The largest slum in Asia, a sprawling shantytown in the centre of Mumbai, will be demolished and replaced with free homes for the city's poor under a $2.3bn (£1.2bn) scheme to transform one of India's most obvious eyesores.
The state government of Maharashtra placed advertisements yesterday inviting Indian and foreign developers to raze the tin shanties and maze of open drains that make up Dharavi slum and replace it with a new township in India's financial hub. For the government the redevelopment is a demonstration that developers can help the poor and free land in one of the world's most densely populated spots.
Dharavi stands on just a square mile of land - reckoned to be worth more than $10bn - and houses about 600,000 people in ramshackle buildings. The government will sell land below market prices and, as an incentive to create properties for the poor, says that for every square foot of accommodation created for slum dwellers, developers will get 1.3 square feet for commercial use. The argument is that while slum dwellers will get flats in high-rise blocks the rest of the land can be used for malls, middle-class apartment blocks and business parks.
The scheme has outraged local activists who say the poor are being ignored in favour of the rich. Jockin Arputham, president of the National Slum Dwellers Association, told news agencies that it was not clear where ordinary people would live in the new developed areas.
He said Dharavi's residents lived next to the small businesses - such as tanneries and potteries - where they worked. "Their businesses will be shut once the construction starts," said Mr Arputham. "[The government] is forcing us to get on to the street," he said. "We will tell bidders from Europe to China not to touch this project because it damages the country."
India, Asia's fourth-largest economy, is facing a crisis of "slumification" according to experts, with numerous people leaving the countryside in search of jobs in the booming cities. The Indian government's own figures show the number of people living in its slums has more than doubled in the past 20 years to more than 60m.
