Three companies bid for Rs 20,000-crore facelift to Dharavi

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, on November 15 said that it has received three bids for the rehabilitation and construction work.

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.

SVR Srinivas, CEO of the Dharavi Redevelopment Project, said, "We have got three bids for the Dharavi rehabilitation project. November 15 was the last date for submission of bids."

According to officials, the bids are expected to be opened on November 16 after which they will be scrutinised based on technical and financial eligibility.

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

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Mehul R Thakkar

Special Correspondent|Moneycontrol

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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.

Also read: Dharavi redevelopment & rehabilitation: Companies want project duration increased

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. Located in Central Mumbai, Dharavi is close to the BKC commercial hub.