Mumbai: The State Government has given a second extension up to January 15 to the interested bidders, who wish to undertake the Dharavi slum redevelopment project, confirmed Chief Minister Devendra Fadnavis, who himself monitoring the project. The first extension was given till January 8, since only one bidder showed interest reportedly. T
he state government floated a global tender on November 23, 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 was December 28, but extended till January8.
As per the tender condition, 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. The SPV has to construct free housing for the eligible slum dwellers and occupants, which includes amenities and other infrastructure facilities 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. Apart from this, only those bidders who quote above Rs 3,150 crore will qualify to participate in the tender process. Moreover, they also have to raise an equity of Rs 400 crore.
Considering state’s ambitious project the Daravi redevelopment project has been given a Floor Space Index (FSI) of four to the developers as an incentive. Also, CM Fadnavis in the cabinet meeting last year approved the merger of all 12 sub-clusters to facilitate the redevelopment work including cluster five which was the Maharashtra Housing and Area Development Authority (MHADA). The new decision to bring Dharavi under one slum cluster was taken, since the Dharavi Redevelopment Project, did not receive bidders even after calling tenders several times.
