Ready for a makeover: Dharavi’s redevelopment project has been under discussion for almost 20 years
The Maharashtra government has received bids from DLF Group, Adani Group and Naman Group for the redevelopment of Dharavi, one of the biggest slums in the world. Confirming the development, SVR Srinivas, Managing Director of Dharavi Redevelopment Project and Commissioner of Maharashtra Housing and Area Development Authority, said, “We have received three bids, we will now proceed with the technical review in a few days. Whoever qualifies, we will open the financial offer.
The cost of the project is estimated at around ₹20,000 crore. On October 1, the government of Maharashtra launched global tenders, the base price of which is ₹1,600 crore.
The tender document states: “The authority invites bidders to submit their bids through a one-step, two-envelope electronic bidding process. The project will be awarded to the qualified bidder quoting the highest amount, above the stipulated minimum investment of ₹1,600 crore, that the lead partner of the Special Project Vehicle (SPV) company is willing to make to the SPV company according to the terms and conditions of the tender documents. Besides the ₹400 crore equity, any investment required for the project must be contributed by the lead partner in the form of mandatory convertible securities such as mandatory convertible debentures and/or mandatory preferred stock.
An SPV is an entity formed for a specific purpose of infrastructure and rehabilitation and holds the state government’s 20% stake, while 80% is that of the international consortium that wins the tender for the redevelopment .