Dissertation - Encountering the Hidden Potential of Informal Industries (Leather Indusries, Dharavi) by Harsheeta Gupta

Encountering the Hidden Potential of Informal Industries A Case of Leather Industries of Mumbai

BPlan Dissertation

Encountering the Hidden Potential of Informal Industries A Case of Leather Industries of Mumbai

Harsheeta Gupta

Dr. Anurima Mukherjee Basu

Up4713

CONTENTS

Undertaking ---------------------------------------------------------------------------------------------------------------- i Certificate ----------------------------------------------------------------------------------------------------------------- ii Acknowledgement ------------------------------------------------------------------------------------------------------ iii Abstract ------------------------------------------------------------------------------------------------------------------- iv 1

Chapter 1 --------------------------------------------------------------------------------------------------------- 1 Research Question --------------------------------------------------------------------------------------- 1 Aim --------------------------------------------------------------------------------------------------------- 1 Objectives-------------------------------------------------------------------------------------------------- 2

Methodology ---------------------------------------------------------------------------------------------- 2 Stage I | Literature Review and Preliminary Data Collection ----------------------------- 2 Stage II | Field Survey: Leather Industry of Dharavi --------------------------------------- 3 Stage III | Analysis -------------------------------------------------------------------------------- 3 Stage IV | Recommendations -------------------------------------------------------------------- 3 Limitation of the study ---------------------------------------------------------------------------------- 3 2

Chapter 2 --------------------------------------------------------------------------------------------------------- 5 Understanding linkages between Informality and Slums----------------------------------------- 5 Informality within Urban Settings -------------------------------------------------------------- 5

Slums as Informal Settlements ------------------------------------------------------------------ 6 Understanding Informal Economy -------------------------------------------------------------------- 7 Slums as potential Economic Hubs ------------------------------------------------------------------10 Case: Tokyo ----------------------------------------------------------------------------------------11 Summary --------------------------------------------------------------------------------------------------12 3

Chapter 3 --------------------------------------------------------------------------------------------------------15 Dharavi: Looking Inside -------------------------------------------------------------------------------15 History of Dharavi --------------------------------------------------------------------------------15 Informal Production Units in Dharavi --------------------------------------------------------------17

Government initiatives for development of Dharavi ---------------------------------------------19 Dharavi Notified Area (DNA) -----------------------------------------------------------------20 Land Ownership in DNA ------------------------------------------------------------------------21 Dharavi Redevelopment Project ---------------------------------------------------------------22 Sectorial Approach for Redevelopment of Dharavi ----------------------------------------22 Site Selection---------------------------------------------------------------------------------------------24 Land use of the Site ------------------------------------------------------------------------------25 Types of Industries on Site ----------------------------------------------------------------------26

CONTENTS

Chapter 4 --------------------------------------------------------------------------------------------------------29 Data Framework -----------------------------------------------------------------------------------------29 Data Requirement and collection --------------------------------------------------------------------29

Chapter 5 --------------------------------------------------------------------------------------------------------33 Snapshot of the Leather Industry of Dharavi ------------------------------------------------------33 History ----------------------------------------------------------------------------------------------33 Concerns --------------------------------------------------------------------------------------------33 Market-----------------------------------------------------------------------------------------------34 Existing Organizations for Leather Workers ------------------------------------------------34

Zooming in to the Site - Analysis --------------------------------------------------------------------35 Basic Profile of the Leather Units -------------------------------------------------------------35 Economic Potential of Leather Industry ------------------------------------------------------37 Government Policies for Industries -----------------------------------------------------------40 Condition of the Leather Industries -----------------------------------------------------------43 Conclusion------------------------------------------------------------------------------------------------47 How many will be re-accommodated? -------------------------------------------------------47 Major hindrance in eligibility for re-allocation are:----------------------------------------47 What could be done in the future? -------------------------------------------------------------48

List of Figures -----------------------------------------------------------------------------------------------------------51 List of Tables ------------------------------------------------------------------------------------------------------------52 List of Abbreviations ---------------------------------------------------------------------------------------------------52 Appendix 1 ---------------------------------------------------------------------------------------------------------------53 Appendix 2 ---------------------------------------------------------------------------------------------------------------54 References ----------------------------------------------------------------------------------------------------------------55

Undertaking

I, Harsheeta Gupta, the author of the dissertation titled Encountering the Hidden Potential of Informal Industries, hereby declare that this is an independent work of mine carried out towards partial fulfilment of the requirements for the award of the BPlan degree by CEPT University, Ahmedabad, India. This work has not been submitted or is being submitted to any other institution for the award of any degree/diploma.

I also certify that the dissertation report has been written by me. Any help received in undertaking this research and preparing the dissertation report has been duly acknowledged.

All views and opinions expressed in this dissertation report are my mine, and do not necessarily represent those of the institute. I also understand that any part(s) (eg, conceptual ideas, empirical findings, data, etc) of this research work that are not mine, if not suitably acknowledged, constitutes plagiarism.

Sign

Name of student

: Harsheeta Gupta

Code

: UP4713

Date

: 13 April 2017

CERTIFICATE

This is to certify that the thesis titled “Encountering the Hidden Potential of Informal Industries” has been submitted by Harsheeta Gupta (UP713) towards partial fulfilment of the requirements for the award of Bachelors’ Degree in Planning. This is a bonafied work of the student and has not been submitted to any other university for award of any Degree/Diploma to the best of my knowledge.

Chairperson Dissertation Committee

Dissertation Guide

Acknowledgement Firstly, I would like to express my gratitude to Faculty of Planning, CEPT University for providing me an opportunity to pursue my graduation thesis. I consider the knowledge and experience that I have gained here during my study period, has been a value addition to me. A special thanks to my thesis guide Dr. Anurima Mukherjee Basu for all her support and generous insights which have helped me accomplish my thesis. She has been a source of inspiration during the course of research and working under her guidance has been a great learning experience. Iâ&#x20AC;&#x2122;m obliged to my thesis reviewers Prof. Anil Roy, Prof. Mercy Samuel and Prof. Vivek Chandran for their precious guidance and encouragements towards the successful completion of the study. I would also like to thank the residents and manufacturers of Dharavi, Mumbai who spent their valuable time and co-operated with me during the survey to get the required information. I am also thankful to the officials of Slum Rehabilitation Authority and the team of Dharavi Redevelopment Project for providing their thoughts and views required for the research. On a personal note I would like to thank all my colleagues and friends who have supported me throughout the course of study. Finally, I would like to express my very earnest gratitude to my parents for providing me their unfailing support and incessant encouragement throughout the course of my undergraduation and through the process of researching and writing this thesis. This accomplishment would not have been possible without them.

iii

Abstract Informality is the default urban condition in the world’s most rapidly developing countries; primarily at the edge of the state control, uncovered by the laws, with no interventions by authorities and urban planning bodies. The dissimilarity between the formal and the informal can be understood in relation to the position of an enterprise vis-à-vis the state. Formal industries are fostered and nurtured by the government whereas ‘informal industries’ are deprived of several state benefits that includes registration, licensing of operations and tax benefits thus falling into a vicious cycle. The study aims to find out the potential of such informal industries as economic growth centres located in slum settlements and assess how far the government’s policies and regulations facilitate or hinder their growth. Dharavi, one of the world’s largest slums, is the research ground for this work mainly because of its symbiotic relationship with the formal city (Mumbai) and its unique productive capacity. It’s potential to absorb the myriad urban-poor groups and quickly involve them into the productive sector (though in most cases informally), makes it crucial for the debate around informality and its dynamics. It is not only a place to dwell but it also houses a number of small scale industries, which have a substantial amount of share in the city’s employment and economy. The residents use their homes as ‘tool houses’, thus demonstrating a self-created special economic zones within the settlement (Yardley, 2011). It has been estimated that the annual economic output from these small scale units ranges from $600 million to over $1 billion (Rockefeller Foundation, 2013) but no one can know for sure. This study specifically focuses on the informal leather industries of Dharavi. The research gives reasons to the questions related to the economic potential of the informal industries of Dharavi, in terms of employment and scale of operation and how the existing rules and regulations facilitate the development of industrial units within slums. For achieving the foregoing objectives of the research, the study had been divided into four stages. To begin with, making the baseline stronger and to understand the concepts before going on the field, a detailed literature review was carried out. Literature on the concepts of informality and informal economy was reviewed to have a better understanding of the nature of ‘informality’ to be encountered in the field. Also other research and documentation work on small scale industries in Dharavi was reviewed. Stage II of the research included a site visit to Dharavi to understand the on ground situation of the leather workers there. It included a reconnaissance survey of leather manufacturers and few key person interviews of the officials of Dharavi Redevelopment Project/Slum Rehabilitation Authority. In this stage, the data important for the analysis was collected which included surveys, DCRs and proposed plans for Dharavi Notified Area. A detailed survey of 46 leather units from three chawls of Dharavi was collected through a small questionnaire which included questions related to the employees, benefits they receive by the government, average productivity, working hours and average iv

wages. The data collected in stage II, was analysed and compared with the government’s redevelopment policies and regulations which was done in Stage III. After analysing and checking the flaws in government policies, recommendations were provided in the Stage IV. Dharavi, a slum occupying 240 ha of Mumbai, has definitely been a matter of concern for the Government of Maharashtra. A proposal for redevelopment of Dharavi as an integrated planned township was passed in the year 2004 by GoM. The government assigned the boundaries of this undeveloped swampy area and called it as Dharavi Notified Area. A Special Planning Authority i.e. DRP/SRA was appointed to carry out the planning and development process which divided DNA into five sectors. DRP proposes to cater to both residential and commercial establishments in Dharavi. However, the research focusses only on informal leather industries of Dharavi, hence, the policies and regulations have been studied only for the informal industry of DNA. Due to time constraint of four months, the study is based on the three chawls of Sector V of DNA. Initially established by Tamil Muslim Tanners and other backward classes in 1887, leather manufacturing industries in Dharavi have faced a major decline due to formalized and well-equipped industries being set up in the recent decades. Today, this leather industry employs up to 4,00,000 workers and generates $30 million annually (Mumbai Dharavi - Scenerios for Development, 2009) producing a wide variety of products like wallets, belts, handbags, belt of a wrist watch, tissue boxes, leather jackets and trays. Few associations like LIGMA have been established to promote and support the backward communities like ‘Chamars’ and ‘Dhors’ involved in leather works but do not include workers belonging to other communities. Production not being at a large scale, the manufacturers face difficulties in getting loans to run their business. Yet, there are few manufacturers who have a vast network and export their products to countries like UK, Paris and Singapore. The products made in these small hutments are also sold to seven star hotels like JW Marriot. Since 66% of Dharavi’s land is engaged in productivity (Mumbai Dharavi - Scenerios for Development, 2009), the government has proposed for the redevelopment of these industries as well. An industrial hub has been provided in each sector of the DNA. However, the total area under this is only 1.05 ha, which is 0.44% of DNA. Needless to say, the proposed area will not fit all the industries which means that the workers and the manufacturers will have to move out of their current work station. Moreover, the proposed land is not provided to all for free of cost. The manufacturer has to fit into three eligibility criteria to avail this benefit: i) the manufacturing unit has to be located on the ground floor, ii) the manufacturer should have official documents and licenses like shops and establishments license or a photo pass issued by the government, and iii) the date of issue of such document has to be prior to the ‘cut-off’ date which is 1st January 1995. This means that the business should be more than 22 years old on the existing premise. It is not tough for the manufacturers to get the license, because the requirements are not difficult to complete. To get the license, they just need a

