In three months of coming to power the Eknath Shinde-Devendra Fadnavis government has floated the tender for redevelopment of Dharavi.
In the year 2020 the MVA government had cancelled the tender that was floated by Devendra Fadnavis when he was the chief minister.
However after assuming the seat of power, Fadnavis started holding meetings removing hurdles and within a week after the announcement the tenders for Dharavi’s redevelopment has been floated.
Only on Friday had Fadnavis at an event said the tenders for Dharavi Redevelopment shall be floated soon and on Saturday the tenders are already out. This is the fourth global tender floated for the redevelopment of Dharavi.
The tender copy stated that, “The State Government of Maharashtra has decided to redevelop DHARAVI as a Special Project, the largest slum in Mumbai, as an integrated planned township. Government has notified the lands admeasuring about 240 Ha as the Dharavi Notified Area and appointed Slum Rehabilitation Authority, as a Special Planning Authority.”
Dharavi is situated close to Bandra-Kurla Complex, the financial hub of Mumbai. It is the centre point of Mumbai and well connected with all kinds of public transport modes.
Railway stations at Sion, Mahim, Chunabhatti, GTB Nagar and King’s Circle are adjacent to Dharavi. Further, MMRCL is developing Dharavi Metro station (Mumbai Metro Line – 3) which has connectivity to South Mumbai, BKC and International Airport.
Additionally, connectivity of the area will get further strengthened by plans of MMRDA to develop one more road linkage to Banda Worli Sea Link near Dharavi, Further Mumbai Trans-Harbour link under construction connecting central Mumbai with international Airport is very close to Dharavi.
As a Special Project and vital Public Purpose Project, Government of Maharashtra has endeavored to provide various concessions for the speedy completion of this Project and integrated development of the area as a growth centre.
Selected Lead Partner has to form Special Purpose Vehicle with 80% equity (Rs. 400 crore) and Government of Maharashtra will hold 20% equity (Rs. 100 crore). SPV will have to construct free housing for the eligible slum dwellers and occupants, including amenities and infrastructure as per the terms and
conditions mentioned in the Bid document. In-lieu of it, the SPV Company will be entitled to construct free sale area to sell in the market.
The proposed completion period of the construction of rehab, renewal, amenities and infrastructure is 7 years from the date of Commencement Certificate for the first phase of the Project.
The bidders have to submit their Bids in a single-stage, two e-envelopes -tendering process.
The Project will be awarded to the qualified Bidder, quoting the highest amount, over and above the minimum stipulated ₹1,600 crore investment, that the Lead Partner of the SPV Company is ready to bring in the SPV Company as per the terms and conditions of the tender documents.
Apart from equity of Rs 400 crore, any investment required for the project shall be brought by the Lead Partner in the form of Compulsorily Convertible Securities such as Compulsorily Convertible Debentures and/or Compulsorily Convertible Preference Shares.
The tender copy reads, “The Authority invites offers from experienced and qualified bidders from India and abroad for integrated redevelopment of Dharavi through International Competitive Bidding.”
Important dates:
The bid documents can be downloaded from the website: https://mahatenders.gov.in between 01/10/2022 to 31/10/2022.
Pre-bid meeting is 11/10/2022. The last date for submission of the Bid is 31/10/2022.
One of the biggest contention of the railway land issue has been resolved, and it will be part of the tender.
Dharavi Redevelopment has been in process for a pretty long time. For more than a decade, the residents of one of the biggest slums in the World have been awaiting that their future shall change.
While not much has happened on ground, the government has already spent crores on the process of Dharavi Redevelopment.
Uddhav Thackeray led MVA government’s cabinet in 2020 decided to cancel the tender for Dharavi Redevelopment that was floated by Devendra Fadnavis led government in 2018. Post which the MVA had even claimed that it shall float fresh tenders, but nothing much moved in that direction.
The tender floated by Devendra Fadnavis government in 2019 was the third time the tenders were floated for Dharavi Redevelopment. The first two times the tender was floated when Congress-NCP were in power.
In August 2020, the Committee of Secretaries (CoS) met to take a call on the Dharavi Redevelopment tender. The committee suggested cancelling the tender, and they proposed the same to the state government which finally took a call on it.
The CoS had relied its suggestion on the advice by the Advocate General (AG), who advised for fresh tenders. After floating the tender and receiving bids, the state government acquired 46 acres of land for Rs 800 crore from the Railway. Post acquiring this land and making it a part of the Redevelopment Project, the advice from the AG was sought, who advised for fresh tenders.
Global tenders were floated in November 2018, for the Dharavi Redeveloper Project.
Dharavi is spread over 240 hectare of land and is centrally located. It is close to Bandra Kurla Complex, the financial hub of Mumbai.
In January 2019, Dharavi Redevelopment Project (DRP) had received two tenders of which Seclink group was the frontrunner for the redevelopment of Dharavi which, according to reports, had quoted Rs 7,200 crore. The total project cost was estimated to be above Rs 27,000 crore.
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