August 1, 2025: The slum clusters of Shivaji Nagar and Baiganwadi in Govandi — areas with the lowest Human Development Index (HDI) according to the BMC’s 2014 data — have received no developer interest for a proposed redevelopment project.
The Brihanmumbai Municipal Corporation (BMC) had floated a tender on May 14 for the redevelopment of 64 slum plots, including 18 locations within the M-East ward, which encompasses Govandi and Shivaji Nagar. While bids were received for 29 locations across the city, none came for the Govandi cluster, a senior civic official confirmed.
“We’re uncertain about the lack of response, but one possibility is that the profit margins here are far lower than in other areas,” the official added. The 18 plots in Govandi house over 22,500 structures, and the civic body now plans to re-invite bids. Deputy Municipal Commissioner Sanjog Kabre confirmed: “We will call for fresh tenders soon.”
Under current regulations, the state government has granted BMC the right to redevelop slums located on civic land. For every redevelopment project, BMC earns a premium — 25% of the total plot value — based on the ready reckoner rate, and the rights are awarded to the highest bidder.
However, industry experts cite poor commercial viability as the main deterrent. “There is no government funding support for developers, and the commercial value of Govandi is extremely low,” said Anand Gupta of the Builders Association of India. “Poor connectivity and lack of infrastructure are major drawbacks.”
Prashant Thakur, Regional Director at ANAROCK Group, added: “The proximity to the Deonar dumping ground, limited civic amenities, and dense tenement clusters make these locations less attractive. Land use restrictions and governance issues further reduce profitability, discouraging developer participation.”
Source: MumbaiMirror