photo pass issued by the government and a rent agreement of the premise on which they are running the business. But for this, the problem lies in the issue date of the license. When surveyed, all the units had the license issued by Shops and Establishments Act. The manufacturers were also into the same business since 40 years old or even for generations i.e. their business is actually eligible for reaccommodation. But due to their informal and illegal status, the manufacturers have to shift its establishment from one place to another. This pulls them back from being eligible for getting the space in the redevelopment process. As a result, pushing them into a vicious cycle. These workers are so used to their informality, that they do not mind shifting again to a new location. They are content with what they have now and indifferent to what they will have in future. The paper aims to see such inclusions and exclusions of informal industries by the state that if recognized, could help in achieving economic prosperity, reducing poverty and raising the living standards for the urban poor.

01 INTRODUCTION

Why Dharavi? A city of dreams, Dharavi, is a home to close to a million people who have occupied this swampy land for generations in search of employment and livelihood. It’s a rags-to riches story, metaphorically and literally: Dharavi’s informal economy fuels the rest of the city and manages it by producing day-to-day goods and services. Though all the informal settlements tend to have the same physical appearance and share the unvaried common concerns such as informally built structures or overcrowding, the needs and demands that configure their environment are very site-specific. General questions can be put forth regarding the issues of slum settlements and their part in urban areas, but specific answers can only be found by understanding the peculiarities of informality. Mumbai, especially Dharavi, one of the world’s largest slums, will be the research ground for this work mainly because of its symbiotic relationship with the formal city (Mumbai) and its unique productive capacity. It’s potential to absorb a myriad of urban-poor and quickly involve them into the productive sector makes it crucial for the debate around informality and its dynamics. Assessing the loopholes of current policies and regulations set for the informal settlements are integral for the debate about a city’s economic growth. It is an opportunity to forge a new path in the field of urban planning by establishing a model for rapidly developing economies to utilize and absorb mass migration and achieving economic prosperity, reducing poverty and raising the living standards for the urban poor. vii

Chapter 1 Introduction

Research Question Dharavi, popularly known as ‘Mini India’ is a huge unplanned settlement situated at the heart of Mumbai. A magnet for diverse communities and people, Dharavi attracts migrants from all over the country who come here in search of work and shelter. It is one of India’s “arrival cities” (Saunders, 2010), which till date has been successful in accommodating the ingression of migrants and have helped them to find a foothold in the city. Slum settlements are seen as an eyesore and such communities are usually neglected by the officials. It is a common misconception that improving informal settlements in cities only encourages more to spring up and exasperates an already difficult situation. But in fact, these settlements not only serve as residential colonies but are also a source of economic growth of the city. Then why do the authorities not accept and legitimize these slums? The research will be focussed on the operation of informal industries in slum areas and their potential role as the economic growth centres. It will assess:

What is the economic potential of the informal industries of Dharavi, in terms of employment and scale of operation?

ii.

What are the reasons for these industrial clusters to be set up or formed within the slum settlements?

iii.

How far the existing rules and regulations facilitate the development of industrial units within slums? Why are they considered as ‘informal’?

Aim The aim of the research is to find out the potential of slum settlements as commercial hubs and to identify the gaps in government’s policies and regulations that hampers the economic growth of slums. The research will be specifically carried out for informal leather industries in Dharavi, Mumbai.

Objectives The objectives of the research are mentioned as follows: 1. To check the economic potential of the leather cluster in Dharavi in terms of its scale of operation and employment generated (finding out the connectivity of Informal Leather Industry with the domestic and international market) 2. To study the existing policies and regulations of the MCGM and SRA for such industrial clusters in slum areas and assess how far they facilitate or hinder their development 3. To study the existing form of the units in the leather cluster and assess the extent to which they conform to the regulations and standards set by the development authorities. 4. Recommend measures that can be taken to formalize informal industries and recognizing their contribution in overall growth of Dharavi

Methodology As mentioned earlier, the present research is a modest attempt to study the potential of informal industries running inside the slums and to check whether the past and the present development plans have incorporated these industries as a part of development. The study will be focussed specifically on the leather industry in Dharavi. The leather industry operating in Dharavi is vast and its informal nature has multiple repercussions on the industry as well as on the economic and community development.

Stage I | Literature Review and Preliminary Data Collection To understand the basic concepts of ‘informality’ and ‘slum economies’, a literature review was carried out. This has been done to develop a base for the entire research. It also focussed on various studies that were already carried out in Dharavi. The preliminary data collection included a field visit to get a snapshot of Dharavi and a basic data collection from government offices like BMC (Brihanmumbai Municipal Corporation), SRA (Slum Redevelopment Authority), MHADA (Maharashta Housing and Development Authority), DRP (Dharavi Redevelopment Authority), TISS (Tata Institute of Social Sciences) and LIGMA (Leather Goods Manufacturing Association). It was also carried out to finalize the type of industry to be focussed on in the entire study, Leather Industry for this particular research.

Stage II | Field Survey: Leather Industry of Dharavi A field visit would be done for primary data collection. It will include a sample survey of 46 leather industries to find out the scale of operations and working conditions of employees. A detailed study of the industrial units will be undertaken to collect data on (i) no of employees (ii) scale of business (iii) area and structure of the units (iv) status of the units â&#x20AC;&#x201C; owned or rented? Legal tenure or illegal. Key person interview is also conducted for the same purpose.

Stage III | Analysis This stage will include a detailed study of DCRs and DPs of Mumbai specifically for slum settlements. This will include a detailed analysis and reflection on the gaps in policies and regulations set by the authorities for informal industries in slum settlements.

Stage IV | Recommendations This stage will provide basic proposals/recommendations to tell what could be done further by the government authorities to promote and preserve the informal industries.

Limitation of the study The scope of the dissertation includes a detailed study of three chawls of Dharavi in Sector V of Dharavi Notified Area (hereafter, DNA). As the research is limited for a span of four months, entire Dharavi and all the industries in it could not be covered. Hence, the study will be based on only the leather industries in three chawls of Dharavi. Primary survey inside the chawls is carried out during the field visits and secondary data is also collected. The primary survey includes reconnaissance survey of 46 leather units. The study depends on the information collected from both the primary survey as well as secondary survey.

02 CONCEPTUAL FRAMEWORK

Chapter 2

Conceptual Framework

Understanding linkages between Informality and Slums Informality within Urban Settings According to the 1972 International Labour Organization (ILO) report from Nairobi, where the term was first elucidated, “Urban informality applies to areas where the informal sector has a base, services are poor or non-existent, residents are invisible to legal frameworks, and harassment by authorities is common place”. Primarily at the edge of the state control, uncovered by the laws, with no interventions by authorities and urban planning bodies, informality is the default urban condition in the world’s most rapidly developing countries (Muniz, 2013). ‘Informality’ often implies to something which violates formal conventions and follows a different way from the norms. Colin McFarlane in his paper ‘Rethinking Informality: Politics, Crisis and the City’ provides an alternative conceptualization of informality and formality as forms of practice. It states that formality and informality could be thought of as territorial formations (slums as informal), categories of particular groups (informal/contractual labourers) or organizational forms (rule-based or unruly, structured or unstructured). To illustrate his concept, Colin provides four different conceptualizations for informality. First, informality as a spatial categorization. Informality is perceived to be territorialised within ‘slum’ settlements on the political, legal, social and economic and environmental margins of the region. (McFarlane, 2012) Second, informality in an organizational structure. Informality manifests unorganized structures and unregulated or contractual workers. (McFarlane, 2012) Third, informality as a government tool that includes specific domains and kinds of intervention like provision of services and resource allocation. (McFarlane, 2012) Fourth, informality as a negotiable value. This implies that if formality works through the fixing of value, that includes the mapping of spatial value, then informality operates through the constant negotiability of value. (McFarlane, 2012) Figure 2.1: Conceptualization of Informality

Spatial Categorization [legally, politically, economically]

Unorganized Structure [unregulated/ contractual workers]

Unequal Resource Allocation / Negotiable Value 5

Slums as Informal Settlements The Global Report on Human Settlements 2003 by UN-HABITAT states that informal settlements, often regarded as slums, traditionally means “housing areas with non-compliance of government regulations and standards, having insecure tenure status, lack of basic services and a place of multiple insanitary and deprived conditions”. These settlements, not only denigrated as legally illegitimate, but also visually, socially, and spatially illegitimate and are conceived to be the most visual expression of urban poverty. In developing countries, the term ‘slum’ simply implies a lower-quality or informal housing. Terms such as slum, squatter settlement, shanty, informal housing and low income community are often used interchangeably by the officials. According to UN-HABITAT report, there are certain key attributes of the slums that accounts them as ‘informal’ and are mentioned below. (UN-HABITAT, 2003)

/Lack of basic services The most significant feature of informal settlements is their deprived access to basic services like safe drinking water, sanitation facilities, drainage pipelines, electricity supply, and paved streets and footpaths.

/Substandard housing or inadequate and illegal building structures Slum settlements fail to follow the building standards set by the officials for residential units and are regarded as informal. These settlements comprises of a high number of substandard housing structures or semi-permanent structures built by the materials like mud and tin sheets. These units also fail to follow various space and dwelling placement bylaws.

