Integrated Planned Township: Global tenders called to form SPV for Dharavi

Mumbai: The Slum Rehabilitation Authority (SRA), has floated a global tender calling upon interested bidders to become a lead partner so to construct the integrated planned township in Dharavi. The state government demarcated 240 hectares, as Dharavi notified area, for the redevelopment project. The last date for the submission of this bid is December 28. SRA said, the selected bidder has to form a special purpose vehicle (SPV) with 80 per cent equity (Rs 400 crore) and government of Maharashtra will hold 20 per cent equity (Rs 100 crore) as decided by the state government.

According to the tender floated, the SPV has to construct free housing for the eligible slum dwellers and occupants, which includes amenities and other infrastructure as per the bid agreement. In lieu of it, the SPV will get in exchange a marketable component. The appointed SPV company is expected to complete the project within seven years from the date of signing the development agreement. The Dharavi redevelopment is an important project and the state government has given Floor Space Index (FSI) of four to the developers as an incentive.

Only those bidders who quote above Rs 3,150 crore will qualify to file the tender. They also have to raise an equity of Rs 400 crore. Recently, the Chief Minister Devendra Fadnavis approved the merger of all 12 sub-clusters to facilitate the redevelopment work. The new decision to bring Dharavi under one slum cluster was taken, apart from for Sector-5, since the Dharavi Redevelopment Project (DRP), did not receive bidders even after calling tenders several times.

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