The government of Maharashtra has floated fresh global tenders for the much-delayed redevelopment of Asia’s biggest slum Dharavi spread over 600 acres of prime land in the heart of the country’s commercial capital Mumbai.
The government is looking at developing this project through a joint entity wherein the selected lead partner is expected to hold 80% equity, which is Rs 400 crore and the state government will hold 20% with Rs 100 crore equity capital.
On Friday, Maharashtra’s Deputy Chief Minister Devendra Fadnavis had announced that the government has already completed the process of granting approvals to this ambitious project and the tendering process required to commence the redevelopment work will be done in the next three months.
The Slum Rehabilitation Authority will award the contract to the bidder quoting the highest amount over and above the stipulated minimum investment of Rs 1,600 crore that the lead partner of this special purpose vehicle is ready to bring in.
“Bidding Company/Lead Member of the Consortium shall have a minimum consolidated net worth of Rs 20,000 crore as per the latest balance sheet and such balance sheet shall not be earlier than March 31, 2022,” said the notification issued by the state government’s housing department.
In case of a consortium, the technical member of the consortium is expected to have a minimum networth of Rs 2,000 crore not earlier than March 31, 2022.
The bidder or the technical member of the bidding consortium is expected to have total experience in the development of real estate projects of not less than 6 million sq ft in the last seven years and for which Occupation Certificate (OC) or equivalent has already been secured.
In case of a consortium, the lead member is expected to have realty development experience of 1.4 million sq ft over the last seven years.
The pre-bidding meeting is scheduled on October 11, while the last date of submission for the bid is 29 October.
The joint entity will be responsible for construction of free housing for eligible slum dwellers and occupants, including amenities and infrastructure. The project is expected to be completed within seven years from the date of issuance of commencement certificate for its first phase.
On Thursday, the government announced a floor space index (FSI) of 4 for the redevelopment along with several concessions in the form of a premium paid by the developer, inspection charges, goods and service tax etc.