/Overcrowding and High Density Overcrowding indicates lesser space available for each person. Informal settlements are often associated with high occupancy rates, cohabitation by different families and a high number of single-room units. The household size in Indian slums ranges from 4 to 10.

/Unhealthy living conditions and hazardous locations Due to the lack of access to basic services, slum dwellers are susceptible to illness and diseases. These unhealthy and unhygienic living conditions are resulted from open sewers, uncontrolled waste dumping, polluted environment etc. Since these settlements are generally formed by squatting on a piece of vacant land, the housing units may be built on hazardous locations like floodplains or waste disposable sites.

/Insecure tenure; informal or irregular settlements One of the central characteristics of slums is the lack of security of tenure and land titles to the slum dwellers. These residents due to squatting illegally, lack in providing any formal document of ownership of the land. Hence, their occupation of land is often regarded as ‘informal’.

Understanding Informal Economy The term ‘informal economy’ was first coined by an anthropologist, Keith Hart, in his study of urban Ghana which revealed that there exists a dual economy operating in the country (Papola, 1980). In most developing countries, a phenomenon which is evident to most of the observers of economic development is ‘Informal Sector’. It refers to those small-scale enterprises and commercial activities that are not recorded or registered with the government or any other authority but contribute large amount of products and services used by the people daily (UN-HABITAT, 2003). A report by International Labour Organization (ILO) clarifies that it is the enterprise or a firm which is regarded as formal or informal and not the individual owners. According to the ILO report, the small scale units are generally own-account enterprises where activities are carried out without regular employees often hiring the family members, occasional labourers or one or two workers on a regular basis. These workers are highly skilled labourers who are deprived of formal training and opt for informal path of acquiring skills. In an informal sector, owner has a limited access to formal credit and most of the capital needs are met informally through micro-financing systems (International Labour Organisation, 1972). Several writings on nature of informal sector manifest a contrast between formal and informal economy. According to John Weeks, the dissimilarity between the formal and the informal sectors can be understood in relation to “the organizational characteristics of exchange relationships and the position of activities vis-a-vis the state” (Weeks, 1975). This implies that the most distinguishing factor between the two sectors is the position of an enterprise vis-à-vis the state. Weeks states that all the government and private commercial activities under formal sector are officially registered, fostered, nurtured and regulated by the State in several ways like tax rebates, import subsidies, lower interest rates and licensing of operations. Such interventions by the government provides a window for formal industries to prosper a lucrative business in contrast to those informal enterprises which are not provided any such benefits. This variation between the sectors occur majorly during the processes of formalizing an industry because the informal sector lacking in resources, finds it difficult to fulfil each and every requirement outlined by the state in order to formalize themselves. Hence, formation and continuation of a vicious cycle (Fig 2.2): lack of resources hampering the formalizing of enterprise and the state not providing any benefits or resources to the informal enterprises. Weeks regards this behaviour of the state as step-motherly treatment given to the informal industries resulting in lack of access to resources. 7

Figure 2.2: Vicious Cycle of Informal Industries NO REGISTRATION

NO MONEY FOR TAXATION

NO IMPROVEMENT IN BUSINESS

NO FORMALIZATION

NO GOVERNMENT BENEFITS

Informal Sector economy encompasses certain characteristics which Papola (1980) has enumerated as follows:

/Small size of operations Informal Industries are generally self-employed industries or employs not more than ten labourers. As per the â&#x20AC;&#x153;Factory Actâ&#x20AC;? organizations which employ minimum ten labourers are eligible for registration. Due to non-compliance of minimum criteria, such industries operate on a small scale with few employees and hence, fall under informal sector.

/Informal Structure and Family Ownership Informal industries do not have a formal organizational structures. This means that, there is no proper hierarchy or division of labour in such units. The proprietor himself acts as an owner, manager, worker, and carries out all administrative functions required to run a firm. However, it is possible that an informal industry run by a large family has a formal organizational structure whereas a formal industry running on a small scale has an informal organizational structure. But in most cases, informal units run at a small scale, and thus leading to an informal organizational structure.

/Lack of access to Government favours This belief has developed over a period of time and has been a main area of controversy between the government and the informal sector. On one hand, the government/state claims that they have a sense of responsibility towards the informal sector and provide informal sectors all the basic benefits such as tax rebates, liberal credit schemes, and protection from international products and companies. On the other hand, the informal sector says they haven’t received any. Even if the government provided such benefits, they were unable to penetrate these informal sectors making their efforts worthless and meaningless. The steps taken by the government even had opposite effects. Shutting down of unregistered units in this sector to improve the health and working conditions, have led to rise in the unemployment rates, further deteriorating the conditions. Another point that make the efforts of government doubtful and leave informal sector helpless is that the government have not made any change in the existing property relations or distribution patterns, which could have positive impact on these sectors.

/Non – modern technology There is a misconception that the non – modern technology refers to foreign versus indigenous technology. Non – modern technology is basically a technique where work is done manually and is labour intensive. It also means that there will be low productivity when compared to capital intensive and highly mechanized techniques used in the formal sector. The informal sector uses these labour intensive techniques because of two reasons. Firstly, the affordability of capital intensive techniques in such sectors is not much, thus making these inaccessible. Secondly, it might not suit the given relative cost position of the labour and capital because the wages paid are very low.

/Competitive and unprotected market The markets for the products from informal sector are highly competitive. This does not draw a conclusion that all informal sector products are highly competitive and formal sector products are less competitive. Products such as soaps and detergents are highly oligopolistic and thus face a high competition in the market. This also means that a single enterprise for such products does not influence the market. On the other hand, products such as artefacts and handicrafts are not highly competitive in the market, although produced in the informal sector. It is however critical to note that the esteem acknowledgment per unit of item in the formal division is much higher when contrasted with the informal segment because of the substantial number of middlemen involved in the casual area. This highly impacts the scale of operations of units, wages and working conditions. The esteem acknowledgment is low by the promoting requirements confronted by the

informal segment and not on account of there is a radical distinction in the items created by the two.

/Unprotected Labour Market The labour market shows the high contrast between the two sectors. While the informal sector has no governance of the wages, which are very low, the formal sector has arranged the working conditions and wages as per the registration under Factoriesâ&#x20AC;&#x2122; Act. The working conditions in the informal sector are extremely difficult because of no regulation. The employees in the informal sector face a waiting queue, because they wait for an opportunity to work in the formal sector. In the informal sector, the supply of labour is always higher than the demand, thus creating a downward push on the wages. Not only this, the informal sector in the urban area experience migration on a large scale, especially from underdeveloped areas.

Slums as potential Economic Hubs Apart from being a place to dwell, a slum is also a vibrant and growing economic entity. These densely packed commercial centres play a crucial part in realizing the day to day consumption needs of its residents, while contributing to the growing urban economies in the developing countries as well. The Rockefeller Foundation estimates that slum economies caters to everyday needs of more than 830 million slum dwellers, representing over 30% of developing countriesâ&#x20AC;&#x2122; urban population, and are the primary source of employment for the estimated 400â&#x20AC;?580 million working slum dwellers. (Rockefeller Foundation, 2013). Almost all of this employment is informal, taking place both inside and outside of the slum. Howbeit, the economic opportunities of slum residents are restrained by neglect and hostile treatment by the state who are unsuccessful in protecting the rights of the informal workers and in providing adequate infrastructure in slums. These barriers restrict the economic mobility and income generation of slum dwellers, and limit access to affordable goods and services within slums. Municipal governments have very strong influence that may affect the slum economies as they make and implement policy and planning decisions. However due to bureaucracy, corruption, and misaligned incentives, municipalities and urban planners often make decisions that deliberately constrain the economic growth of the slums. (Rockefeller Foundation, 2013)

Case: Tokyo ‘When Tokyo was a Slum’ -Matias Echanove & Rahul Srivastava (When Tokyo was a Slum, 2013) The fuel that powered Tokyo’s economy, making it amongst the first world cities with gleaming architecture and sleek skyscrapers is the informal slum economies. It was during 1880s to the 1900s that Tokyo experienced a rapid population growth leading to the city’s geographic expansion. Much of the Tokyo’s older residences were extremely dense low-rise habitats and actually resembled the present compact and densely packed cities like Mumbai and Manila. Tokyo adopted an incremental way of urban development that resulted in making it the world’s most modern city. Due to the bombings and ravage in the World War II, a large part of the city was reduced to rubble and the present day small hamlets were smouldering ash pits. Post war, Tokyo’s government authorities, being in deficit was in no condition to reconstruct the entire city. So, it clarified one thing clear without mentioning directly: The citizens would rebuild the city. State will provide all the services and infrastructure, but besides that, the dwellers will be free to construct what they wanted on the footprint of the city. (Srivastava, 2013) A haphazard, unplanned residential units constructed then, resembled much of the Dharavi today. The city grew majorly without planning and gulped down the peripheral villages as it sprawled outward. Eventually, large farmlands got converted into congested residential and commercial spaces blurring the boundaries between urban and rural. But the central government never saw this growth as a threat and in fact, promoted the self-organization of its neighbourhoods for defence. It only focussed on essential needs, like the reconstruction of infrastructure and disaster relief (Srivastava, 2013). But the reconstruction of residential units was largely driven by self-reliance. During mid-20th century Japan increased its housing stock by 65 percent even though the public entities and private firms assisted only a small part of that. This implies that a domestic construction industry, depending heavily on homeowner involvement and traditional construction practices, controlled the redevelopment of residential neighbourhoods. The excavated skills and know-how of the ordinary citizens shaped the city’s future who relied on vernacular knowledge of construction, and eventually rebuilt entire neighbourhoods. The authors states that “It is difficult to imagine Tokyo as a vast, incrementally developing slum all the way through the 1970s and onwards. Yet in many ways that’s what it was, and this period has strongly influenced the city’s present form.” Even today, several shops selling construction materials could be found in residential neighbourhoods. Tokyo contains a perfect blend of the traditional and the modern built form with semi-permanent shack-like structures, made of wood and tin sheets on one hand and super-modern houses built of glass, steel and concrete on the other.

