Financial bids: Dubai-based Seclink Group frontrunner in Dharavi redevelopment

The project has been in the pipeline since 2004 but it has not seen the light of the day for want of a developer. The project is set to be a joint venture between the state government and private developers. On November 23, 2018, DRA floated a tender for setting up SPV with the state government. After three extension of tenders, only two bidders responded.

A senior official from DRA said that on January 15, a technical bid for Special Purpose Vehicle (SPV) was opened. It got two bidders — Seclink and Adani Group. He added that the contract is supposed to be given to the firm that will bring more investment before signing the agreement.

Sources from DRA said Seclink quoted it will bring investment worth Rs 7,200 crore before signing the agreement while Adani Group quoted Rs 4,539 crore. A final call for awarding the contract will be taken by the committee headed by chief secretary D K Jain.

An officer from the DRA added that as an SPV, the government plans to extend various concessions to facilitate speedy completion of the project. While the winning bidder will set up an SPV with 80 per cent equity (Rs 400 crore), the government will hold 20 per cent equity (Rs 100 crore). “Under the SPV, free houses for eligible slum dwellers and occupants will have to be constructed. After completing the rehabilitation of the eligible tenants, SPV will be entitled to construct its sale component. SPV will get 4 FSI (Floor Space Index) for redeveloping Dharavi. SPV has to complete the rehabilitation work and other infrastructure in seven years after a work order is issued. Before signing the agreement, the lead partner should maintain a minimum base price of the quotation — Rs 3,150 crore,” the DRA official said.

Dharavi is on prime land in the heart of the financial capital. It is close to the business district- Bandra-Kurla Complex where commercial premiums are among the highest in the country. The slum is home to informal leather and pottery industries that employs over a lakh people.

With the project expected to release over five crore square feet of saleable built-up space in the market, the new plan is to utilise a bulk of it for economic activity, said sources. Apart from labelling the project as one of “vital importance”, the state cabinet on Tuesday also tweaked the economic development model.