The Indian Railways and the Maharashtra government clinched a deal on Sunday under which the Railways will part with up to 50 acres of land held by it for the Dharavi redevelopment plan.
The agreement was finalised by Maharashtra Chief Minister Devendra Fadnavis, Railways Minister Piyush Goyal and Railways Board Chairman Vinod Kumar Yadav in Mumbai, and will be announced in Delhi on Monday.
The 45-50 acres of land that the Railways has agreed to transfer is part of two parcels held by Western Railways and Central Railways in the Matunga-Mahim area measuring a total of 97 acres.
Top sources said the government has agreed to pay Rs 800 crore for the land, as well as a share of profit from the redevelopment to the Indian Railways.
Earlier this month, the Dubai-based Seclink Technology Corporation successfully bid to partner in a special purpose vehicle with the government’s Dharavi Redevelopment Authority for the over 500 acre project. But Cabinet clearance is awaited. The estimated cost of the project is Rs 26,000 crore.
Sources said Goyal put his full weight behind the deal between the railways and the Maharashtra government, which was in a rush to finalise the transfer before the elections were announced.
As the Railways are not allowed to sell land outright unless it is for public purposes, officials were reluctant to get on board the deal. The two zones and the board were persuaded to sign off on it over the last three days.
State officials said it would give a much-needed boost to the Dharavi redevelopment project. The state says that as many 30,000 transit accommodation unit would be built on the land transferred by the Railways.