This pattern of the built fabric is not unique to Japan and could be found all around other developing countries of Asia, including in Dharavi. The only difference is the attitude of the Japanese government, which allowed haphazard neighbourhoods develop and consolidate freely. It neither discriminated/harassed them nor did they stigmatize them as “slums”. They were legitimized as upwardly mobile neighbourhoods, in stark variation with the manner unplanned settlements are looked at in Mumbai. (Srivastava, 2013) Beyond Tokyo’s incremental development is the development pattern that ensured city’s economic success. It houses a huge number of local businesses than most Northern American and Western European cities. This includes not only the eateries and restaurants, but also the convenience stores and laundries, public baths, bakeries, print shops, martial arts schools, offices, artisan workshops, and so on. But these mixed-use habitats and high-density, low rise neighbourhoods sprung up by default, not design. The city did not plan them, still regarded them legitimate and supported them. Electricity lines, Water and sanitation systems, and roads were later laid down into all parts of Tokyo, leaving no neighbourhood behind, regardless of how shabby or messy it looked. The Tokyo model that combined infrastructure from various agencies, and housing development by local actors explains why that city has some of the best infrastructure in the world today. If the contemporary Tokyo is assumed as a model for desirable urban development, it can be concluded that user involvement and incremental development is a key to it.

Summary The mixed-use, super-dense built form of informal settlements promotes and strengthens the economic, social and cultural networks. In the context where formal and informal dynamics complement each other in order to accommodate physical and economic growth, learning the potentials of the existing informal sector and working for their recognition by finding the gaps in government policies would lead to a further step in reduction of poverty and urban inequality. According to Rahul Srivastava, “Dharavi is in fact an upwardly mobile and highly functional neighborhood” (Srivastava, 2013). The root cause of the problem in such neighbourhoods is actually not their built form but that they are derogated and discriminated against by the authorities. Dharavi is a place where a house is used both for living and income generation. It’s a neighbourhood which intertwines both professional and spaces. It is a powerhouse and a hub for informal industries who serves not only the domestic markets but also caters to other parts of the world. A similar model of development like Tokyo’s could be of used for densely populated cities like Mumbai. Most of the cities want to wish away these slums and plan for a future with high-rises, glittering malls, wide boulevards and huge public plazas. Considering these slums to be squatted settlements on state’s or a private land, the officials only provides them with the most superficial municipal services so as not to encourage residents to stay. The government’s idea of growth is not about incremental development 12

but about redevelopment, that means demolishing slums and making something else in their place. Not opting for redevelopment, and instead recognizing the small enterprises running inside slum settlements like Tokyo, the entire neighbourhood could bloom into a â&#x20AC;&#x153;world-class manufacturing hubâ&#x20AC;? (Srivastava, 2013). Recognizing these informal industries city will mean finding paths to support an informal street vendor to own a stall in the market, which can then grow into a network of stores. It will mean seeing the pucca house in the slum not as simply sub-standard housing, but as a source of production and an asset for investment. It will mean considering and respecting the fact that the poor are captivated to cities because of opportunity, and that the city is the most efficient way to provide that opportunity. It will mean embracing the informal city, and all it has to offer.

03 RESEARCH SETTING

Chapter 3

Research Setting

Dharavi: Looking Inside Dharavi is situated between the Western and Central Railway lines of Mumbai and has Mithi River to its north. Located in the G-north ward of Mumbai, Dharavi is one of the largest slum settlements on Earth. Dharavi is also at the intersection of Sion and Mahim Link roads, with easy access to Mumbai airport. It is neighboured by Bandra-Kurla Complex, recently developed high income office-area and to its west is Bandra, one of the most expensive areas of Mumbai. Even after being the 2nd largest slum in Asia, Dharavi is amongst the most densely populated areas of the world, having a population density of over 277,136/km2 (717,780/sq. mi) (Dharavi, 2017). The narrow street structure of the settlement makes the space very incommodious and uncapacious. Having closeness to Mithi River and inadequate drainage systems, Dharavi often becomes vulnerable to floods during monsoon. Spread over an area of 2.165 km2, the estimated population of Dharavi varies from 600,000 to 1,000,000. Talking about the religion mix, Dharavi is dominated by Hindus, which comprise of nearly 60% of its population. Another 33% of the population are Muslims, whereas the average population of Muslims in India is 13%. Apart from these two religion, Dharavi also shelters Christians, Buddhists and some minority religions. There are numerous mosque, temples, churches and other religious structures in Dharavi. The people who live here have migrated from different states of India and live on rent by paying as low as â&#x201A;š100 a month, in one of most expensive city India. The young as well as the old work in this low-rise building style area. It is not the lack of hard work, enthusiasm or social capital that the people here are poor. It is the lack of infrastructure, and other opportunities that hold back people form progressing at the pace the countryâ&#x20AC;&#x2122;s economy is progressing. Almost three-fourth of the waste produced in Mumbai is recycled in Dharavi. The leather and embroidery products of Dharavi not only caters to the citizens of their own country, but also to those of New York as well as Paris. Residents work in a variety of fields. Some contribute in pottery work, textile goods manufacturing etc., while other work on tanneries, animal skin production, and leather goods (Dharavi, 2017). (Mumbai Dharavi - Scenerios for Development, 2009)

History of Dharavi Dharavi, situated on the northern tip of the island city of Mumbai, was the home of the Koli fisher folks and the Mahim Creek was their means of income for years. The Portugese were the principle 15

homesteaders to assert some authority to the seven islands of Bombay in the sixteenth century: they constructed a church and a small fort at Bandra, on the opposite shore from Dharavi. The Kala Quilla, formerly known as the Riwa Fort at Dharavi, was established in 1737 by the second British governor of Bombay, Gerald Aungier, on the banks of the Mithi River. It was part of the larger Britishconstructed Bombay Castle (Slum Rehabilitation Authority , 2017). The expansion of Dharavi is intertwined with the pattern of migration into Mumbai. The early dwellers to settle there did so because the land, predominantly utilized as a dump yard, was free and unregulated. The swampy area gradually developed more solid but even till the mid-1900s, parts were so damp, that people had to construct foot-bridges to traverse. By the late 1800s, the kumbhars (potters) from Saurashtra moved to Dharavi and set up their area (Kumbharwada), and similarly the Tamil Muslim Tanners (because of the proximity of the abattoir in Bandra). Embroidery Workers and craftsmen and from Uttar Pradesh established the readymade garments trade, and Tamilians set up a thriving business, making savouries and desserts. Along these lines, Mumbai being the business capital of India with boundless opportunities for employment pulled in individuals from all parts of India, regardless of religion or region. Majority of the land in Dharavi is possessed by the state and other government organizations and so was the most appropriate for the migrants to infringe and build their informal settlement. Dharavi in this manner, turned into a stunning mosaic of villages and townships from all over the country belonging to different religions, languages and entrepreneurs, all surviving shoulder to shoulder (Slum Rehabilitation Authority , 2017). As long as Dharavi was on the edge of the city, the main city was not influenced by the squatters and their activities. But as Muslims moved northwards and its populace expanded with new enterprises, the pressure on land increased, and Dharavi was drawn into the hearth of the city. Once, Dharavi was a marshy, fishing village but today it is a ghetto or rather group of ghettos (Slum Rehabilitation Authority , 2017). The lionâ&#x20AC;&#x2122;s share of the land ownership was with government and Municipal Corporation of Greater Mumbai (MCGM). The migrants squatted on these lands and constructed hutments in an unplanned manner. In 1971, the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, was passed to carry out the improvement in Dharavi. A census of hutments was carried out in 1976 and photo-passes were issued to slum families. As part of slum improvement measures, residents were provided with toilets, taps and electrical connections. Sewer and water lines were laid down along the Sion-Mahim Link road, the 60-feet and 90-feet roads that were also built around this time (Slum Rehabilitation Authority , 2017).

Informal Production Units in Dharavi Growing since the beginning of the 18th century between two main rail lines and a highway in the centre of Mumbai, Dharavi in itself is a world full of hope and despair in between rural and urban logics, a place with formal and informal dynamics. It is a land of opportunities, with unending exposure and ceaseless struggle where dreams are moulded and used as an engine for Mumbai’s rampant economic growth (Muniz, 2013). Dharavi is not only a place to dwell but it also houses a myriad of small scale industries, which have a substantial amount of share in the city’s economy. The residents of these informal settlements generally end up in setting industries in their homes, using them as ‘tool houses’, thus demonstrating a self-created special economic zones within the settlement (Yardley, 2011). It has been estimated that the annual economic output from these small scale units ranges from $600 million to over $1 billion (Rockefeller Foundation, 2013) but no one can know for sure. A large part of the production units of Dharavi are unregistered and the turnover is never entered in the books of accounts thus, making it difficult to get an overview even from inside the area. Figure 3.1: Production Units in Dharavi

Source: SP+a and URBZ Dharavi contains all kinds of industries from big businesses like recycling, plastic industry, printing and leather to small manufacturing units like pottery and embroidery that are run by highly qualified 17

workers catering to the entire Mumbai. Apart from serving the home city, products manufactured in Dharavi also provides for international markets. These goods are majorly produced from recycled material that are shipped to and assembled in different parts of the world. The most banal everyday objects including paper products, leather accessories, plastic tags used for underwear holders, suitcase wheels, and paper files are found in European stores. But the production does not limit to only these products. Many high-tech products like surgical threads produced from intestines of goats for Johnson & Johnson are also manufactured in this shanty town. Apart from the secondary sector of economy, Dharavi is also a home for various services like beauty parlours and fish sellers. Most of the commercial activities in Dharavi are run from home. Families are engaged in common investments and different producers co-operate with neighbouring workshops. Dharavi houses a million population, full of self-made people who have potentially created job opportunities on their own without any help from State agencies or organizations and are not in any way onerous to society (Dharavi: Documenting Informalities, 2008). Mentioned below are the details of few production units in Dharavi: /The Recycling Industry The recycling industries of Dharavi generates revenue by turning around the discarded waste of not only the citizens of Mumbai, but from all around the country and abroad as well. It is difficult to believe anything that is not made or reprocessed here (Chandan, 2014). From dumping garbage to exporting daily use recycled products, all the activities take place in Dharavi. After sorting, different kinds of plastic goes to different recycling workshops to be ground or melted. Water Bottle Recycling is one of the major recycling industries in Dharavi where the plastic is chopped into small flakes that is either exported to parts of China or melted into pellets for further use in plastic industry. (Dharavi: Documenting Informalities, 2008) /The Leather Industry Leather production was one of the oldest industries to set up in Dharavi. All sorts of activities involving slaughtering, skin and leather treatment are performed by caste-less or non-Hindu groups like â&#x20AC;&#x2DC;Chamarsâ&#x20AC;&#x2122;. Leather Tanneries were first established in 1800s by Tamil Muslims who migrated to from Tamil Nadu to Mumbai. In the late 20th century however, all sorts of tanning activities were banned in Dharavi as this industry cannot follow industrial and environmental regulations and hence, posing a serious threat to environment. Though many units were banished and shut, yet, many units survived as the workshops that worked on the later phases of the procedure. After the tanning in the faraway places the rough leather is sent to Dharavi for treatment. The treated leather is then coloured and dried and then exported/sold or is stitched into consumersâ&#x20AC;&#x2122; goods and exported / sold. (Royal University College of Fine Arts, 2008)

