A Business-Friendly Plan For Mumbai Slum Resettlement?

There’s an interesting article in the New York Times by Anand Giridharadas about the way in which the Indian real estate boom has been affecting slums in Mumbai.

As many readers may be aware, Mumbai shantytowns are unusual in that their residents are often effectively permanent, and many people living there actually prefer the chaotic environment to the cramped enclosed spaces that are sometimes made available to them via various housing/resettlement schemes. The old method of clearing slums consisted of mainly bulldozing them and then going away, at which point the former residents would simply come back and rebuild. It was, in effect, both ineffectual and unfair. In recent years, the pace of slum-clearing has quickened, as the government has hopes of “Shanghaization” in support of “Vision Mumbai” (see this Frontline article for more).

But now there is a new method, where private developers are resettling slum dwellers into tower apartments they build and give away for free to residents. In exchange, they get to develop the remainder of the land any way they want:

Under a government program that is unusual in slums the world over, investors both here and from abroad are doing what was once left to philanthropists: giving slum dwellers new apartments free of charge.

Builders raze entire slums and use part of the land for tenement houses to shelter the former residents. The apartments are 225 square feet, the size of a typical shanty here. In return, the developer wins the right to build lucrative towers on the rest of the land, and pays nothing but the cost of resettlement.

Investors are eager to build these homes. “The moment you put them in a tower, you’re releasing 90 percent of the land,” said Pranay Vakil, chairman of the Indian arm of Knight Frank, a global real estate consulting firm.

So far, 100,000 apartments have been built in Mumbai, formerly known as Bombay, housing 600,000 people, said Debashish Chakrabarty, a civil servant who runs the cityÂ’s Slum Rehabilitation Authority. (link)

There are some concerns about this approach that are outlined in the Times article (read the whole thing), but at first glance this seems like a significant improvement over how things are normally done in Mumbai. The slum-dwellers aren’t forced out of the area, nor are they forced to agree to resettlement plans (70% of the established residents have to approve the plan before it is enacted).

What do people think? Can this work? Does it seem like it might really improve the living situations of slum dwellers? Can there really be such a thing as a business-friendly approach to slum resettlement that is also fair to the lower middle class and working class people who currently live in Mumbai’s slums?

58 thoughts on “A Business-Friendly Plan For Mumbai Slum Resettlement?

  1. Some, like my parents, want to stay on in the new ‘towers’, but are afraid of getting swindled by these powerful builders.


    Your parents will probably get a new flat without any cost to them. Their old 20 lakh place is replaced by their new 30 lakh place. I don’t know how they get ‘swindled’. Maybe because they could not get a 40 lakh flat to replace their 20 lakh flat? Get out of the socialist mindset, all builders are not swindlers. Get out of the mindset of ‘squeezing’ everything out of anyone who is under your thumb. The new generation of capitalists in Mumbai are fast moving and progressive, your parents window of opportunity will not last for ever.

  2. Get out of the socialist mindset, all builders are not swindlers.

    In the Indian context, most probably are. But since technophobicgeek’s parents are educated, they should be able to get a decent deal. No matter what, it’s the builders who are going to the bank, but that just has to be accepted.

  3. In the Indian context, most probably are. But since technophobicgeek’s parents are educated, they should be able to get a decent deal. No matter what, it’s the builders who are going to the bank, but that just has to be accepted.


    Builders take massive risk, the payoff can quickly turn into a nightmare if the market turns. Big risk = big reward.

    You still have a deep socialist mindset, reinforced by media and movies.

  4. Here’s a great piece from public radio’s “The World” about Bombay’s slums: http://www.theworld.org/?q=node/6780

    It covers the things discussed on this thread and more, including the problem of resettlement, the danger of creating high-rise/vertical slums (including a “consultant” on slum-resettlement who seems to know what he’s talking about), and the successful efforts by slum dwellers (including Magsasay-winner Jockin Arputham — hadn’t heard of him before) to organize themselves into an effective political block and make themselves heard.

  5. …thanks to rampant corruption, an overly privatised economy and political manipulation of the ‘poor’ vote, the rest of some people’s lives are just so totally shit in comparison that a piece of corrugated iron is IT.

    An overly privatised economy? India? Tash, please don’t get so worked up by all that anti-globalisation rhetoric.

    On a side note, the views of some commentators here about upper caste, middle class or rich Indians are quite interesting, given that everyone spends so much time fighting stereotypes here.

  6. im a student studying this situation, and i think this feedback is really interesting. its quite cool seeing different people with different arguments about the subject. everyone has their own perspective which is really informative. anyways, i think the slum dwellers should be asked about their concerns… i dont think the builders should just do whatever they feel like with the high rises. its the least they can do since these people are driving the slum dwellers out of their homes… out of where they are comfortable and familiar.

  7. I am intrested to know whatever happened to this idea??? or plan !!! its been already 2 years this was posted