Squatters as Developers?: Slum Redevelopment in Mumbai

206 Pages·2003·6.708 MB·English

by  Vinit Mukhija

SQUATTERS AS DEVELOPERS?
KING'S SO AS STUDIES IN DEVELOPMENT GEOGRAPHY
Series Editors:
Robert W. Bradnock and Kathy Baker-Smith
Both the School of Oriental and African Studies and King's College, whose
geography departments have recently merged, have established international
reputations for their research into these areas. This series publishes original
research into all aspects of geography in the developing world, particularly linking
environmental and development issues. It will be of critical interest to geographers
and academics in the fields of development studies, political science, environmental
studies and economics.
Also in the series
Environment, Knowledge and Gender
Local Development in India's Jharkhand
Sarah Jewitt
NGO Field Workers in Bangladesh
Mokbul Morshed Ahmad
Perspectives of the Silent Majority: Air Pollution, Livelihood
and Food Security
Indepth Studies through PRA Methods on Community Perspectives in Urban
and Peri-Urban Areas of Varanasi and Faridabad, India
Amitava Mukherjee
Wide Crossing
The West Africa Rice Development Association in Transition, 1985-2000
John R. Walsh
Water Stress: Some Symptoms and Causes
A Case Study of Ta'iz, Yemen
Chris D. Handley
Global Thinking and Local Action
Agriculture, Tropical Forest Loss and Conservation in Southeast Nigeria
Uwem E. Ite
A Clash of Paradigms: Intervention, Response
and Development in the South Pacific
Susan Maiava
Squatters as Developers?
Slum redevelopment in Mumbai
VINIT MUKHIJA
University of California, Los Angeles
ASHGATE
First published 2003 by Ashgate Publishing
Published 2016 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 ThirdAvenue,NewYork,NY 10017, USA
Routledge is an imprint oft he Taylor & Francis Group, an informa business
Copyright © 2003 Vinit Mukhija
The author hereby asserts his moral right to be identified as the author of the Work in accordance
with the Copyright, Designs and Patents Act, 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in anyform
or by any electronic, mechanical, or other means, now known or hereafter invented,including
photocopying and recording, or in any information storage or retrieval system,without
permission in writing from the publishers.
Notice:
Product or corporate names may be trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.
British Library Cataloguing in Publication -Data
Mukhija, Vinit
Squatters as developers? : slum redevelopment in Mumbai. -
(King's SOAS studies in development geography)
I.Slums -India -Bombay 2.Urban renewal-India -Bombay
I. Title II. University of London. School of Oriental and
African Studies
307.3'4416'09547923
Library of Congress Cataloging-in-Publication Data
Mukhija, Vi nit; 1967-
Squatters as developers? : slum redevelopment in Mumbai / Vinit Mukhija.
p. cm. --(King's SOAS studies in development geography)
Includes bibliographical references and index.
ISBN 0-7546-1910-9
I. Urban renewal--India--Bombay. 2. Slums--India--Bombay. 3. Housing
policy--India--Bombay--Citizen participation. 4. Inclusionary housing
programs--India--Bombay. I. Title. II. Series.
HTl78.142 B666 2002
307.3'416'09547923--dc21
2002028126
ISBN 9780754619109 (hbk)
ISBN 9781138258266 (Pbk)
Contents
List of Figures ix
List of Tables x
Preface xi
List of Abbreviations xiv
Currency Exchange Rates xv
1 Introduction: A New Strategy in Mumbai 1
The Puzzles of Slum Redevelopment 1
Placing the Research in the Context of the Literature 5
Self-help and Enabling the Communities 5
Slum Upgrading Programs 7
Enabling the Markets 8
A Preview of the Arguments 11
The Logic of Redevelopment 11
Property Rights, Property Values and Property Attributes 12
The Paradox of Enabling 13
Study Methodology 14
The Dense Data Case Study Approach 14
A Single Case, Informed by Other Cases 15
Data Sources 15
Fieldwork 16
Limitations of the Study 16
The Structure of the Book 16
2 The Evolution of the Slum Redevelopment Strategy 19
Introduction 19
The Mumbai Context 21
The Evolution of Mumbai' s Redevelopment Strategy 26
Urban Politics 26
Property Values and Land Differentials 28
Regulating the Development Potential of Land 3 3
The Need for Regulation 34
3 Decentralized Conflict 37
Introduction 38
Literature Review 40
Dharavi Redevelopment Plan: Contested Intentions 43
