The Maharashtra government has cleared a Rs 5,600 crore (Rs 56 billion) redevelopment plan for the Dharavi region in Mumbai.
The Dharavi area, spread over 174 hectare, houses 70,000 hutments. The plan envisages the development of nine zones, for which the developer would be eligible for a higher floor space index of four instead of the prevailing two in the region.
Maharashtra Chief Minister Sushil Kumar Shinde said: "We will be inviting global tenders for the development of the nine zones in the Dharavi region. The first phase of the redevelopment will focus on rehousing the residents of the 70,000 hutments."
The developers of the project will be handed over transferred development rights in lieu of free housing for slum dwellers created by them anywhere north of the Dharavi region.
Initial work will commence on the state government and civic administration owned land. In case of private-owned land that is encroached upon by slum dwellers, the state government will acquire the land under the Hutment Act, 1971.
Adequate provision for creation of hospitals, schools, entertainment centres, parks and other support facilities within the redeveloped Dharavi region will be provided by the developers.
A committee headed by the chief secretary of Maharashtra will pen the development model that will be followed.