Dharavi redevelopment: Maharashtra authority extends bid submission date till November 15 on request from interested companies

Representational image.

The Slum Rehabilitation Authority (SRA) in Maharashtra, tasked with the redevelopment of Dharavi, one of Asia’s largest slum clusters, at a cost of over Rs 20,000 crore, announced extension of the last date for submission of bids from October 31 to November 15. The extension was announced on requests from interested companies.

The Maharashtra authority had floated a tender for Dharavi redevelopment on October 1, 2022. The pre-bid meeting was scheduled on October 11, and the last date of submission of bids was October 31. The extension of date to November 15 was announced on October 31.

Eight companies, including those from the UAE, South Korea and India, have shown interest in the redevelopment of Dharavi in the pre-bid meeting conducted on October 11.

When asked for the reason for extension of bids, SVR Srinivas, Chief Executive Officer for Dharavi redevelopment projects, told Moneycontrol, “The reason for extension of last date of submission of bids till November 15, (is the) request from bidders for extension.”

Further, the authority clarified that approximately 3.5 to four lakh residents residing on mezzanine floors are ineligible, after interested companies had sought clarification for the same. Earlier, in the tender document, the authority had mentioned the figure at approximately seven lakhs.

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The announcement said, “However, the actual numbers may vary when the detailed household survey is carried out. They have to be accommodated, preferably in a 10-km radius from Dharavi Notified Area, under the Pradhan Mantri Awas Yojana or under the Affordable Rental Housing Scheme, as described in this tender document.”

Earlier, on October 20, Moneycontrol had reported that companies interested in the rehabilitation and redevelopment of Dharavi, had sought more time from the Maharashtra government for completion of the over Rs 20,000 crore project.  The companies have sought 10-12 years for rehabilitation, setting up of infrastructure, etc, instead of the seven years granted by the Maharashtra government authority.

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.

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 after obtaining a certificate of occupancy.

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 are Adani Group and Dubai’s Sec-Link Group.

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. Located in Central Mumbai, Dharavi is close to the Bandra Kurla Complex (BKC) commercial hub.