/The Printing Industry Every part of printing industries could be found in Dharavi ranging from graphic designers to art directors, editors and printers who have local and international market as well. These printing industries are well equipped with latest technology and printing techniques including peddledriven letterpress machines, screen printing studios, German offset printing presses and digital printers. The printing industry in Dharavi works at both small scale and large scale producing materials for use within Dharavi to producing Bollywood posters and roadside advertisements that are up to few meters wide. (Dharavi: Documenting Informalities, 2008) /Potteries Pottery business set up by the Kumbhars of Gujarat, is as old as Dharavi itself and hence, holds a special place in this community. All the houses in Kumbharwada have a peculiar design and accommodate a potterâ&#x20AC;&#x2122;s wheel and opens out into an open space where there is a shared kiln for firing the pots for two or more houses. These houses are long and have two foyers: one reaching to the yard where production takes place and the other faces the street where the goods are displayed and sold. (Sharma, 2000) /Textile Industry The textile or garment industry is a big part of Dharaviâ&#x20AC;&#x2122;s production. It houses a lot of retail shops dealing with textiles especially embroidery work by artisans from Uttar Pradesh. Garment Industry in Dharavi caters mainly to the local and national market and have remained immune and managed to survive in the ups and downs of the export trade. A small workshop produces around 500 to 600 shirts a day. These highly skilled labourers are mostly from Bihar and Tamil Nadu and are paid on a piece-rate basis. Most of the machine embroidery and zardozi work is carried out by men from Bengal. (Sharma, 2000) /Food Industry The worldâ&#x20AC;&#x2122;s most complex lunchtime food distribution network operates in Mumbai where more than 200,000 dabbas or tin lunchboxes are collected from kitchens and delivered to the workers and offices all over the city. Around 5000 dabbawalas deliver over 200,000 lunch boxes in the entire Mumbai and work for a nominal fee. (Dharavi: Documenting Informalities, 2008)

Government initiatives for development of Dharavi In 2003-04, Government of Maharashtra (hereafter, GoM) planned to carry out a redevelopment of Dharavi as an integrated planned township. An action plan was approved by Government Resolution (hereafter, GR) dated 04.02.2004 for implementing the redevelopment process in Dharavi. It was decided to develop it by using land as a resource to cross-subsidize the cost of development through

sale component on the basis of Slum Rehabilitation Scheme by dividing it into sectors and by appointing developers for the same (Notifications and Notices, 2012). GoM also notified Dharavi as an undeveloped area and appointed a Special Planning Authority (hereafter, SPA) i.e. Dharavi Redevelopment Project / Slum Rehabilitation Authority (hereafter, DRP/SRA) to carry out the planning and development process. (Slum Rehabiliation Authority, 2012)

Dharavi Notified Area (DNA) Figure 3.2: Existing Land Use of DNA

Source: (Dharavi Redevelopment Project, 2016)

To carry out the process of redevelopment, the government defined the boundaries of Dharavi and assigned the area known as Dharavi Notified Area. Fig. 3.2 is the land use map of DNA showing the boundaries. Government in Urban Development Department (hereafter, UDD) notified the lands measuring about 178.30 Ha bounded (as follows) as Dharavi Notified Area (hereafter, DNA): 20

On or towards north by Sant Rohidas Mard (Sion-Bandra Link Road)

ii)

On or towards north-west by Mithi River/ Mahim Creek

iii)

On or towards north-east by junction of Sant Rohidas Marg and L.B.S Marg

iv)

On or towards east by Central Railway Tracks

On or towards south-east, west and south-west by Western Railway Harbour Tracks

Similarly, Government in UDD the lands measuring 62.05 Ha bounded (as follows) as DNA: i)

On or towards north-east by the boundary of ‘H’ block of Bandra Kurla Complex (hereafter, BKC)

ii)

On or towards east by Refuse Transfer Station outside ‘H’ block area as per planning proposal of BKC

iii)

On or towards south-east by LBS Marg

iv)

On or towards south by southern boundary of Sant Rohidas Marg

On or towards south-west and west by western boundary Piwala Bungalow

(Slum Rehabiliation Authority, 2012) Land Ownership in DNA In Dharavi, major portion of the land is owned by MCGM. The remaining part of the land belongs to private, railways, state government and other public authorities. Table 3.1 below shows the details of land ownership in DNA. Almost 80% of the land is owned by the government in Dharavi. Only 17% of the land lies with the private sector. To carry out the redevelopment process, the government follows the land acquisition policy defined by the GoM. In this, a private land is acquired by the government in order to start the redevelopment of that particular land parcel. Fig. 3.3 is the land ownership map of the DNA. (Dharavi Redevelopment Project, 2016) Table 3.1: Land Ownership of DNA Ownership MCGM + MCGM leased +

Ha.

Percentage

147.77

61.48

Private

41.18

17.13

Railway

8.92

3.71

37.68

15.68

4.8

240.35

100

Cemetery + Road

State Government + Creek Land Properties without ownership title to be treated as government land Total

Figure 3.3: Land Ownership Map of Dharavi

Source: (Dharavi Redevelopment Project, 2016) Dharavi Redevelopment Project The Dharavi Redevelopment Project’s vision for the future plan is “To cater to the strengths of the people of Dharavi and present them with an opportunity to break free from the shackles of being perceived as slum dwellers and nurture their ambitions of integrating with the city as equals and benefit the city as a whole”. The strategy of planning and subsequent redevelopment is to ensure the support to all stakeholders through a win-win proposal. The proposal is designed in a way to improve the living standards of the residents on one side whereas keeping socio-economic and cultural fabric intact on the other. (Dharavi Redevelopment Project, 2016)

Sectorial Approach for Redevelopment of Dharavi In order to prepare the planning proposals, two surveys were carried out in DNA to study the socioeconomic status of the area and prepare the existing land use. Prashant Survey was conducted in the year 2004-05 by SRA/DRP to note the existing structures of Dharavi with their uses. Mashal Survey, 22

during 2007-2009, was initiated to prepare computerized cadastral plan showing each existing hut, amenities and infrastructure. For the convenience and ease of survey, DNA was divided into 5 sectors which were further divided into 97 clusters and 197 sub-clusters locally recognized as Nagars/wadas/societies. A bio-metric survey was carried out where in documents were collected from the slum dwellers required for deciding the eligibility. Only ground floor structures were taken into account as per the government policy of eligibility. The structures were marked with their uses like Residential (R), Residential cum Commercial (R+C), Commercial (C), Industrial (I) and Amenities. An ID card was also generated for each slum structure and photo passes were issued to them so as to decide their eligibility in the later stages of development. To carry out the redevelopment process, DNA has been divided in to 5 main sectors with each sector further divided into different phases. In all, it has been divided into 15 phases of redevelopment making it easy to manage, implement and deal with the residents of Dharavi. The sectors are formed based on the major arterial roads as boundaries. These sectors are sufficiently large areas so as to facilitate for providing civic amenities such as schools, play grounds, retail markets etc. at sectorial level. (Dharavi Redevelopment Project, 2016) Figure 3.4: Sectoral Division of DNA

Site Selection Dharavi is spread over an area of 240 ha and thus, studying the entire area in a span of four months is out of scope. Therefore, a part of Sector V, that is, three chawls of Dharavi have been selected for studying. Since the study focusses on only the leather industries of DNA, this sector has been selected keeping in mind the presence of the majority of leather manufacturing units here. Fig 3.5 and Fig 3.6 of section 3.4.1 and 3.4.2 respectively, shows the land use and types of industries in Sector V of DNA. This has been identified on the basis of observation and by asking the shop owners of finished leather products located on the main roads of Dharavi. Earlier, for Sector V, the planning

Table 3.2: Details of Sector V of DNA Sector V

authority was Mumbai Metropolitan Region Development Authority (hereafter, MMRDA) who sanctioned a plan for Sector V known as ‘H – Block’ of BKC.

Use

Number of hutments

Percentage

Residential

8515

83.35

Residential + Commercial

130

1.27

Commercial/Industrial

1571

15.38

Total

10216

100

MMRDA had implemented some part of Sector V in the form of Mahim Nature Park and a road widening. No other reservations were implemented in H-Block mainly because of the encroachments. Now, SRA is the SPA for Dharavi where H – Block has been said as Sector V for the redevelopment process. Table 3.2 shows the number of slum structures in Sector V along with their use. Figure 3.5: Land Use of Sector V

Source: (Dharavi Redevelopment Project, 2016) Sector V also has a long history attached to it due the presence of Kala Killa, also known as Riwa Fort which was set up during the colonial period and the slum settlement of the famous Koliwada Fishermen who were the first to come to Dharavi. It also has few major landmarks like ONGC, BEST 24

Bus Depot, Gold Filled Plaza and Sion Railway Station. Situated on the Sion-Bandra Link Road, which runs from west to east of this sector, are the huge number of shops selling only leather products ranging a leather belt to leather jackets and suitcases. In the interiors of the slum settlements, a lot of slum residents are engaged in the leather goods manufacturing. Some of them even export their products to countries like Singapore, UK and Paris. So to cater to the objectives of the study, i.e. to see the extent of scale of operations of the leather manufacturing units and so check how the government has facilitated or neglected these informal units, a detailed survey has been carried out for three chawls of sector V: i)

Parsi Chawl

ii)

Vitthal Mandir Chawl

iii)

Kajrolkar Chawl

Land use of the Site Figure 3.6: Land Use Map

Fig. 3.6 shows the existing use of the hutments of the selected chawls of Sector V of DNA and their surrounding buildings. Predominantly, the use of the hutments is for residential purpose. Yet, there 25

are a number of huts which have commercial and industrial activities running in them. At the edge of Sion-Bandra Link road, the units are used for commercial purpose where all the shops are selling leather made products. Needless to say, these products come from industries which are situated inside the slums. Combining these three chawls having total 398 slums structure, 68 are engaged in informal businesses out of which 46 units are engaged in

Figure 3.7: Land Use Share

leather manufacturing. In all, there are 398 slum structures in these chawls out of

63%

15%

which 37% (Fig. 3.7) of the chawls are engaged in commercial and industrial

activities. Almost all the slum structures are two storeyed where one floor is used for manufacturing purpose and other is used as a residence. Around 7% (Fig. 3.7) of the total huts are such which are purely used for economic activities. At the time of redevelopment, it is not only the residents who will have to be accommodated but also these informal industries.

