While Mumbai, the host to the biggest slum in Asia still has a long way to go before it can become slum free, there are momentous changes that hold the promise of transforming India. B&E meets up with slum Developers, PE investors and of course, the government for an update!
However, currently Mumbai International Airport Ltd (MIAL) slum development programme has been an eyesore for a long time and the delays are only making matters worse. Recently, even as Prime Minister Dr. Manmohan Singh is reported to have sought details on the progress of the slum rehabilitation programme around the Chhatrapati Shivaji International Airport (CSIA), the company developing and operating the airport said it has not received any communication to that effect.”
In October 2007, realty firm Housing Development and Infrastructure Ltd (HDIL) had bagged the contract for rehabilitation of 276 acre of Mumbai airport slums. Under the contract, HDIL needs to resettle about 80,000 slum households. According to MIAL, the encroached area is important for the expansion of CSIA. At present, the airport has less than 2,000 acres of land for development of the airport, of which 276 acres is occupied by slums.
According to HDIL, Phase 1 of the project has already begun with 85% of the work complete where about 20,000 slum dwellers will be rehabilitated. The company said that the first 16,000 tenants are scheduled to be allotted shortly. Recently, HDIL has raised $250 million through sale of shares to qualified institutional investors to part-finance the second phase of the airport rehabilitation programme in Mumbai, among others. H P Pandey, Vice President (Finance), HDIL told B&E, “We have closed the qualified institutional placement (QIP) following huge response from the overseas institutional investors. In fact, we have received bids in excess of $350 million. Besides part-financing of the airport rehabilitation programme, HDIL would utilise the funds to meet working capital requirements.”
The Prime Minister’s concern comes at a time when Mumbai’s existing airport infrastructure is fast reaching saturation point and there is still no clarity over the second airport site. Few days ago, Maharashtra’s Chief Minister Ashok Chavan, along with a delegation of ministers met the PM in Delhi regarding the development of the second airport in Navi Mumbai. Post the meeting, Chavan said that the Prime Minister had assured that he would look into the matter soon and will hold meetings with the Environment Ministry and Ministry of Civil Aviation to remove obstacles in the way.
In essence, the war between ministries and bureaucratic delays are only delaying the much needed de-suffocating pills for the city of Mumbai.
In October 2007, realty firm Housing Development and Infrastructure Ltd (HDIL) had bagged the contract for rehabilitation of 276 acre of Mumbai airport slums. Under the contract, HDIL needs to resettle about 80,000 slum households. According to MIAL, the encroached area is important for the expansion of CSIA. At present, the airport has less than 2,000 acres of land for development of the airport, of which 276 acres is occupied by slums.
According to HDIL, Phase 1 of the project has already begun with 85% of the work complete where about 20,000 slum dwellers will be rehabilitated. The company said that the first 16,000 tenants are scheduled to be allotted shortly. Recently, HDIL has raised $250 million through sale of shares to qualified institutional investors to part-finance the second phase of the airport rehabilitation programme in Mumbai, among others. H P Pandey, Vice President (Finance), HDIL told B&E, “We have closed the qualified institutional placement (QIP) following huge response from the overseas institutional investors. In fact, we have received bids in excess of $350 million. Besides part-financing of the airport rehabilitation programme, HDIL would utilise the funds to meet working capital requirements.”
The Prime Minister’s concern comes at a time when Mumbai’s existing airport infrastructure is fast reaching saturation point and there is still no clarity over the second airport site. Few days ago, Maharashtra’s Chief Minister Ashok Chavan, along with a delegation of ministers met the PM in Delhi regarding the development of the second airport in Navi Mumbai. Post the meeting, Chavan said that the Prime Minister had assured that he would look into the matter soon and will hold meetings with the Environment Ministry and Ministry of Civil Aviation to remove obstacles in the way.
In essence, the war between ministries and bureaucratic delays are only delaying the much needed de-suffocating pills for the city of Mumbai.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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