MHADA opts for competitive bids for Sector 5

The Maharashtra Housing and Area Development Authority (Mhada) will opt for competitive bids to redevelop Sector 5 at Dharavi instead of going ahead with its official contractor. Ketaki Ghoge reports.

The Maharashtra Housing and Area Development Authority (Mhada) will opt for competitive bids to redevelop Sector 5 at Dharavi instead of going ahead with its official contractor.

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Shirke Constructions is the sole official contractor for Mhada. However, there has been criticism over this monopoly in the past. “This will bring in more transparency and there will be no room for criticism if we sub contract the work through competitive bidding instead of nominating a contractor,” said minister of state for housing, Sachin Ahir, who confirmed the development.

The housing agency, which has been given a go ahead to develop the sector, wants to ensure that the quality of construction of rehabilitated tenements is on par with the best.

Sources said chief minister Prithviraj Chavan was keen to showcase Mhada’s capabilities of carrying out the redevelopment by ensuring good quality construction and earning sufficient revenue for the state in the process.

The model, if successful, is likely to get replicated in various other redevelopment projects. A designated officer in Mhada will undertake the work of finalising the eligibility of tenants in Sector 5 instead of the civic body.

Mhada has also decided to rehabilitate the tenants before the slums are demolished.

The housing agency is currently preparing a road map for the redevelopment. It is still undecided on how to exploit the remaining vacant land after all the existing eligible tenants are housed.

Ahir said the government was deliberating on whether the land should be auctioned off or the housing agency should construct affordable houses under its Low Income Group, Middle Income Group and High Income Group schemes. The cost of the land in Dharavi, closest to Bandra-Kurla Complex, is around Rs 22,000 crore.