Types of Industries on Site Figure 3.8: Types of Industries

As mentioned earlier, Dharavi has a substantial number of various manufacturing units and a large population is involved in commercial

Figure 3.9: Share of Industries

and industrial activities like leather, garment, pottery, food process, plastic

68%

18%

10%

recycling and many more mostly in the

informal sector. Similarly, in the selected chalws of Sector V, several people are engaged in leather making, embroidery, garments and nylon/foam bags. However, due to the presence of raw material i.e. leather sheets and proximity to the Sion railway station, leather industries have a greater share in this sector which is clearly visible in Fig. 3.8. The brown colour represents the informal leather manufacturing units. Out of the total 68 industries in this area, 68% (Fig. 3.9) units are engaged in leather manufacturing. After leather, a good number of units are engaged in textiles and garment making.

04 DATA DESCRIPTION AND HANDLING

Chapter 4

Data Description and Handling

Data Framework To determine the profile of informal leather industries of Dharavi and to further analyse their potential, the following data was gathered from the primary and secondary source: /Types of industries running in the slum structures /Basic information about the type of leather goods manufactured, average size of the unit, average working hours of labourers and minimum wages to the workers /Scale of operation (whether the product is sold locally or even in the international markets) /Number of labourers working in each unit /Floor occupied by the manufacturing unit /Type and number of licenses each unit has /Age of the business/unit /Proposed plan by DRP, SRA for the commercial and industrial units /Eligibility criteria and DCRs proposed for the commercial and industrial units /Licensing Requirements

Data Requirement and collection To fulfil the purpose of the research, the data was collected by two methods; /Primary Data Collection through a Questionnaire and Key Person Interviews /Secondary Data Collection from DRP, SRA To gather the information about the employees and manufacturers, a questionnaire was prepared in a concise manner which included questions related to the type of leather goods manufactured, average working hours, average units produced, minimum wages, licensing and an open ended question regarding the benefits provided by the government. The questionnaire is attached in the Appendix 1 of this report. The primary survey was conducted only for the leather industries of the three chawls of Sector V of Dharavi. Due to the lack of time, it is difficult to connect with the entire population of such a large area and hence, survey of only 46 leather units was conducted. The target population of the survey was the manufacturers and the labourers of the informal leather industries.

Key person interviews were also carried out to know about the scale of operations of the leather manufacturers in Dharavi. This gave an idea about the backward and the forward linkages of the production chain of leather goods. Key interviews of few officials of DRP, SRA and Shops and Establishments Department, BMC was also conducted to know the details about the proposed plan for informal industries of Dharavi (specifically Sector V) and their licensing requirements. Secondary data collection included the maps and tables providing sector wise information about the DNA. It includes existing landuse plan, proposed landuse plan, ownership details, sector wise segregation of DNA and sector wise information about the total number of slum structures along with their uses (residential/industrial/commercial). The table 4.1 provides the gist of the data collected and their source. Table 4.1: Data and its Source Data Collected

Source

Types of industries running in the slum structures

Observation

Basic information (type/sizze/working hours) Scale of operation

Questionnaire Key Person Interview + Questionnaire

Number of labourers working in each unit Floor occupied by the manufacturing unit

Questionnaire Observation

Type and number of licenses each unit has Age of the business/unit

Questionnaire Questionnaire

Proposed land use plan by DRP, SRA Eligibility criteria and DCRs Licensing Requirements

Official Documents + Maps Official Documents Key Person Interview + Official Documents

4.3. Data Processing After collecting the data the primary survey and the secondary survey, this data was processed in ArcMap in GIS to locate the data spatially on the map and to carry out further analysis. The data from the secondary sources was compared with the existing situation found out by the primary survey to know whether the regulations and policies of the government facilitate or hinder the growth of the informal industries.

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05 ANALYSING THE LEATHER MARKET

Chapter 5

Analysing the Leather Market

Snapshot of the Leather Industry of Dharavi

History Leather industry was one of the first industries of production established in Dharavi by people from backward communities and schedule castes or particular communities like Chambhar, Dhor, Chamars etc. These socially backward and non-Hindu groups did all forms of slaughter, skin and leather treatment. In the mid â&#x20AC;&#x201C; 1800s, one of the first tanneries were set up by the Muslim Tanners who migrated from the Tamil Nadu to Mumbai. They settled in what at the time was the outskirts of Mumbai. The city soon grew around them and they had to move out parts of their production that were regarded as unclean and not appropriate for the city centre. The tanners shifted to the north in the swampy outskirts of Mumbai and the production grew slowly as more workers migrated in to Mumbai, searching for work. Needless to say, tanning is a hazardous job and is unhealthy for the labourers and a threat to the environment and thus, appropriate precautions must be taken. The situation in Dharavi, with its lack of infrastructure means that even the most rudimentary laws concerning pollution or the health of the workers cannot be followed. The leather hides and the by-products from the tanning production spreads a strong odour and can be a potential source of infectious disease in the high temperature. Tanning requires extreme cleanliness and hygiene in order to be odourless and in a poor area without a functioning sewage system or clean water it is difficult to keep the level of hygiene needed. (Dharavi: Documenting Informalities, 2008)

Concerns Being a hazardous industry, tanning production becomes a threat to the environment as it cannot follow industrial or environmental regulations. In late 1800s, the contamination of Mahim River started at the beginning of the land filling. With the rapid expansion of the chemical tanning industry in Dharavi, led to the release of toxic emissions into the river, which finally killed all the fishes in the river, which in turn, left the traditional fishermen community without their means of income. In the 1980s the officials banned all kinds of tanning business within Dharavi or central Mumbai, directing the production to Devnar, north of the Mumbai region. The leather industries now buy tanned hides from Devnar where approximately 40,000 goats are slaughtered every week. Some official tanning activity still takes place closer to Dharavi. (Dharavi: Documenting Informalities, 2008) 33

Market The leather industries in Dharavi today, are involved in the wide range of production activities like final processing of ironing the leather, smoothening them, colouring them etc. Some parts of the processed hides caters to the national and international markets, and others stay in Dharavi where a whole production chain of leather goods can be found. Dharavi has a wide variation of goods and qualities. Many of the shops in Dharavi are formally registered, that make business in the global market by exporting the finished products. But even though the company is formal, the production is not. Not many of the workers are covered by any laws or legislations and many of them are underpaid. Parts of the production are often subcontracted to others workers to do certain parts of the manufacturing such as sewing, applique or braiding. This chain of production could easily be mistaken as a succession of entrepreneurs. But the further away from the registered company the production lies, the more informal and unsecured the conditions are for the workers. The leather work in Dharavi is more informal in nature and the workers engaged in it work as selfemployed/ own account workers. The products they prepare are either sold in the market or receive orders from the big commercial entrepreneurs on some remuneration. The labour problem is observed in Dharavi today as this unorganized segment of the industry does not guarantee regularity of the job and other kind of social securities. Family members assist in the home business to add more units in the production and get profit. The marketing is almost nonprofessional in case of the leather products produced by these artisans. The labour in this industry is migrated labour. The structure of this business in not proper and formal in nature. (Dharavi: Documenting Informalities, 2008)

Existing Organizations for Leather Workers 5.1.4.1

Leather Industries Development Corporation of India (LIDCOM)

LIDCOM was established on 1st May, 1974. As per GoM Resolution, it has been brought under the control of Social Welfare Cultural Affairs and Sports Department from Industries Department. The said decision was taken in order to give financial assistance to the community people mainly from the schedule caste category called â&#x20AC;&#x2DC;Charmakarsâ&#x20AC;&#x2122; or â&#x20AC;&#x2DC;Chambhar . LIDCOM aims to promote & boost the Leather Industry and people engaged in Leather Industry of the Maharashtra State, Government of Maharashtra has established a company under the Company Act, 1956. The Corporation's objectives are broadly divided into Commercial and Social activities. The Commercial activities - To arrange procurement and supply of raw material for those engaged in the Leather Industries or to make necessary arrangement for production of Leather Goods. To ensure quality control in order to get qualitative product. To take necessary steps for improvement in production techniques. To assist and act as an agent for sale of finished products by opening of show 34

rooms, exhibition counters within and outside the state. To promote the sale of finished leather goods in foreign market. To procure capital or financial assistance and to sanction loans, subsidies and Resources, machinery, equipment for promoting leather and leather based industries and other industries of Scheduled Caste Charmakar Community. To give financial assistance ,loans, subsidy to Charmakar Community(Scheduled Caste) for rendering any legal service, transport, leather and other industries, agricultural and other sectors for overall development of said community. It also aims at providing financial assistance to the leather artisans from the state and central government sources to develop the business and create the market. 5.1.4.2

Leather Industry Goods Manufacturing Association (LIGMA)

It was established in Dharavi, Kala killa for the development of the leather industry and the leather artisans. It aims to organize them and improve their economic, psychological, educational and social conditions. Its main objectives are: /To bring all the leather workers together and to organize them. /To solve the problems faced by them in the production process /To support them financially through the government schemes. /To train, educate them through the seminars, workshops, lectures, and exhibition. /To carry the leather research and communicate. /To curtail the sales tax for the marginal artisans. /To import the required raw material and export the finished goods. /To make market available for the raw leather and tanneries. /To develop clusters for business expansion. Even though the setup of LIGMA is an attempt to develop the leather business in Mumbai, the situation is different today. After having talk with the one of the office bearer Mr. Mane, it was known that the old workers have almost stopped business due to problems; the numbers have come down from thousands to a mere few hundreds.

