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Tender for Dharavi redevelopment project may be scrapped

Wednesday, 20 Nov 2019
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The tender for the multi-crore Dharavi redevelopment project is likely to be scrapped. A committee of secretaries has suggested re-tendering the redevelopment contract with modifications to seek the lead partner for the project.

The tender published on 28 November 2018 allowed up to eight consortium members to bid for the project. However, the proposed new tender, which is awaiting approval from the state government, caps the number of consortium members to not more than two.

It also requires the lead member of the consortium to be registered in India and also the holder of at least 51 percent equity of the consortium.

The Maharashtra Cabinet had cleared a new makeover plan for Dharavi in October 2018. Following this, the Dharavi Redevelopment Project Authority (DRPA) had opened the technical bids.

The estimated cost of the redevelopment project is Rs 26,000 crore, which is spread over 2.4 sq km and home to over 60,000 families.

In February 2019, Seclink Group, a Dubai-based infrastructure company, emerged as the frontrunner for the redevelopment project. Apart from the company, only other bid was received from the Adani Group.

While Seclink Group quoted a total investment worth Rs 7,200 crore for the project, the Adani Group quoted Rs 4,539 crore. On 8 March 2019, Seclink Group got the Letter of Intimation for the project.

Other modifications to the tender include that the bidder must have an experience of 10 years in real estate, which was seven years earlier. Also it is required that members of the consortium and the lead partner should have finished minimum of 5,000 rehabilitation units. Earlier, the bidder and the consortium had to have proof of funds worth Rs 10,000 crore, but as per the new modification, the amount has been reduced to Rs 3,500 crore.


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