Mumbai, Nov. 15: Dharavi Redevelopment Project has made a crucial headway with the Maharashtra government's Slum Rehabilitation Authority receiving three bids from real estate players to take up the ambitious task of transforming a big chunk of central Mumbai.
A substantial portion of Asia's second-biggest slum area will undergo real estate and infrastructure upgrades in the years to come. "As part of the initial steps towards the objective of transforming Mumbai, we have received quotations from three interest players. Later this month, we will scrutinise their proposals and award the work," said S V R Srinivas, Chief Executive Officer, Dharavi Redevelopment Project.
In the last one and a half months, since the plan was floated for proposals, a total of eight companies had shown interest in taking up the project.
A total of 240 hectares of prime land right next to the existing commercial business district of Bandra Kurla Complex will undergo the change. It involves the rehabilitation of families and commercial units in Dharavi.
The three private players, who are in the fray, have an experience in the development of real estate projects of not less than 1.4 million (14 lakh) sq. ft. in the last seven years, for which an Occupation Certificate has been received. Similarly, the technical partner has a total experience of 6 million (60 lakh) sq. ft. in the last seven years, including receipt of the Occupation Certificate. The tender criteria mentioned that they should have a 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 one to four inside Dharavi.
In the Special Purpose Vehicle, 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. The latter will be offered to purchase units by paying the construction cost and price of the land.