Zooming in to the Site - Analysis Basic Profile of the Leather Units As mentioned in the foregoing chapters, the study focusses on the leather manufacturing units located in the selected chawls of Sector V of the DNA. Leather Industry is one of the major industries of Dharavi which employees up to 4,00,000 workers and generates $30 million annually (Mumbai Dharavi - Scenerios for Development, 2009). A wide variety of products are manufactured in these small hutments like wallets, belts, handbags, belt of a wrist watch, tissue boxes, leather jackets and trays. Not only these items are sold in the local market, but are also exported to other parts of the world specifically in UK, Paris and Singapore. The labourers here are highly skilled and do not make use of any modern equipment. Most of the work is carried out manually. The unit size of these home35

based industries ranges from 110 ft2 to 260 ft2. Fig 5.1 is a representation of a typical manufacturing unit in Dharavi. Each unit has 5-10 workers working on one or two sewing machines for making the finished product. Figure 5.1: Plan and Elevation of a Typical Manufacturing Unit in Dharavi

Source: Sp+a and URBZ The labourers working in the manufacturing units either come from somewhere in Mumbai or stay within this small unit. The working condition of the labourers is not very satisfactory as they are deprived of the basic day to day amenities. Few workers are permanent employees and earn on a monthly basis where the salary ranges from ₹8,000 to ₹10,000 per month. Other workers work on a piece rate basis where the rate per piece depends on the product being made. In case of wallets, the piece rate is as low as ₹30 per piece whereas in case of leather jackets, the piece rate may be as high as ₹300 per piece. However, the workers have to really spend a lot of their time to earn these wages. The average working hours are 12 hours per day. Figure 5.2: Leather Unit from Inside

Economic Potential of Leather Industry One of the motive of the research was to find out the economic potential of the informal industries running inside the slum hutments. The objective of the study was to find out the connectivity of leather industries with local and international market. This had been achieved by finding out the scale of their operations and employment generation. /Scale of Operation The manufacturers of Dharavi have gained success in selling their products to different parts of the world. These products can be even seen in the air conditioned showrooms of posh areas of Mumbai like Colaba and 7 star hotels like JW Marriot. The leather goods like handbags, purses, suitcases are exported to countries like UK, Paris and Singapore. Figure 5.3: Scale of Operation

Fig 5.3 is a map which spatially shows the manufacturing units which export their products those which sell their products in the local markets. This map is prepared only for the site area which includes the three chawls of Sector V of DNA.

In the three chawls, with total 46 leather manufacturing

Figure 5.4: Share of Export and Domestic Sales

units, 33% of the units export their products to UK and Singapore. 67% of the units sell their products locally or country wide. Amongst these 67%, few units sell their products to some

Export 33%

brand who in turn, further export their products at higher prices. The Fig. 5.5 below explains the chain of production of the manufacturing units at Dharavi. The manufacturer produces a sample of his product and shows the sample to a number of

Local 67%

retail shops located at the Sion-Bandra Link road. If the shopkeeper likes the product, he gives the order for making a specific number of that product. The manufacturer makes the product and sells it to the shopkeeper. Till here, the chain remains informal. After the product is displayed in the showroom, it is sold to the customers or even exported in other countries through a formal process. Sometimes it even happens that the manufacturer is directly in contact with big companies and companies in abroad. For example, there were manufacturers who were selling tissue boxes and leather trays to JW Marriot and exporting the car kits to Mercedes. Figure 5.5: Production Chain

sample

Orders

Manufactures the product as per order and gives it to the shopkeeper

The product is then sold in the local and international

/Employment Generation Though being informal, the leather industries of Dharavi do employ and livelihood support to a number of migrants and residents of Mumbai. However, very few units that were surveyed had more than 10 employees. In total, 173 labourers were employed in these 46 leather units of Dharavi. The average number of workers each unit has is 3 workers. Fig 5.6 shows that 77% of the units employed 2-5 workers. Only 7% of the units were

Figure 5.6: Share of Number of Employees

there in which only the owner himself was working. And only 5% of the units

77%

11% 5%

surveyed had more than 10 employees. According to ____, the criteria for being registered as a small scale industry, the minimum number of employees must be 10. Due to less employment, these industries are tagged as â&#x20AC;&#x2DC;informalâ&#x20AC;&#x2122;. The reason for less number of labourers in each unit is because many of the workers are underpaid and due to the reforms in technology, people are reluctant to do the manual work. Fig 5.7 represents spatially the number of workers throughout the site. Figure 5.7: Number of Workers Employed

Government Policies for Industries /Development Control Regulations All the commercial and industrial structures with their existing built up area up to 20.90 m2 (225 ft2) carpet area or whichever is less shall be provided to the eligible person free of cost as a part of the rehabilitation project. Any area in access of 20.90 m2 would be sold to the extent of area allowed in the Table 5.1. Where a person has both residential and commercial premises without common wall between residential and commercial premises, for commercial or industrial activity in the slum/ pavement, he shall be considered eligible for a residential/Commercial unit including built up area for commercial or industrial activity, both free of cost and carpet area of such unit shall not exceed 25m2. (Slum Rehabiliation Authority, 2012) However, re-accommodation would be provided only to the non-polluting and non-hazardous industries running in Dharavi. For leather manufacturing, those units involved with leather tannery are considered as hazardous industry and would not be provided with this benefit. However, the units involving activities related to leather goods manufacturing come under non-polluting and nonhazardous industries and hence, are eligible for re-accommodation. (Dharavi Redevelopment Project, 2016) Table 5.1: Area provided to Industries in Redevelopment Carpet Area to be Provided (sq.ft) Area

Area to be provided with extra cost

Existing Carpet

provided

With 10%

With 20%

With 30%

Area (sq.ft)

free of

reduction

cost 225 to 250

225

Nil

251 to 1000

225

251 to 1000

Nil

1001 to 1500

225

251 to 1000

1001 to 1500

Nil

1501 and above

225

251 to 1000

1001 to 1500

1501 and above

Source: (Slum Rehabiliation Authority, 2012)

Commercial and industrial activities have a strong base in Dharavi spread over varied economic sectors. It is like a market environment that includes from manufacturing to trading of goods and services. DRP has proposed to promote the commercial activities of leather goods, food products or garments by providing a shopping mall or complexes to carry out the businesses. The proposal has to cater to the businesses in terms of equal access and adequate circulation space by providing wider roads. The modern concept of shopping malls has been thought over. All the ground floors and first

floors would be used for providing a number of commercial units which will also accommodate R+C tenements. (Dharavi Redevelopment Project, 2016) All the eligible commercial or industrial slum structures are proposed to be rehabilitated within Dharavi by making allotment of commercial area in redeveloped building in a telescopic manner i.e. by allotting 20.90 m2 carpet area free of cost. As the existing area increases, the allotment of industrial area will go on reducing by 10%, 20% and 30%. (Dharavi Redevelopment Project, 2016) /Eligibility Criteria DRP proposes to cater to both residential and commercial establishments in Dharavi. However, the research is focusses only on informal industries of Dharavi, hence, the Development Control Regulations (hereafter, DCRs) for commercial and industrial uses only are studied For rehabilitating the residents and manufacturers of Dharavi, the government has decided certain eligibility criteria on the basis of which they would be considered for free houses or commercial spaces/shops. /The existing area under commercial, office or any economic activity shall be eligible for free relocation only on the basis of official documents such as license under the Shops and Establishment Act, Electricity bills, Photo pass etc (Slum Rehabiliation Authority, 2012). /The cut-off date for rehabilitation of any commercial or economic activity is 1st January 1995. This means that all those owners/manufacturers having license or photo pass on or before 1st January 1995 would be getting built up area for commercial or economic establishments free of cost (Slum Rehabiliation Authority, 2012). /Only the ground floor structures would be considered for free built up area. Manufacturing units on the first floor are not eligible to avail the facility of free relocation (Slum Rehabiliation Authority, 2012).

/Proposed Land Use of Dharavi To accommodate the existing industrial and commercial units of Dharavi like pottery, leather, recycling and textiles, DRP/SRA in their proposed DP of 2034, has proposed four industrial hubs of 10,500 m2 each. For leather industries, they have given a proposal of a shopping mall and a Leather and Textile Hub. Out of these two units, the shopping mall has been proposed to cater to the retail shops selling leather goods on the Sion-Bandra Link Road and an Industrial area called Leather and Textile Hub for the manufacturing units of the slums. However, only a limited area, i.e. 20.90 sq.m would be provided free of cost only to the eligible manufacturers. At present in Dharavi, 66% of the land is occupied in production activities (Mumbai Dharavi - Scenerios for Development, 2009), where 41

as in the proposed plan, only 0.44% of the DNA is provided for industries i.e. only 1.05 ha. Table 5.2 shows the area of the proposed segregation of DNA. Table 5.2: Segregation of Proposed Area in DNA Category

Area (Ha)

Gross Area

Percent

240.37

100

Roads

38.6

16.06

Excluded Properties

50.6

21.05

Non Buildable

4.64

1.93

31.09

12.94

Public Amenities

2.39

Industrial

1.05

0.44

Social Amenities

13.99

5.82

Purely Rehab, Renewal and Resale

98.01

40.76

Open Spaces

Source: (Dharavi Redevelopment Project, 2016) The Fig. 5.8 below shows the location of four industrial hubs in each sector of DNA. However, if only 10,500m2 is allocated for each hub and only 20.90m2 would be provided to each industrial unit, then only 125 units would be re-accommodated in each unit. This means that a lot of industries will have to leave the area. Please find the calculation in Appendix 2. Figure 5.8: Proposed Land Use of DNA

Condition of the Leather Industries For meeting the eligibility criteria to get a manufacturing unit for free, it was important to see whether the informal units are registered with the government, what kind of licenses do they have, which floor have they occupied to run their industry and how long they have been into this business. This section of Chapter 5 covers whether the leather industries are able to conform to the existing policies and regulations set by the government or not.

