and a lower parking provision of approximately 10% of the built-up area, compared to the usual 22%. Waivers on certain fees and charges payable to municipal and urban development authorities are also part of the plan.
Background
The Dharavi Redevelopment Project in Mumbai involved a public-private urban regeneration mission financed by a private developer who received land incentives and Floor Space Index (FSI). This developer was responsible for clearing informal settlements, constructing free high-rise housing for eligible residents, and commercial real estate monetization.
Key Facts
- The Andhra Pradesh government will implement a slum redevelopment model inspired by Mumbai's Dharavi Project.
- The pilot project will occur at the Velampeta slum in Visakhapatnam.
- The redevelopment will be managed by a private developer on a Design, Build, Finance, and Transfer (DBFT) basis.
- The project will construct a high-rise complex to house 177 units on a 1,986.45 sq meter site.
- Developers will be compensated with Transferable Development Rights (TDR), with a maximum ratio of 1:4 permitted.
- Special relaxations have been granted, including reduced setbacks and lower parking requirements.
- The government has directed GVMC to execute the Velampeta project as a pilot for future slum redevelopment in Visakhapatnam and other state cities.
The GVMC has been instructed to complete the Velampeta redevelopment within a defined timeframe, treating it as a pilot for potential expansion across Visakhapatnam under the Visakhapatnam Economic Region Programme. This initiative could lead to widespread in-situ redevelopment, allowing residents to move into modern housing without displacement.
Furthermore, a post-allotment management framework is mandated, covering maintenance of common areas, utilities, and building upkeep before residents take possession. Compliance with fire safety, energy conservation, and other statutory requirements is also emphasized.
Looking ahead, the state government plans to extend this model to other major cities and has directed the commissioner and director of municipal administration to draft a comprehensive policy for slum and middle-class housing in consultation with relevant departments.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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