Dharavi redevelopment update

Financial bids for the Dharavi Redevelopment Project (DRP) will be opened on July 20, the Slum Rehabilitation Authority (SRA) and Maharashtra government’s housing department decided at a meeting . The cost of the project, which got delayed by over 10 years due to several factors, escalated to Rs 15,000 crore. The project was initially estimated at Rs 9,350 crore. Despite the delay, the state government wants the SRA to go ahead with the Dharavi makeover plan before the election code of conduct comes into force for the assembly polls. The SRA had shortlisted 19 consortia in the technical bids round in December last year. After the final presentations in February, five major consortia fell out of the race leaving 14 bidders, who have submitted financial bids. Each consortium comprises three companies. The 19 consortia which initially evinced interest in taking up the project included global names apart from big infrastructure companies in India like Dubaibased Limitless, DLF, Housing Development and Infrastructure with Lehman Brothers Real Estate Partners as financial partner, Magarpatta Township Development & Construction, Mukesh Ambani’s Reliance Engineering Associates, Larsen and Toubro, Indiabulls Real Estate and Emaar MGF Land. The project seeks to rebuild the sprawling slum zone of Dharavi, spread over 263 hectares, into several multi-storeyed residential towers with modern civic amenities. The entire slum area will be divided in five sectors for redevelopment and an independent developer will be selected for each sector. A state survey has identified 57,000 slum units in Dharavi as beneficiaries of rehabilitation. The state, however, has not taken any decision about 25,000 other sub-units which exist on the mezzanine floors in the slums. The SRA rules provide for rehabilitation of only those who are residing on ground, officials said.