Dhārāvi: Developing Asia’s Largest Slum Case Solution

Introduction

The human settlement program initiated by the United Nations defines the slum as an area that consists of two or more characteristics, such as the insufficient access to pure and safe water, insufficient access towards cleanliness, poor housing societies and residential structures as well as  overloading residential status along with the high insecurity.

Mumbai is considered to be one of the biggest city in the world, which is the most populated and has many slum dwellers i.e.approximately 5.82 million, which is almost 49% of the total city population.

Dharavi Redevelopment Project (DRP) is a motivated plan to convert the surroundings of Dharavi into the anticipated residential and commercial territory. The project requires an estimated cost of around 3 billion United States’ dollars by proposing the idea of developing the partnership between the Indian Government and the Private Developers. As it has been measured that the property prices in India are among the world’s highest property prices, which makes the scheme more profitable, even after providing free housing to all the existing residents of Dharavi, along with better facilities and an upgraded infrastructure in the same residential area.

Dharavi is considered to be one of the attractive areas that has a commercially and residentially substantial  location. Dharavi is located about twenty minutes away from the airport. In addition to this, it is located between two main railway lines and is also close to the highways. Due to it being nearby all the facilities, Dharavi’s location can be considered as the prime location and if it get reconstructed, the value of Mumbai city would increase and Dharavi could then be considered as one of the best colonies with all the facilities in the Mumbai city.

Problem Statement and Issues

The main problem which is being faced the Dharavi Redevelopment Project (DRP) is related to the uncertainties of future political conditions in India, because of the upcoming elections. Apart from the upcoming elections, the developers of the DRP are also uncertain about the project,because there are too many confusions related to the win in the elections that whether the existing congress party would remain in the government and senate or the opposition party named Shiv Siena would win the elections and change some political conditions in Indian Government in order to change the Indian Industrial Economy.(LAKSHMI IYER, 2011).

Private developers are worried that if the opposition government wins the elections then the level of support in Dharavi Redevelopment Project (DRP) would remain at the same level or the re-development plan would have an obligation to be discontinued by the authorities for the purpose of supporting their own benefits. Due to these political points; the DRP project has greater uncertainties while continuing this project. (IYER, ARORA, & MACOMBE )

Besides this main problem, there are also a number of issues that can negatively affect the accomplishment of this project, because the private developers of the project are unable to speak about the business necessities of these people. Although, they have revised the plan and have provided certain extra spaces to the households for executing their business activities, but it is still very difficult for them to fulfill the needs of the entire area’s population.

Most of the industries in Dharavi are ecologically polluted; therefore, it would also pose a number of problematic issues to the developers involved in this project, because the residents of these areas and the owners of such industries have a high political connection with the major political parties of the country. Another problem associated with the long duration of the projects is that the slum re-development program would be completed in 5 to 7 years’ time period, which is the major threat to the success of the project because in a country like India, there are a lot of uncertainties regarding the future currency fluctuations, economic crisis and the future political crisis.

One of the main issues is that how many numbers of families would be a part of redevelopment plan, and if the new government get selected, would the project get same significant favor or would it face problems and get delayed.

Risk Assessment and its solutions

Some of the risks associated with the projects are dependent on the uncertainty about the future. The future uncertainties are comprised of political uncertainties, interest rate uncertainties and  increase and decrease in the prices of real estate and the number of families which have to be catered in the redevelopment program and provided with free housing.

In order to eliminate the uncertainty factors, different surveys have been conducted in order to improve the evaluation as well as to measure the success of the project. In order to eliminate the uncertainty about the number of families that are going to be a part of redevelopment, the socio economic survey has been conducted,according to which the number of families that would be a part of redevelopment plan is 90,000………………

 

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