State wants partner for Dharavi project

Mumbai: The state has floated tenders to appoint a partner who will have 80 per cent stake in the Dharavi Redevelopment Project (DRP). The move comes after the recent formation of the SPV (special purpose vehicle), where the government and a private firm will undertake the project. Despite floating global tenders for the project previously, it did not find any takers.

With the Slum Rehabilitation Authority (SRA) appointed as Special Planning Authority, the redevelopment will take place across 240 hectares of land in Dharavi. Initially, a Dubai firm had evinced interest in the redevelopment project but the plan did not move ahead.

A senior official from the DRP department said, “We have floated tenders for a lead partner; the process may take around three months’ time.”

The redevelopment will take seven years from the signing of the development agreement. The minimum amount quoted for the tender is expected to be `3,150 crore.

The tender document issued by the government says, “As a special project, the government of Maharashtra has endeavoured to provide various concessions for the speedy completion of this project, and integrated development of the area as a growth centre. The selected lead partner will have to form a SPV with 80 per cent equity (`400 crore) and the government of Maharashtra will hold 20 per cent equity (`100 crore).”

The special purpose vehicle will be entitled to construct a free sale area to sell in the market. The floor space index (FSI) for the project is four.

The redevelopment has been decided as an integrated planned township with increased connectivity due to metro 3 Dharavi station and MMRDA’s road linkage to the Bandra-Worli Sea link near Dharavi.