Moneycontrol
you are here: HomeNewsBusiness
Jun 19, 2017 07:49 PM IST | Source: Moneycontrol.com

Dharavi redevelopment bidding to resume in 2-3 months, say sources

It is learnt that NBCC (India), a blue-chip Government of India Navratna Enterprise under the Ministry of Urban Development, will be bidding for phase one of the project, estimated around Rs 25,000 crore.

The Maharashtra government is planning to revive the bidding process for the much-delayed redevelopment plan of Dharavi, Asia’s largest slum located in the heart of Mumbai.

Sources familiar with the development told Moneycontrol that the bidding process will start in two to three months’ time.

This will be the fifth time the government will be calling for bids from developers. The Dharavi redevelopment project was first mooted in 2003 by the then Congress-Nationalist Congress Party government, but has failed to get beyond the drawing board.

In January last year, sixteen prominent developers had been short listed for the project, but none of them put in final bids.

It is learnt that NBCC (India), a blue-chip Government of India Navratna Enterprise under the Ministry of Urban Development, will be bidding for phase one of the project, estimated around Rs 25,000 crore.

Sources said the Maharashtra government is keen to work with a public sector firm for the project as this would minimise allegations of corruption and favouritism.

Sources said Maharashtra Chief Minister Devendra Fadnavis and senior officials of NBCC had met in the first week of June in Mumbai for preliminary discussions.

NBCC has worked on the redevelopment of government colonies in Delhi and is currently auctioning commercial spaces in Delhi.

During the bidding process in January 2016, Oberoi Realty, BG Shrike Construction Technology, Omkar Realtors and Kalpataru Realty were among the firms that had bid. However, none of these companies submitted their final bids.

Real estate experts say private developers are wary of bidding because they fear height restrictions on the buildings due to proximity to the airport. As a result they will not be able to use the entire FSI of 4 which they usually get in a cluster development project. Also, there were disputes over the number of families eligible for free flats, and also resistance from those who felt they would get less area in the new homes.

“Builders did not submit final bids as it called for hefty upfront investments, and also because of the political nature of the project,” said Pankaj Kapoor, Managing Director of Liases and Foras.
Sections
Follow us on
Available On