Dharavi Redevelopment Project bidding process might be scrapped says Maharashtra Government.

By Abhay Harish Shah, Realty Quarter

Because of problems relating to the inclusion of 45 acres of railway land in the project, The State government plans to discard the bidding process for the Dharavi redevelopment project. The offers for the redevelopment of the Dharavi Slum were opened on February 18, spread across 600 acres of Mumbai and Selin Technology Corporation, a UAE company, was founded in the front. It embraced Rs 7,500crore investments in the project.

The competitor Adani Enterprises quoted Rs 4529crore. Though, the Memorandum of Understanding (MoU) was signed on 25 February between the Railways and the state government.

In this regard, the State Government decided to ask the advocate general whether railway lands represent additional advantages to the preferred bidder or not.

A senior official from Chief Minister’s office said, “Even before AG’s opinion has come various departments who are involved with Dharavi Redevelopment Project discussed to scrap it as giving railway land will make the preferred bidder more beneficial.”

Though, promoters objected to taking AG’s view and said, “In documents like the government resolution of November there was a reference to the railways at each stage, and this was also referred to in tender documents and minutes of the pre-bid conference where one of the bidders raised the issue.”

The Dharavi redevelopment project has been underway since 2004 but no takers have so far been found. The current project comprises Rs 28,500crore and under the 200 acres project, slum dwellers will be resettled, with 100 acres being used for commercial development of public amenities such as parks, schools, hospitals, and more, while 300 acres will be used for selling commercially.