Cold response: Only two bidders for Dharavi redevelopment project

The state government's ambitious project to redevelop one of Asia's largest slum Dharavi in the heart of the country's commercial capital failed to elicit a good response from developers. After two extensions, the project has managed to get only two bidders.

Regardless of a poor show, Chief Minister Devendra Fadanvis asked not to extend the dates any further. The bids will be opened today, following with the names of the bidders will be announced, confirmed officials.

The nodal agency for the project had earlier set December 28 as the last date for submission of bids for the project. Given the cold response, the deadline was extended to January 8, and then to January 15.

A senior official from Dharavi Redevelopment Project said, "We have received two bids, and won't extend the dates of submission any further. We will be opening the bids tomorrow. Only then will we come to know who the final two bidders are."

The official further added, "We followed the government resolution and going by date, we have decided to go ahead with these two bids. After scrutiny, the final call will be taken."

When asked Chief Minister Devendra Fadanvis, whether an extension will be given, he replied, "I think an extension is not needed."

Global tenders for selection of a lead partner for the redevelopment of Dharavi was floated in November. The project will be awarded to the one who will bid above the base price of Rs 3,150 crore. The base price is separate from the equity of Rs 400 crore for the Special Purpose Vehicle (SPV). The state had earlier announced that it will float an SPV for the redevelopment of Dharavi if the lead partner forms the SPV with 80 per cent equity (Rs 400 crore) while the government holds 20 per cent equity (Rs 100 crore). The last global tenders were floated in January 2016. However, there was no response to them.

The redevelopment project has been priced at above Rs 20,000 crore but, the base price for the tender remains Rs 3,150 crore.

Redevelopment of Dharavi is an important aspect for Mumbai and the state politics. Once redeveloped, the families will get a minimum 350 sqft if they are currently living in 300sqft homes.

POOR SHOW

• The bids will be opened today, following with the names of the bidders will be announced 
   
• Given the cold response, the deadline of the bid had been extended twice
   
• The project has been priced at above Rs 20,000 crore but, the base price for tender is Rs 3,150