/Licensing The manufacturing units of Dharavi, though informal, yet have license for running their business. All the units surveyed had â&#x20AC;&#x2DC;Shops and Establishmentsâ&#x20AC;&#x2122; License, which is the license provided to any citizen who wishes to open new shop or a commercial establishment wants to commence its business within the jurisdiction of Government of Maharashtra. Very few units also have other licenses like trade license, VAT and National Small Industries Corporation (hereafter, NSIC). However, due to small scale production, majority of the units fail to avail the benefits of registering or licensing. Fig. 5.9 is the map showing the units with licenses. Figure 5.9: Number of Licenses

The map above shows the industries with only one license, only two licenses or industries having three or more licenses. 61% (Fig 5.10) of the

Figure 5.10: Percentage of Number of Licenses

manufacturing units have only one license which is Shops and Establishments License.

61%

18%

21%

Unfortunately, these licences would not be of much help to them until and unless they fit into the eligibility criteria for free accommodation i.e. license/proof dated before 1st January 1995 and the unit be located on the ground floor. These licenses act as a proof of legality to run their business. The person who has this licenses, cannot be evicted from Dharavi. However, the date of issue of these licenses should be prior to 1st January 1995, which is the cut-off date decided by the GoM. Following mentioned are the requirements for obtaining a license under MCGM: i)

Trade License /Proof of possession a) Rent receipt /Proof of authenticity of Premises: (Any One) -A. Premises in declared slum on state Government / MHADA / MCGM / Private Land Prior to 01-01-1995 a) Photo-pass for commercial user OR b) Proof of existence for commercial user (Any One) - Electricity Bill - Shop & Establishment Registration Certificate - Holders of any License - Any Tax Receipt /Proof of Fire Safety measures (depends on the business) /License, if any a) Bombay Shops & establishment b) License u/s 394 of the Mumbai Municipal Corporation Act, 1888, if any c) Permit u/s 390 of the Mumbai Municipal Corporation Act, 1888

(How to get a Trade License?, 2014) ii)

Shops and Establishments Act License /The name of the employer and the manager, if any; /the postal address of the establishment /the name, if any, of the establishment /the category of the establishment, i.e. whether it is a shop, commercial establishment

(Department of Labour, Government of Maharashtra, 2016) The requirements of the license are not much high and in fact, the license is easy to obtain. But the problem lies with the date. Many of the manufacturers fail to have a license prior to the cut-off date. The major reason behind it is that due to being illegal, they do not have a permanent place in Dharavi, 44

and hence, they have to keep on shifting their business. Shifting to new place again means new licenses and thus, the license of a previous date gets cancelled and ultimately, they fail to have a license prior to the cut-off date. /Age of the Business It is not recently that people of Dharavi have started their business. Leather industries in Dharavi were established as early as 1800s. However, due to their illegal status, these manufacturers face a lot of problem due to shifting their manufacturing unit. One major problem is that, at the time of relocation, these manufacturers have to have a proof of their

Figure 5.11: Percentage of the years in Business

unit dated before 1 January 1995. There are a good number of manufacturers who are into

36%

leather goods manufacturing since years. But due their

36% 5%

23%

legal status issue, they have to shift their unit to a new hutment. This does not allow them to have a proof of establishment before the eligible date. In the map above, the dark blue colour represents those units which are more than 22 years old and meet the eligibility criteria which are very meagre in number. Figure 5.12: Age of the business Map

/Floor occupied by the manufacturing unit The hutments in Dharavi are not only single storeyed but are double or sometimes even triple storeyed huts. It is important to note that on which floor the manufacturing is taken place. This is because, at the time of re-accommodating the people of Dharavi, the structures

Figure 5.13: Percentage Share of Floor Occupied by the Unit Ground Floor 48%

only on the ground floor would be considered for free accommodation. The floors above are considered illegally without permission. And thus, even when they have licenses to run the industry, they would not be considered for relocation. The map

1st Floor 52%

below spatially shows the industries on the first floor. 52% of the industries are straightaway ineligible for relocation.

Figure 5.14: Floor Occupied by the Unit

Conclusion How many will be re-accommodated? The foregoing chapter clarifies that not many industries will be re-accommodated in the proposed plan of DNA. This is majorly because of two reasons mentioned below: i) They do not fit into the eligibility criteria ii) The total area proposed for industries which is 1.05 ha is too less to accommodate all the home-based industries of Dharavi. Out of the total 46 units surveyed, only 8 units, that means only 17% of the leather units will be reaccommodated in the Leather and Industrial Hub. Rest 83% of the manufacturers will have to shut down their business at least from Dharavi. These 17% of the industries are those which are located on the ground floor and are working there since more than 22 years. Though, the MCGM takes care of the industrial units in Dharavi Notified Area [DNA], most of the units fail to meet the eligibility criteria.

Major hindrance in eligibility for re-allocation are: The major problem for the eligibility of these industries for an area free of cost is due to their informal and illegal status. These informal industries and their conditions are so volatile that they have to keep on shifting their unit from one place to another. This leads to three major problems: /Even after being in the business for more than 25 years, they fail to get a license for that due to shifting of the business /Due to the lack of eligible license, these people do not fit for reallocation /Shifting the business to the 1st floor again, makes them ineligible for the reallocation The informal manufacturers will ultimately remain in the vicious cycle Figure 5.15: Vicious Cyle

However, these manufacturers and workers are so indifferent to the proposed government strategies, that they think that they can take back work at home. They do not mind shifting again to a new location. They are content with what they have now and indifferent to what they will have in future. They are aware of what government is doing and are ready to accept that. But they do not understand that not all of them will be treated equally. Also, the government provides for the physical space for the manufacturers but do not provide for their working conditions.

What could be done in the future? The existing eligibility criteria being quite stringent, eliminates majority of the industries to get a unit free of cost. Thus, this criteria should be amended to ensure that if not all, at least majority of the manufacturers have their unit in Dharavi itself in the future. The strange criteria that eliminates the units located on the first floor, could be annulled. There are few manufacturers, who are into the leather manufacturing business since years, yet they will have to leave Dharavi at the time of reallocation. If the government has not questioned them since so many years, evicting them now would be unethical and unfair. Hence, the units those who are working for more than 22 years irrespective on which floor they are operating, must be eligible for a unit free of cost. Also, associations like LIGMA and LIDCOM, which are not working up to the mark, should work a little more towards creating awareness about their benefits thereby encouraging more workers to be their member.

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APPENDICES

List of Figures

Figure 2.1: Conceptualization of Informality ......................................................................................... 5 Figure 2.2: Vicious Cycle of Informal Industries ................................................................................... 8 Figure 3.1: Production Units in Dharavi ............................................................................................... 17 Figure 3.2: Existing Land Use of DNA ................................................................................................ 20 Figure 3.3: Land Ownership Map of Dharavi ....................................................................................... 22 Figure 3.4: Sectoral Division of DNA .................................................................................................. 23 Figure 3.5: Land Use of Sector V ......................................................................................................... 24 Figure 3.6: Land Use Map .................................................................................................................... 25 Figure 3.7: Land Use Share .................................................................................................................. 26 Figure 3.8: Types of Industries ............................................................................................................. 26 Figure 3.9: Share of Industries .............................................................................................................. 27 Figure 5.1: Plan and Elevation of a Typical Manufacturing Unit in Dharavi ....................................... 36 Figure 5.2: Leather Unit from Inside .................................................................................................... 36 Figure 5.3: Scale of Operation .............................................................................................................. 37 Figure 5.4: Share of Export and Domestic Sales .................................................................................. 38 Figure 5.5: Production Chain ................................................................................................................ 38 Figure 5.6: Share of Number of Employees ......................................................................................... 39 Figure 5.7: Number of Workers Employed .......................................................................................... 39 Figure 5.8: Proposed Land Use of DNA ............................................................................................... 42 Figure 5.9: Number of Licenses............................................................................................................ 43 Figure 5.10: Percentage of Number of Licenses ................................................................................... 44 Figure 5.11: Percentage of the years in Business.................................................................................. 45 Figure 5.12: Age of the business Map .................................................................................................. 45 Figure 5.13: Percentage Share of Floor Occupied by the Unit ............................................................. 46 Figure 5.14: Floor Occupied by the Unit .............................................................................................. 46 Figure 5.15: Vicious Cyle ..................................................................................................................... 47

List of Tables

Table 3.1: Land Ownership of DNA ..................................................................................................... 21 Table 3.2: Details of Sector V of DNA ................................................................................................. 24 Table 4.1: Data and its Source .............................................................................................................. 30 Table 5.1: Area provided to Industries in Redevelopment ................................................................... 40 Table 5.2: Segregation of Proposed Area in DNA................................................................................ 42

List of Abbreviations

MCGM

Municipal Corporation of Greater Mumbai

SRA

Slum Rehabilitation Authority

BMC

Brihanmumbai Municipal Corporation

MHADA

Maharashtra Housing and Development Authority

DRP

Dharavi Redevelopment Project

LIGMA

Leather Goods Manufacturing Association

ILO

International Labour Organization

GoM

Government of Maharashtra

Government Resolution

DNA

Dharavi Notified Area

DCR

Development Control Regulations

SPA

Special Planning Authority

UDD

Urban Development Department

BKC

Bandra Kurla Complex

MMRDA

Mumbai Metropolitan Region Development Authority

LIDCOM

Leather Industries Development Corporation of India

Appendix 1 Questionnaire for Field Survey

Appendix 2 Calculation of total number of units to be accommodated after redevelopment:

Total Area under Industries Industrial Area for Leather Area to be allocated to each unit

10,500 m2 2,625 m2 (approx.) 20.90 m2

Total number of units that can be allocated

2,625/20.90 = 125 units

References

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Slum Rehabilitation Authority . (2017). About Slum in Dharavi. Retrieved from SRA website: http://www.sra.gov.in/pgeDRPInfo.aspx Srivastava, M. E. (2013, August 1). When Tokyo was a Slum. Retrieved from The Rockefeller Foundation's Informal City Dialogues: https://nextcity.org/informalcity/entry/when-tokyowas-a-slum UN-HABITAT. (2003). The Challenge of Slums. London: Earthscan Publications Ltd. Weeks, J. (1975). Policies for Expanding Employment in the Informal Urban Sector of Developing Economies. International Labour Review, 2-3. Wikipedia. (2017, April 4). Dharavi. Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Dharavi Yardley, J. (2011). Dharavi: Self-created special economic zone for the poor. Retrieved from Deccan Herald: http://www.deccanherald.com/content/216254/dharavi-self-created-specialeconomic.html