Adani Realty, DLF, Naman Group in race for Dharavi redevelopment project in Mumbai

Dharavi is considered one of Asia's largest sum (Representative image)

Gurugram-based DLF, Naman Group and Adani Realty have individually submitted their bids for the redevelopment project in Dharavi, one of Asia's largest slum, confired SVR Srinivas, the chief executive officer of Dharavi Redevelopment Board on November 16.

On October 1, 2022, the Maharashtra authority had floated a tender for the redevelopment work. The pre-bid meeting was scheduled on October 11, and the last date for submission of bids was set for October 31. This was later extended to November 15.

"The next step is to scrutinise technical bids and open financial bids, thereafter," Srinivas told Moneycontrol.

According to officials, financial bids of only those companies will be opened who will qualify in technical bidding.

Overall, eight companies from India, the United Arab Emirates (UAE), and South Korea had shown interest in the redevelopment of Dharavi in the pre-bid meeting conducted on October 11. However, three have shown interest by submission of bids.

The authority aims to complete the bidding process by the end of December 2022, and appoint the lead partner by January 2023.

Earlier, two companies had shown interest in the project, but the tender was scrapped in October 2020 by the previous state government owing to technical issues. The two companies were Adani Group and Dubai’s Sec-Link Group.

The Maharashtra government aims to complete the bidding process for the project by the end of the year and the winner will have seven years to complete the work and rehabilitate more than 56,000 families. Each of the eligible slum dwellers will get a house with a carpet area of 405 sq ft, and the project will get a Floor Space Index (FSI) of 4. FSI is the ratio that decides the height to which a building can be constructed.

In an exclusive interview with Moneycontrol on November 1, Srinivas had said Dharavi has the potential to become the next Bandra Kurla Complex (BKC) after redevelopment.

More than one crore sq ft of construction is expected to come up in Dharavi, the central suburb in Mumbai, in the next 17 years, of which 70-80 lakh sq ft will be constructed for rehabilitation, and the rest put on sale in the open market.

The government will also provide exemptions under development control regulations, and permission to invest or use transferable development rights (TDR) without indexation. The government will also refund the state GST paid by the special purpose vehicle (SPV) for 15 years, and by the industrial and commercial company once certificate of occupancy is given to the eligible slum dwellers.

Dharavi is a hub of unorganised and small-scale industries, which manufacture medicines, leather, footwear, and clothes. With an estimated population of one million, it is one of the most densely populated slums in the world.