Dharavi bidding process falls flat for the fourth time

MUMBAI: The fate of Dharavi, India’s largest slum, faces uncertainty because no developer has bid for the Rs 22,000 crore project for the fourth consecutive time

MUMBAI: The fate of Dharavi, India’s largest slum, faces uncertainty because no developer has bid for the Rs 22,000 crore project for the fourth consecutive time since the tender was issued, despite the fact that the Dharavi Redevelopment Authority (DRA) eased many of its stringent conditions to attract developers after it failed to do so on three previous occasions.

HT Image

According to Paras Gundecha, chairman and managing director, Gundecha Group, the current real estate slowdown has made builders cautious. “Builders are not in a position to take part in such a massive project involving such a huge cost in the current market,” he said. “In addition, there is still no clarity on the whole Dharavi redevelopment plan. Eligibility is still a major issue.”

The first global tender which was floated in 2009 attracted 101 developers, of which 19 were shortlisted. However, over time, because of the government’s indecisiveness, a majority pulled out and finally the state government cancelled it. Dharavi residents’ associations have asked the state government to come out with a revised scheme. “The residents need to be taken into confidence and a detailed plan needs to be worked out. People should be consulted in every step,” said Babaurao Mane, president, Dharavi Bachao Andolan. He blamed the current fiasco for the high handedness, when the residents were kept in dark about their future.