DLF, Adani, Naman Group bid for Dharavi redevelopment project

Set for a makeover: The Dharavi Redevelopment Project has been under discussion for close to 20 years

The Maharashtra government has received bids from DLF Group, Adani Group and Naman Group for the redevelopment of Dharavi, one of the largest slum clusters in the world. Confirming the development, S.V.R. Srinivas, chief executive officer of the Dharavi Redevelopment Project and commissioner of Maharashtra Housing and Area Development Authority said, “We have received three bids, we will now do the technical scrutiny in a few days. Whoever will qualify, we will open the financial bid.”

The cost of the project is estimated to be about ₹20,000 crore. On October 1, the Maharashtra government invited global tenders, the base price of which is ₹1,600 crore.

The bidding document states, “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 special project vehicle (SPV) company is ready to bring in the SPV company as per the terms and conditions of the tender documents. 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.”

An SPV is an entity formed for a specific purpose of infrastructure and rehabilitation and has the State Government’s stake at 20%, while 80% is that of the international consortium that wins the bid for the redevelopment.