The deadline to submit tenders for the redevelopment of Dharavi ends today. Already about eight to nine companies from across the globe have shown interest in the project, but how many of them will actually participate through the submission of tender will be known only on Tuesday. If there is any further extension of the deadline, it will be announced only on Tuesday.
During the initial rounds of meetings between government officials and developers, certain clarifications and requests have been made such as extending the overall project's completion deadline as, given the size of the project, seven years is insufficient. According to the interested players, at least 12 years are required.
Agreement between Maharashtra govt and RLDA
In October, the Maharashtra government and Rail Land Development Authority (RLDA) had inked an agreement to hand over 45 acres of land for this ambitious project. The agreement was signed after the Union and State Governments arrived at a conclusion that profits from the project will be shared with the Centre.
As per the mutually agreed solution, RLDA will get 0.21% of the profits. In case of an eventuality of the redevelopment project getting stuck, the State Government will owe Rs 3,800 crore to the Union ministry. 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 one to four inside Dharavi.
Incentives for private players
In the special purpose vehicle that will be formed for the project, private players will hold 80% equity, and the balance 20% will go to the State Government. 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 (FSI) of 4 among other concessions like usage of extra FSIanywhere in Mumbai and refund of state GST.
Each eligible slum owner will be entitled to a minimum of 405 sq ft unit of carpet area. There are about 40% ineligible slum dwellers. In 2008 and 2016, the State Government was unsuccessful in taking the project through despite finalising a Dubai-based SecLink Group.
