A portion of Asia's second biggest slum is up for redevelopment once again, with the Maharashtra government, through the Slum Rehabilitation Authority (SRA), floating global tenders on Saturday to rehabilitate families and commercial units in the settlement.
Some of the biggest names in India's real estate market are likely to participate in developing 240 hectares of prime land in the heart of the country's financial hub, right next to the Bandra-Kurla Complex.
Going by the conditions laid down by the state government, about three dozen Indian developers qualify, an industry expert said.
Among them are Macrotech Developers (formerly Lodha Developers), Hiranandani Group, House of Hiranandani, DLF, Godrej Properties, Adani Realty, Prestige Group, Sobha, RMZ Group, Oberoi Realty, Runwal Group and Brigade Group.
Some others who have experience in redeveloping slums and qualify on the other financial criteria are Hubtown, DB Realty and Omkar Realtors & Developers.
But most of the players in slum redevelopment are in financial distress and hence unlikely to be part of such a big project.
The eligibility criteria say the lead consortium member “shall have experience in the development of real estate projects of not less than 1.4 million square feet in the last seven years, for which Occupation Certificate has been received.”
Likewise, the technical consortium should have a total experience of 6 million square feet in the past seven years, including receipt of Occupation Certificate. They should also have consolidated net worth of Rs 20,000 crore and Rs 2,000 crore, respectively.
The project will be awarded to the consortium quoting the highest amount of investment, above the stipulated Rs 1,600 crore. The developer is also supposed to acquire 24.62 hectares of private land, except for the already developed areas within sectors 1, 2, 3 and 4 in Dharavi.
In the Special Purpose Vehicle, private players will hold 80% equity while the state government will hold the balance 20%.
In lieu of the free housing component for around 60,000 families and 13,000 commercial units, the private company will be permitted a Floor Space Index of 4 among other concessions, better charges, inspection charges, layout deposit amount, usage of extra FSI anywhere in Mumbai and refund of state GST, among other sops.
Each slum owner will be entitled to a minimum of 405 sq ft carpet area.
Other than the 60,000 eligible families, there are about 40% ineligible slumdwellers. The latter will be allowed to purchase units by paying the construction cost and price of land.
The last date for submitting bids is Oct 31, but given the complexity of the project and contract, the deadline may be extended. On Friday, the SRA had invited bids for project management consultants, with the last date for submission being Oct 20.
