Central government plans to develop the 200-acre Dharavi area under the smart city project
The Maharashtra government has issued a notification for setting up of the special purpose vehicles (SPV) to redevelop the 200-acre Dharavi project. The state also wants to frame the criteria for inviting global tenders. As per the notification, sector –5 of MHADA in Dharavi will be also handed over to Slum Rehabilitation Authority (SRA) so that this entire will have an integrated development.
The Central government has decided to develop this mega project as a part of smart city project. “It will also give the tag of vital public project. This is the dream project for the state, centre and people of Dharavi,” said Rahul Shewale, member of Parliament from Dadar-Dharvi area. The initial investment in the project is Rs 20,000 crore, while the total worth of the 200-acre project is Rs 70,000 crore.
In Special Purpose Vehicle (SPV), the SRA will have the 20 per cent financial and voting right share while investors will hold remaining 80 per cent share in this project. The global tenders will be floated soon.
“The SRA initially will put Rs 100 crore while investor in special purpose vehicle will have to invest as mode of an equity, fund, non-transferable security deposit such as preference shares and debentures. The eligible participant in this tender process will have to show the security deposit of Rs 3150 crore to SRA. Once the agreement of redevelopment is signed with SRA, in 30 days, the investor has to deposit Rs 100 crore in the escrow account along with Rs 400 crore bank guarantee,” the notification states.
The chief secretary of the state who is also chairman of the high power committee will have the rights to make changes the entire process. “If the authority receives less than three bidders, then deadline for the submission of proposals will be extended twice. After that the bid will be opened,” it states. The BMC’s sewerage plant area and BEST depot land in Dharavi would also be handed over to the SRA under the redevelopment plan. “Once the project is ready, same size of land will again be handed over back to the BMC and BEST. Besides, SRA will also acquire the 90 acre land of railway between Matunga-and Dadar. It will be part of the Dharavi redevelopment project. Another 6.90 hectare of another railway land will be used for the construction of transit camp,” the notification states.
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“The SRA initially will put Rs 100 crore while investor in special purpose vehicle will have to invest as mode of an equity, fund, non-transferable security deposit such as preference shares and debentures. The eligible participant in this tender process will have to show the security deposit of Rs 3150 crore to SRA. Once the agreement of redevelopment is signed with SRA, in 30 days, the investor has to deposit Rs 100 crore in the escrow account along with Rs 400 crore bank guarantee,” the notification states.
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