RAHEJA BAGS 500CR DELHI SLUM PROJECT

  Delhi Development Authority (DDA) has awarded Delhi ’s firstslum redevelopment project, worth Rs 500 cr, to a local builder, Raheja Developers,in a move that may see more such projects in the national capital resulting inbetter living conditions for urban poor and thousands of crores of businessesfor builders.    DDA has awarded 5.22-hectare, or 13-acre, project atKathputli Colony near Shadipur Depot in west Delhi to Raheja Developers for Rs 6.11 cr, a DDA spokesperson said. Under the scheme,the builder pays only Rs 6.11 cr—the bid amount—for the land, but has to build2,800 homes, of 30 sq meter size each, for existing slum dwellers of KathputliColony named after its majority residents of puppeteers and craftsmen. In thebargain, the builder gets for commercial exploitation 10% of the total spaceslated for 2800 homes and also close to a hectare for high-end residentialdevelopment . Therefore, the cost incurred in building 2800 homes forslum-dwellers will be offset by the sale of commercial space (office, shops)and high-end houses in the project, while land would come dirt cheap at Rs 6cr.    DLF has recently sold 1,250 apartments in its Capital Greensproject, just 3-4 kilometers from Shadipur Depot at a rate of Rs 5,677 a sq ft.Raheja Developers will have to create temporary accommodation for the slumdwellers at a piece of land close to the project site that will be given by theDDA in a month or two. The builder will be expected to build homes for slum-dwellers within two yearsof the allotment of the land for temporary accommodation. Usually, slumredevelopment projects offer a very high margin of 70-75% to the developers,mainly because land comes cheap even as projects are fraught with politicalrisks. In Mumbai, developers have to get the consent of 70% of theslum-dwellers and many a time face opposition from political interests as wellas voluntary organizations. In Delhi ’sKathputli Colony project, the government has already got slum-dwellers onboard. And Navin Raheja, CMD of Raheja Developers, said the project is a‘loss-making proposition’, but he has taken this up because he is engaged in asocial ‘mission’ to help urban poor get homes. He estimates this project to beworth Rs 500 cr.    DDA had invited technical bids for the project over a yearago. Eight developers, including Unitech, HDIL and Raheja ,met the technical qualification criteria, but only one of them submittedfinancial bid early this year amid cash crunch faced by most realty firms.    Unitech, country’s second largest realty firm, declined tocomment on why it didn’t submit a bid.   Courtesy:- ET dt:- 06-10-09  

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