Prime Minister's Grant Project (PMGP) 43
Redevelopment Plan for Dharavi 44
SPARC's Census and Alternative Proposal 45
PMGP and SPARC: The Battle over Markandeya 47
Government's Response to SP ARC's Plan 47
Compromise but Further Conflict 48
Conflicts over Project Finance 50
Local NGO, Global Connections 51
Conflicts between SPARC and the Private Contractor 52
The Informal Cross-subsidy Scheme 52
Reluctance to Mortgage Land 54
Irregularities in the Sale of Extra Units 54
Taking Advantage of the Development Potential of Land 54
More Policy Changes, More Profit 55
Uncivil Society: Distrust between SPARC and the Community 56
Suspicion of the Managing Committee 56
Ten Years for New Houses 59
The Bank-guarantee under Threat 60
Arbitration by the State 60
SPARC's New Role as a Developer 61
Reexamining NGOs in Housing Delivery 62
NGOs and Community Empowerment 63
NGOs: More Like the Market and the State 64
NGOs and Autonomy 64
Decentralization and Centralization in Housing Delivery 65
4 Demolition and Redevelopment 67
Introduction 68
Literature Review: Tenure Legalization 71
From Slum Clearance to Slum Upgrading 71
Slum Upgrading and Property Structures 72
Slum Upgrading and Property Values 73
The Physical Structure of Properties in Dharavi 74
Dharavi' s Changing Geography 74
Slum Upgrading and Slum Redevelopment 75
Rajendra Prasad Nagar and the Markandeya Slum 78
Change in Property Rights and Property Attributes 80
vi
Redevelopment into a Low-rise Courtyard Structure 80
State Suspicion of Future Encroachment 83
Adding More Floors 85
High Land Values and Medium-rise Living 90
Medium-rise Living as an Outcome of Redevelopment 90
Slum Redevelopment Projects in Mumbai 92
Slum Redevelopment and Tenure Legalization 96
Low-income Housing Myths 96
Property Rights, Property Attributes and Property Values 97
Demand-driven or Supply-driven Development 100
5 Financing Slum Redevelopment 103
Introduction 104
Literature Review: Markets and Partnerships 107
Markets and Low-income Housing 107
Public-Private Partnerships and Housing 108
State Finance for Redevelopment 108
Prime Minister's Grant: A Revolving Fund 108
Beneficiaries' Contributions and Housing Loans 110
Increase in Cost Estimates 111
Financial Prudence of State Agencies 112
Private Capital from the Non-profit and the For-profit Sectors 113
Bank-guarantee from an International NGO 113
Policy Changes to Attract Private Capital 117
Institutional Responses to the Scarcity of Finance 120
The Joint-venture at Markandeya 120
SP ARC' s Deal-making 121
State Initiative to Provide Development Finance 123
Private and Public Roles 124
The Problem of Development Finance 125
Partnerships and Innovation 126
6 Enabling Slum Redevelopment in Mumbai 129
The Mumbai Experience 129
An Analytical Framework for Upgrading 131
The Paradox of Enabling 132
Deregulation and New Regulations 132
Decentralization and Centralization 133
Privatization and Public Involvement 134
Demand-driven and Supply-driven Development Strategies 135
Enabling Housing Provision 13 5
vii
Future Research 137
Evaluation of Slum Redevelopment Projects 137
Stakeholders and their Institutional Interests 139
Urban Collective Action 140
Squatters as Developers 140
Appendices 143
Appendix 1 List of Interviewees 143
Appendix 2 Property Values in Mumbai 146
Appendix 3 Scion Shivaji Nagar CHS 148
Appendix 4 Markandeya CHS: Annexure II, SRD Application 149
Appendix 5 Cost Estimate of the Rajiv Indira CHS 151
Notes 153
Bibliography 171
Index 185
Vlll
List of Figures
2.1 Timeline of housing programs for Mumbai' s slums 19
2.2 Map of India showing Mumbai 22
3.1 Timeline of key institutional events at Markandeya 37
3.2 Map of Mumbai showing Dharavi 42
3.3 The Markandeya project, late 1997 57
3.4 Institutional diagram of the Markandeya case 58
4.1 Timeline of key physical events at Markandeya 67
4.2 The physical structure of housing in Dharavi 75
4.3 Map of Dharavi showing Rajendra Prasad Nagar 77
4.4 Map of Rajendra Prasad Nagar showing Markandeya 78
4.5 Survey layout of Markandeya, 1987 79
4.6 Floor plan and section of MCHS, 1988 82
4.7 Floor plan and section of MCHS, 1996 88
4.8 Front view and hallway at MCHS, 1998 89
4.9 Floor plan of RICHS, 1998 91
4.10 Hoarding at the Rajiv Indira site, 1998 91
4.11 Redeveloped parts of Dharavi, 1998 95
5.1 Timeline of key financial events at Markandeya 103
A. 1 Floor plan of Scion Shivaji Nagar 148