After years of dilly-dallying over the redevelopment of the slums in Dharavi, the largest in Asia, the chief executive officer for Dharavi Redevelopment Project, (DRP) has floated a global tender inviting foreign bidders to redevelop four sectors of Dharavi. The tender was floated on January 30, and the bids will be opened on April 7 at the MHADA headquarters in Kalanagar. The estimated cost of the project is Rs 21,936 crore. The move came after CM Devendra Fadnavis gave the project a go-ahead during a meeting with housing ministry officials earlier this month.

File pic of Dharavi
File pic of Dharavi

Nirmal Kumar Deshmukh, CEO of DRP said that the tender, released on January 30, can be viewed on the website of the state government

Deshmukh said, “We have floated the tenders, we are expecting international companies to come in too and we are hopeful that Dharavi will be redeveloped now.”

Time bound
A senior officer from DRP claimed that after awarding the tender to the successful bidders, the project has to be completed within seven years and for that the DRP will take some money as performance guarantee from the developer. “The Earnest Money Deposit (EMD) is the five per cent of the total estimated cost in every sector of Dharavi.

We have calculated an estimated cost for every sector, which includes the money that will be spent on rehabilitating the slum dwellers, providing amenities, and even maintenance. Within seven years of the tender being awarded, the developer will have to finish the project and will also have to look after the maintenance of the building for the next five years.”

The senior officer further added, “With Foreign Direct Investment in housing being allowed, we are expecting that finances for developers wouldn’t be very hard a job. The developers will be able to get foreign finance, as well as consultant and they can have a consortium of domestic builder, foreign financier, and international consultant and bid for Dharavi.”