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A week after deciding to invite fresh bids for the Dharavi Redevelopment project, the Eknath Shinde-led Maharashtra government on 1 October floated a global tender, which is estimated to cost over ₹20,000 crore.
The state government is mulling to finish the bidding process by 2022-end. The winning bidder, apart from redevelopment, will have to work on the the rehabilitation of more than 56,000 families. The project is estimated to be completed in 7 years.
"We have floated global bids, and are now expecting to complete the bidding process within the next two to three months. However, it will be premature to comment on the date of work commencement as currently the timeline for completion of the bidding process is set," Moneycontrol quoted chief executive officer for Dharavi redevelopment projects SVR Srinivas as saying.
Considered to be one of the most densely populated areas of the world, the rehabilitation of Dharavi has been in the works for over 20 years. It is a prized asset of India's financial capital as the land prices are some of the highest in the world.
To identify eligible slum dwellers, the winning bidder will form a special purpose vehicle. For this, assistance would be provided by the authorities, Srinivas added.
"The Authority invites bidders to submit their bids in a single-stage, two envelopes e-tendering process. The project will be awarded to the qualified bidder quoting the highest amount, over and above the minimum stipulated investment of ₹1,600 crore, that the lead partner of the SPV company is ready to bring in the SPV company as per the terms and conditions of the tender documents," the financial news website quoted the bid document.
"Apart from equity of ₹400 crore, any investment required for the project shall be brought by the lead partner in the form of compulsorily convertible securities such as compulsorily convertible debentures and/or compulsorily preference shares," it added.
As per the details, the pre-bid meeting will be held on 11 October and the last date for submission of the bid is 31 October, 2022.
Earlier on September 21, the Maharashtra cabinet decided to invite fresh bids for the Dharavi Redevelopment project and offer additional benefits for the project.
The redevelopment of Dharavi, one of the biggest slums in Asia, throws open over 600 acres of prime land, but the project has met with hurdles over the last two decades.
With agency inputs.