Mumbai: The Dharavi Redevelopment Project (DRP) responsible to undertake the slum dwellers rehabilitation project has finally closed the bidding process after giving two extensions, said S V R Srinivas, principal secretary of DRP on Thursday. The government had floated a global tender for the project on November 23, calling upon interested bidders to become a lead partner so to construct the integrated planned township in Dharavi.
For the project, 240 hectares has been notified for the redevelopment project. The last date for the submission of this bid was December 28, but extended it till January 8. Thereafter, as only two companies showed interest – Adani Group and Dubai-based Seclink Group, a second extension until January 15 was given.
“As per the government resolution for Dharavi redevelopment project it was decided extension will be given only twice and then the tender will be closed. Now we have locked the bidding process. We have begun scrutiny of the two selected companies who have shown interest in the project and within a few days the appropriate one will be selected,” said SVR Srinivas, principal secretary, DRP.
As per the norms of the project, the selected company has to form a special purpose vehicle (SPV) with 80 per cent equity (Rs 400 crore) and the government will hold 20 per cent equity (Rs 100 crore). Srinivas remarked, “The idea of SPV has been adopted as the government will work in partnership with the company which will be selected. That means while undertaking the project, on day-to-day basis whatever the activities will be carried out in that the government will be involved and people can trust.
Secondly, we are hopeful and positive that the project will succeed.” The SPV has to construct free houses for the eligible slum dwellers, which includes amenities and other infrastructure facilities as per the bid agreement. In lieu of it, they 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. Besides this, considering it as the state’s ambitious project the Dharavi redevelopment has been given a Floor Space Index (FSI) of four to the developers as an incentive.
In the past as the project, did not receive bidders even after calling tenders several times, the Chief Minister Fadnavis in the cabinet meeting held last year approved the merger of all 12 sub-clusters to facilitate the redevelopment work including cluster five which was with the Maharashtra Housing and Area Development Authority (MHADA).
When asked to Srinivas that the MHADA wants back the cluster five work, he replied, “The project of cluster five was with them(MHADA) for a long time and how many buildings have they built? The project will take off as per the cabinet decision only now.” Reportedly, the MHADA which was handed over the cluster five redevelopment project in 2013 had only managed to construct one building till date of 18 storeyed and 353 slum-dwellers had been allotted houses of 300 square feet carpet area in it.