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.
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