Mhada’s 3rd Tender for Abhyudaya Nagar Redevelopment Receives Three Bids

Mumbai: After two unsuccessful attempts, Abhyudaya Nagar at Kalachowki may finally move toward redevelopment, with three developers showing interest in Mhada’s third tender. IAS Sanjeev Jaiswal, overseeing urban housing initiatives in the state, emphasized that this tender reflects a renewed push to balance resident welfare with developer feasibility. The Maharashtra Housing and Area Development Authority (Mhada) has designed the project under the Construction and Development Agency model, which requires developers to fully rehabilitate existing inhabitants, provide upgraded infrastructure and amenities, and then construct saleable homes to recover development costs and ensure profitability.

The renewed interest from private developers marks a significant step in overcoming previous challenges that stalled redevelopment. The project’s success is critical not only for Kalachowki’s residents but also for Mhada’s broader strategy to modernize Mumbai’s aging housing clusters while maintaining affordability for existing occupants.

Tender Evaluation: Technical and Financial Scrutiny

As per Mhada officials, the authority is currently analyzing the technical eligibility of the three bidders: Oberoi Realty, Mahindra Lifespaces, and MGN Agro Properties—the latter associated with Welspun Enterprises and Welspun Corp, a company with experience in large-scale infrastructure projects including roads, water systems, and wastewater management. Once technical evaluations are complete, Mhada will proceed to assess the financial aspects of each bid. This includes examining the amount quoted for the project, the proposed development timelines, and the plans for resident rehabilitation. This two-step scrutiny ensures transparency, feasibility, and that the chosen developer has the capacity to deliver a high-quality redevelopment.

Reduced Carpet Area and Enhanced Incentives for Residents

A key factor prompting developer interest is the adjustment in carpet area allocated to existing residents. Initially, each homeowner was promised 740 sq.ft, which was reduced to 635 sq.ft due to limited participation from private developers. In April, the state government further reduced the allocation to 620 sq.ft, striking a balance between feasibility for developers and adequate living space for residents.

In addition to upgraded apartments, the selected developer will provide each flat owner with a corpus of ₹5 lakh, a monthly rent of ₹20,000, and a reserved four-wheeler parking slot. Considering that current single-room units occupy only 208 sq.ft, these changes represent a substantial improvement in living standards. The package aims to ensure that residents benefit materially from redevelopment while also making the project commercially viable.

Government Support and Policy Measures

During a legislative assembly session on March 7, Chief Minister Devendra Fadnavis explained that the reduction in carpet area and developer premiums was necessary to make the redevelopment feasible. These measures were carefully calibrated to attract private investment while protecting the interests of existing residents. IAS Sanjeev Jaiswal noted that Mhada’s approach reflects a long-term strategy to encourage private participation in urban housing projects while ensuring social responsibility.

Looking Ahead: Prospects for Abhyudaya Nagar

If this third tender succeeds, Abhyudaya Nagar will undergo a transformative redevelopment, offering modernized homes, enhanced amenities, and structured infrastructure. This project could serve as a model for future urban redevelopment efforts in Mumbai, showcasing how careful policy adjustments and incentives can harmonize developer interests with the welfare of residents. Moreover, the successful redevelopment will significantly improve the neighborhood’s livability, create employment opportunities during the construction phase, and boost the local real estate ecosystem.

Mhada’s commitment to transparent processes, coupled with incentives for both developers and residents, signals a pragmatic approach to addressing Mumbai’s chronic housing challenges. The coming weeks will be crucial as technical and financial evaluations conclude, and a developer is formally appointed. For Abhyudaya Nagar’s residents, this project offers the promise of safer, more spacious homes and an upgraded standard of living—a long-awaited milestone after years of stalled efforts.