HDIL's slum-rehab project gets a kicker

HDIL's slum-rehab project gets a kicker


Housing Development and Infrastructure Ltd (HDIL), the Mumbai based developer which is developing the slum rehabilitation component of gigantic Mumbai International Airport Ltd (MIAL) project finally received the nod from Mumbai Metropolitan Region Development Authority (MMRDA)after a delay of more than one and a half years.
HDIL announced in BSE , “MMRDA has started the process of shifting of eligible slum dwellers from MIAL to Kurla Premiere compound and have issued Allotment letters to the eligible slum dwellers for the 1st phase.”

Sources close to development said, “It is a positive news for the company as finally MMRDA has given some clarity regarding movement of slum dwellers. At present it has given eligibility letters to close to 400-500 slum dwellers. After the relocation, land will be cleared for proposed Sahar Elevated Road connecting international airport to western express highway. Though it is a smaller step as MMRDA wanted to clear the way for the highway, the company is hopeful that things will move from here on and expedite the Phase II of the project.”
HDIL acquired land for the last leg of this project when it bought a 105 acre land parcel in Kanjurmarg, central suburbs of Mumbai.
Suman Memani and Abhishek Kumar of Pinc Research wrote to their clients, “we expect that work on other phases of MIAL project to ramp up and see TDR generation exceed 1 msf post two quarters. This is likely to lead to higher cash generation which is likely to make tax rate fall marginally as TDR is taxed at minimum alternate tax (MAT).” HDIL had revised its TDR sales target due to delay in generation of TDR from the airport project, also it paid higher tax in Q4FY11 due to lower sales of TDR.

As part of Phase I, HDIL's deadline to shift the families to the Kurla land parcel was September,2009, the project was first delayed by a few months and then due to unavailability of water connection the shifting of families had to be restrained. Later came the hurdle of eligibility of slum dwellers inhabiting the area.
In January this year, MMRDA had brought in SPARC) which works with the slum dwellers of Mumbai to reassess the entire eligibility issue. The government had earlier issued notification that the cut off for eligibility for slum dwellers is calendar year 2000 and any individual inhabiting after that date would not be eligible for rehabilitation.

HDIL will receive 65 acres after the completion of the first phase. It has constructed 7000 units for rehabilitation in the first phase.

During relocation under the phase I families from Bamanpada and Ambedkar nagar will be shifted. HDIL has officially sold transfer of development rights (TDR) of approximately 11-12 msft. After the completion of the first phase the developer would receive 65 acres.
The street reacted positively and shares of the company closed at Rs 169.40 per share, up by 4.92 per cent in BSE.