Why Redeveloping Mumbai's Mill Lands Is Important

The cotton mills in Mumbai that occupied the centrally located land in the city, were once profitable. It was a few decades ago that these mills became unprofitable  as they could not withstand competition from mills in other parts of India and even in Japan.  This was inevitable because operating such mills in the heart of a large city is expensive. But for many decades, the land occupied by these mills remained idle. There were many reasons why this happened, including labour regulations and disputes, among others. Many then believed that Mumbai could save many jobs if mill owners were not allowed to shut them down.

Now, the state government is in the process of redeveloping these mills, which has not been successful yet.

Recently, the Bombay High Court asked the Maharashtra Housing and Area Development Authority (MHADA) for details on the mill land plots made available for rehabilitating mill workers and building affordable houses. Earlier, the court had asked MHADA to allot plots to workers based on a lottery, though this was subject to court orders. But, the process did not seem transparent. In 2009, when some of the mill land was auctioned, prices were around $ 2,200 per sqm.

It is sad that such valuable land has been lying idle in the heart of India's financial capital for decades. In 2005, Alain Bertaud and his collaborators estimated that the 400-acre mill land, 1800-acre port trust land, 300-acre Indian railways' land, and 800-acre Brihanmumbai Municipal Corporation (BMC) land would have generated an income of more than a billion dollars. In 2005, this was over two-third of the budget of the BMC.  This is an underestimate, because when valuable land remains idle, there are other consequences. For example, there are at least a hundred thousand people living on pavements in Mumbai. In 2005, there were half a million people who were encroaching on public infrastructure, because they did not have space to live in. They could have been accommodated on idle land at a much lower cost. When people encroach on valuable infrastructure, the cost to the city is much greater. Encroachment on public infrastructure costs Mumbai many millions of dollars.

It is important to redevelop mill lands, not just because it is valuable land in the centre of the city. To redevelop the mill land profitably, authorities may have to repeal regulations that keep floor area ratios artificially low, and prevent real estate development in the coastal zone. Moreover, the redevelopment of the mill and port trust lands will have an impact on how infrastructure is being developed in Mumbai.

The Mumbai Trans Harbor Link (MTHL) is expected to connect Navi Mumbai with the Island City.  For this bridge, the mill and port trust land will be the main connecting points. So, how the mill lands are being redeveloped matters a lot. For example, whether the bridge should be optimised for car, bus or rail depends on the land use policy that applies to mill land. It is quite possible to finance the bridge from the revenues that accrue from redeveloping such idle land.

If authorities do an excellent job in redeveloping such properties, this will have a great impact on Mumbai's economy. Policies which Mumbai implement are often adopted by cities across India.

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