A consortium comprising Tata Projects, Capacit’e Infraprojects and China’s CITIC Construction has bagged a Rs 117.44 billion project for redevelopment of BDD (Bombay Development Department) Chawls (residential societies) in the Worli area of Mumbai.
Touted as South Asia’s largest redevelopment project, the work involves redevelopment of 26 million square feet of area, almost three times the size of Bandra Kurla Complex in Mumbai. Over 10,000 people are to be employed, and the construction is to be carried out in five phases over eight years.
The project involves 86 rehabilitation buildings of 22 floors, 10 residential sale buildings of 76 floors, and one commercial sale building of 30 floors.
More than 10,000 families would get new homes as part of the project. The Maharashtra Housing & Area Development Authority (MHADA) is the implementing agency.
“It is a most important project for Mumbai. It is a model project for chawl redevelopment,” Vinayak Deshpande, managing director Tata Projects, said.
Deshpande said this was one of the largest single-value infrastructure projects in the country. “Also from social impact perspective, it is close to our heart,” he said.
The project will be executed through a special purpose vehicle (SPV), in which Capacit’e Infraprojects will have 37.1 per cent share worth Rs 43.57.billion. Share of Tata Projects in the consortium will be 36.9 per cent and CITIC Construction. will have 26 per cent share.
The construction of the 121-chawl buildings, each with 80 rooms, was completed between 1921 and 1925, a project to address the housing shortage.
Currently, around 9,700 families reside in the project precincts. With the housing colonies more than 90 years old and through with their life cycle, the government of Maharashtra decided on the redevelopment.
However, experts have cautioned about the insufficient infrastructure in the area.
“The development will choke the area. Where is the infrastructure to support new developments,” said Amit Bhagat, chief executive of ASK Property Investment Advisors.
Capacit’e Infraprojects stock ended at Rs 285.40, about 0.87 per cent down from Thursday's close.