Mulund Dumping Ground Land Lease for Dharavi Project Cleared by BMC Panel

Mumbai, October 17, 2024 – The Brihanmumbai Municipal Corporation’s (BMC) Improvement Committee has given the green light to a five-year lease of approximately 15 acres of reclaimed land at the Mulund dumping ground to the Dharavi Redevelopment Project (DRP). The decision, taken on Friday, is expected to generate around Rs 103.47 crore in revenue for the civic body.

The leased site will be used to set up a casting yard, a precast manufacturing unit, and a ready-mix concrete (RMC) plant to support the massive redevelopment of Dharavi, one of Asia’s largest slums. The proposal faced opposition from Shiv Sena (UBT) and Congress corporators, while BJP representatives defended it, highlighting the project’s potential to improve living conditions for Dharavi’s residents.

Opposition and Support

BJP corporator Aneesh Makwaney argued that the slum dwellers of Dharavi have long endured poor living conditions, and the government’s efforts to provide permanent housing are long overdue. He emphasized that the land allotment followed proper procedures. Sandhya Doshi, Chairperson of the Improvement Committee, noted that all members were given a chance to voice their opinions before the proposal was approved.

Lease Terms and Financial Details

Under the approved terms, 60,703 square meters of land will be leased to Navbharat Mega Developers Pvt Ltd for five years. The site currently holds an estimated 2.5–3 lakh metric tonnes of legacy waste, which must be removed before the land is handed over. The BMC has set the rent at Rs 252 per square meter per month, with a 6% annual escalation, resulting in total projected revenue of Rs 103.47 crore over the lease period.

The developer will spend Rs 20.04 crore on site remediation, which will be adjusted against the rent. Consequently, the BMC’s net rental income will be approximately Rs 83.44 crore, with the total payment including GST estimated at around Rs 100 crore.

Conditions of Handover and Compliance

The land will be handed over on an “as is where is” basis and can only be used for the approved facilities. The developer is required to obtain all necessary clearances, process the legacy waste in accordance with environmental regulations, and install CCTV, access control systems, and other safety measures.

Value Addition: Expert Perspective on Urban Redevelopment

Urban development experts note that the use of reclaimed landfill land for redevelopment projects is a growing trend in Indian cities, offering a solution to land scarcity while addressing environmental remediation. “The Mulund lease is a pragmatic move, but the success hinges on strict adherence to waste processing timelines and environmental safeguards,” said Dr. Anjali Mehta, a Mumbai-based urban planner. “Similar projects in other cities have faced delays due to unresolved contamination issues, so the BMC’s oversight will be critical.”

The Dharavi redevelopment, which aims to replace cramped shanties with modern apartments, has been in the planning stages for over a decade. The new casting yard in Mulund is expected to accelerate construction timelines, though concerns remain about the impact of heavy truck traffic and dust on surrounding residential areas. Local residents have demanded regular air quality monitoring and compensation for any disruption.

As of now, the BMC has not released a detailed timeline for the waste removal and land handover, but the project is expected to move forward in phases over the next few months.