Mumbai’s Dharavi is set to get a facelift! The largest slum settlement in Asia will see redevelopment and major infrastructure boost. The estimated cost of the mega project stands at a staggering Rs 26,000 crore. The redevelopment project is said to be the biggest brownfield project in India, according to Indian Express report. The project will benefit over 60,000 families in Dharavi. A Memorandum of understanding (MoU) will be signed between the Maharashtra government, the Dharavi Redevelopment Project Authority (DRPA) and Seclink after the Dubai-based company’s bid has been accepted by the empowered committee of secretaries under Chief Secretary Dinesh Kumar Jain.
Dharavi is known as Asia’s largest slum. It is located in a sprawling land piece of 2.40 sq km in the heart of the financial capital of India and at a stone s throw from India s richest business district Bandra Kurla Complex. The project Dharavi revamp was first conceptualised in 2004. Since then it has become a top agenda of every political party in the state and one of the key issues during polls.
Here is all you need to know about Dharavi makeover project:
The Dharavi redevelopment project will be done in a manner that it becomes economically viable. The state government is mulling transforming the area into a hub for commercial and business activity. The project is estimated to yield around 5 crore sq ft of space which can be utilised for the commercial purpose.
Seclink is a Dubai-based infrastructure company which has a backing of “royal family office of the Middle East”. It has undertaken several infrastructures and housing projects in Singapore and Dubai.
Seclink emerged as the highest bidder with an investment worth Rs 7,200 crore. The other high-profile bidder was the Adani Group. The Adani group had quoted Rs 4,539 crore, according to the report. Additional Chief Secretary (Housing) Sanjay Kumar, who is part of the empowered committee, said the official announcement will be made soon in this regard.
Learning from the failed attempts in the past, the state government headed by Chief Minister Devendra Fadnavis is forming a special purpose vehicle (SPV) for the project. The SPV will involve the Dubai-based company and the DRPA. The state government is also providing sops, concessions and GST exemptions on materials except for raw cement and stamp duty.
After formation of the SPV, the Dubai-based firm will need to bring in an equity of Rs 400 crore. The state government on its part will invest around Rs 100 crore.