Blow for Dharavi revamp | Mumbai news - Hindustan Times
close_game
close_game

Blow for Dharavi revamp

Hindustan Times | By, Mumbai
Apr 24, 2010 02:41 AM IST

The Dharavi revamp plan has suffered yet another setback. American firm, Pacifica Companies, recently pulled out of the project citing indefinite delays in the implementation of the plan.

The Dharavi revamp plan has suffered yet another setback. American firm, Pacifica Companies, recently pulled out of the project citing indefinite delays in the implementation of the plan.

HT Image
HT Image

The company announced that it was terminating the Memorandum of Understanding (MoU) it had signed with Neptune Developers and the Gujarat-based Sindhu Resettlement Company Limited to bid for this project. The reason — the project has failed to take off.

Hindustan Times - your fastest source for breaking news! Read now.

The move is likely to impact the future of this consortium and the project, which has been plagued by large-scale pullout of bidders.

Neptune Developers, however, said it is still in the race. “Pacifica has pulled out but we are still the bidders,” said Nayan Shah, president (operations), Neptune Developers. “Their exit will not make any difference.”

Pacifica did not respond to phone calls made to its Gujarat office.

Now with the Pacifica pullout there is a real danger of this consortium being disqualified, which leaves only six players, who will bid for five sectors of Dharavi. “This will defeat the purpose of competitive bidding and there is a danger of cartels being formed,” said an official working for the project on condition of anonymity.

The Rs 15,000-crore Dharavi project, conceived in 2004 to convert India’s largest slum into a plush township, has been facing problems from its inception.

Last year, two major hurdles put the entire plan in limbo. First, the municipal corporation’s preliminary report that found 63 per cent of Dharavi’s residents were ineligible for houses under the slum rehabilitation scheme.

Then there was another pullout by developers citing lack of direction.

SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Naresh is a Special Correspondent with Hindustan Times, Mumbai, since 2005. He covers the real estate sector, in addition to doing political reportage.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On