Maharashtra’s state cabinet has decided to invite fresh bids for the redevelopment of Dharavi, one of Asia’s largest slum clusters, in Mumbai.
The state government has decided to include land acquired from the railways in the project and offer additional concessions to prospective developers.
“Approval to implement the project for redevelopment of Dharavi by retendering and giving additional concession to the project was taken in the cabinet meeting,” the Maharashtra Chief Minister’s Office (CMO) said in a post on Twitter on September 21.
In October 2020, the then Maharashtra government scrapped the earlier tender for the redevelopment project, which has been in the making for over two decades.
Dharavi, spread over 600 acres, is known to be a hub for several small-scale, unorganised industries that manufacture medicines, leather, footwear, and clothes. With an estimated population of 1 million, Dharavi is one of the most densely populated slums in the world and was badly hit due to the pandemic.
It is located in Central Mumbai in close proximity to the commercial hub of the Mumbai Bandra Kurla Complex and south Mumbai.
Last month, deputy chief minister Devendra Fadnavis took stock of the project and said redevelopment of the area will be brought on track in the coming days.
“Considering the situation arising out of the Covid disease and the overall market slowdown, the terms and conditions of the tender will be revised and approval was given to include approximately 45 acres of railway land in the project,” the CMO said in a statement.
The redevelopment project will be undertaken through a special purpose company model. It will contain terms and conditions mentioning the transfer of railway land through the Railway Land Development Authority, the CMO said.The proposed Dharavi redevelopment project was earlier pegged at about Rs 28,000 crore. Two bidders had shown interest in the project. However, the bids were scrapped due to technical reasons.