Mumbai, Apr 17 (PTI) Gautam Adani, the richest Indian, will receive approximately 17 lakh square meters of area for sale in Motilal Nagar, where his group plans to invest Rs 1 lakh crore to execute the redevelopment project in suburban Goregaon, according to a top government official.
The Motilal Nagar Redevelopment Project, spread over 143 acres, can create 28 lakh sq metres of space, of which over 10.5 lakh sq metres will have to be given to the original tenements and the Maharashtra Housing and Area Development Authority (MHADA), the body's vice president and chief executive, Sanjeev Jaiswal said.
Construction and development firm Estatevue Developers, an entity owned by the Adani group, will get a free sale area of 17 lakh sq metres, or 1.82 crore sq ft, which it will be able to sell in the open market, Jaiswal said.
When asked about the overall investments for the project, Jaiswal said the overall investment for the project will touch Rs 1 lakh crore over a 10-15-year period.
Last year, the Adani group, which is also executing the Dharavi redevelopment project, emerged as the winning bidder for Motilal Nagar, the first project under the CD&A (Compensation Discussion and Analysis) model.
A source in the know said that the going rate per sq ft in the area is Rs 30,000, and the residential segment presents the best opportunity to monetise.
According to an official associated with Adani's realty business, the group has decided that it will be a mixed-use project, but has yet to decide on how to split it. Besides residential, it can consider space for commercial, educational or hospitality sectors as well.
Jaiswal said the CD&A has a deadline of rehabilitating the 5,000 original tenements consisting of residential, commercial and slum units in the next seven years, but added that the same deadline can get pushed marginally.
The priority in the cluster redevelopment project is the original residents, he said, adding that MHADA is also conducting a public meeting with them later on Friday evening.
The CD&A can build out the free sale area component as per its convenience, but the ownership of the land will be retained by MHADA, Jaiswal said.
He added that the CD&A cannot raise any finance or transfer development rights without MHADA's approval.
Just like Motilal Nagar, there are 11 other projects across the financial capital, which MHADA will be awarding in the next year using the C&DA route, Jaiswal said.
These 11 projects spread over 923 acres, and once they are executed, they will change the Mumbai skyline, the bureaucrat said, adding that the city has not witnessed such a development earlier.
A total of 75,445 tenements will get rehabilitated through these projects, including neighbourhoods like Kamathipura, Adarsh Nagar in Worli, Abhyudaya Nagar and also Bandra Reclamation, he added.
Each residential tenement holder in Motilal Nagar will get 1,600 sq ft of space, while a commercial unit holder will get 957 sq ft, as part of the redevelopment.
The overall number of residents on the piece of land will go up to around 25,000 families from the present 5,000, Jaiswal said.
He also said that there is a need to re-examine the present-day slum rehabilitation project set up, wherein the original slum dwellers are rehabilitated in situ.
Jaiswal said that the massive redevelopment, including through C&DA projects and also slum redevelopments like Dharavi, will increase the supply of space in the city and hence, efforts need to be made to make it more viable to undertake rental housing in the city.
Specifically, efforts need to be made to increase the rental yields, which are at low levels of 2 per cent, he said.