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Eight companies from India, Middle East and S. Korea evince interest in Dharavi redevelopment project

The Maharashtra government had floated a global tender for the redevelopment. The project is estimated to cost more than Rs 20,000 crore.

Representational image.

Representational image.

Eight companies have shown interest in the redevelopment of Mumbai's Dharavi, one of the largest slum clusters in Asia, it is learnt. They include companies from India, the Middle East and South Korea.

The Maharashtra government on October 1 floated a global tender for the redevelopment of Dharavi. The project is estimated to cost more than Rs 20,000 crore.

The Slum Rehabilitation Authority (SRA), under whose banner international tenders for the appointment of a lead partner for Dharavi redevelopment were floated, conducted a pre-bid meeting in which the eight companies participated. However, the authorities did not disclose the names of these firms.

SVR Srinivas, chief executive officer for Dharavi redevelopment projects, told Moneycontrol, "There was a good response to the tenders for the construction of the Dharavi slum cluster. Around eight companies from India, the Middle East and South Korea participated in the pre-bid meeting. We cannot reveal the names right now, but these are big companies."

Srinivas added, "The companies have raised certain queries and we will now issue a clarification. There won't be any major changes after issuing the clarification. The last date for the submission of tender as of now is October 31."

The Maharashtra government aims to complete the bidding process by the end of the year and the winner will have seven years to complete the work, including the rehabilitation of more than 56,000 families. Each of the eligible slum dwellers will get a house with a carpet area of 405 sqft.

The state government has announced a floor space index (FSI) of four for the redevelopment along with concessions on premium paid by the developer, inspection charges, goods and services tax (GST), etc. The government has decided to include land acquired from the Railways in the project and offered additional concessions to prospective developers.

There are also 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 included Adani Group and Dubai's Sec-Link Group.

Dharavi, spread over 240 acres that are notified for rehabilitation, is a hub of unorganised and small-scale industry that manufactures 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 commercial hub as well as tony south Mumbai.

Mehul R Thakkar
Mehul R Thakkar
first published: Oct 11, 2022 08:41 pm