Mumbai: The state government has extended deadline to submit Dharavi Redevelopment Project's bid by a fortnight.
Already about eight to nine companies from across the globe have shown interest in the project, but how many of them will actually participate through submission of tender will be known only on Monday, had the deadline not been extended.
In the recent past, during the initial rounds of meetings between government officials and developers, certain clarifications and requests have been made such as extending the overall Dharavi Redevelopment Project’s completion timeline from seven years to 12.
“On the request of interested players, we have decided to extend the tender submission deadline by a fortnight,” said S V R Srinivas, Chief Executive Officer, Dharavi Redevelopment Project.
In October, the Maharashtra government and Rail Land Development Authority (RLDA) had inked an agreement to hand over 45 acres of land for this ambitious project. The agreement was signed after the Union and state governments arrived at a conclusion that profits from the project will be shared with the Centre.
As per the mutually agreed solution, RLDA will get 0.21% of the profits. In case of an eventuality of the redevelopment project getting stuck, the state government will owe Rs3,800 crore to the Union ministry.
The project will be awarded to the consortium quoting the highest amount of investment, above the stipulated Rs1,600 crore. The developer is also supposed to acquire 24.62 hectares of private land, except for the already developed areas within sectors one to four inside Dharavi.
In the special purpose vehicle that will be formed for the project, private players will hold 80% equity, and the balance 20% will go to the state government.
In lieu of the free housing component for around 60,000 families and 13,000 commercial units, the private company will be permitted a Floor Space Index of 4 among other concessions like usage of extra FSI anywhere in Mumbai and refund of state GST. Each slum owner will be entitled to a minimum of 405 sqft unit of carpet area. There are about 40% ineligible slum dwellers.
In 2008 and 2016, the state government was unsuccessful in taking the project through despite finalising a Dubai-based SecLink Group.
