The lack of interest in the proposed reconstruction of the 33-acre area in Kalachowki is yet another setback for the people of Abhyudaya Nagar. No offers have been received in spite of the Maharashtra government’s efforts to rehabilitate the cluster.
A Maharashtra Housing and Area Development Authority (MHADA) official revealed that the lack of response has led to the cancellation of the tendering process. In the upcoming days, the authorities will make a decision regarding the renewal of the tender.
The main obstacle, according to real estate developers, is the substantial compensation obligations for current inhabitants. According to an unnamed developer, the project is not financially feasible if three times the existing carpet area is offered.
With an initial capital cost projected at between ₹1,500 crore and ₹1,800 crore, another builder emphasised the significant financial commitments. Construction expenses, yearly rent increases, and ₹1,500 crore in government premiums and other levies are not included in this sum. The first year’s rent and moving costs would also cost between ₹120 crore and ₹150 crore.
Abhyudaya Nagar consists of 48 buildings and 3,410 eligible tenements—3,335 residential and 75 commercial—that were first developed by MHADA in the 1960s to house industrial workers. Ownership was transferred to tenants after 1985, forming cooperative housing societies. The redevelopment plan also includes rehabilitating slum settlements within the colony.
In March 2023, the Maharashtra government approved cluster redevelopment, designating MHADA to oversee the project. In October 2024, just before the Maharashtra assembly elections, MHADA issued a tender with a November 21 deadline, later extending it due to a lack of response before ultimately cancel it.
According to MHADA officials, the state housing ministry would need to approve changes to the bid criteria in order to draw interest. A second redevelopment bid will be put out on the same terms if no changes are made.
According to the current tender, the chosen developer would get 55% of the housing stock for an open market sale, with the remaining 45% going towards rehabilitation and MHADA’s portion, which would then be put up for sale through a housing lottery.
Residents of 3,283 homes with a carpet area of 208 sq ft were slated to receive 635 sq ft units. Those in 36 tenements of 192 sq ft would get 622 sq ft homes, while residents of eight 486 sq ft homes would be allocated 1,199 sq ft units. Another eight tenements of 315 sq ft were to receive 777 sq ft homes. Additionally, each of the 3,335 tenements was promised a parking space.
Each household was to receive ₹50,000 for relocation and ₹20,000 per month in alternative accommodation rent, with a 10% annual increase.
For commercial units, 67 owners of 208 sq ft spaces were to receive 355 sq ft units, while eight owners of 1,503 sq ft units were to be allotted 2,555 sq ft spaces. A ₹5 lakh corpus fund was also proposed for both residential and commercial occupants.
Source: Hindustan Times
