After a delay of 14 years, things have finally started moving fast for the Rs 26,000 crore Dharavi redevelopment project, as the government is likely to award the contract for the project this week to the winning bidder. The fight is between the Dubai-based Seclink Group and the Adani Group.
On Wednesday, financial bids for the Dharavi redevelopment project were opened and Seclink was the highest bidder, followed by the Adani Group.
The Dharavi redevelopment project has been in the pipeline since 2004. Despite many changes in governments at both the state and Centre, the project has not seen much progress. With protests by residents and competitive politics involved, large developers had largely stayed away from the project. However, it has gained some momentum over the last 16-18 months.
The project is set to be a joint venture between the state government and private developers. 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).
According to official, the contract is expected to go to the developer who will bring more investment before signing the agreement. While Adani Group quoted Rs 4,539 crore, Seclink is known to have quoted bringing in Rs 7,200 crore in investment before signing the agreement.
Officials also say that there are other parameters to be considered. “The investment is one criterion, but there are other parameters as well to be considered. There is lot of displacement involved. Things have to be seen meticulously. If the committee is not satisfied, it may consider extending date again,” a senior official from DRA told this publication.
A final call on awarding the contract, and which firm will win the project, will be taken by the committee headed by chief secretary D K Jain, which is expected to decide anytime this week.
“The committee headed by chief secretay DK Jain is likely to meet this week to decide the final winner of the contract of the project. So by this week there will be clarity over how this project is going to take shape,” DRA officials said.
Only two bids received
On November 23, 2018, the Dharavi Redevelopment Authority floated a tender for setting up SPV with the state government, but received only two bids from Adani and Seclinlk even after the government extended the date of tender thrice, according to sources in the state government