Mumbai: Dharavi Redevelopment bid deadline likely to be extended

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 submission of tender will be known only on Monday, if the deadline is not extended

Ateeq ShaikhUpdated: Sunday, October 30, 2022, 09:23 PM IST
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Representative Image | BL Soni

Mumbai: The deadline to submit tenders to redevelop Dharavi ends today (October 31).

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 submission of tender will be known only on Monday, if the deadline is not extended.

In the recent past, during the initial rounds of meetings between government officials and developers, certain clarifications and requests have been made such as extending the overall Dharavi Redevelopment Project’s completion timeline from seven years to 12 years.

“If these changes are agreed to, these alterations will have to be made and incorporated into the tender documents. In such a scenario and given the scale and size of the project, a deadline to submit the bids is likely to be extended,” said a source.

Earlier this month, 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 ambitious 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 Rs3,800 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.

In the Special Purpose Vehicle that will be formed for the project, private players will hold 80% equity, and the state government 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, refund of state GST, among others.

Each slum owner will be entitled to a minimum of 405 sq. ft. unit of carpet area. Other than the 60,000 eligible families 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.

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