Dharavi residents to intensify protest as govt plans fresh bids for redevelopment – ET RealEstate

MUMBAI: Dharavi residents have decided to intensify their agitation following the state government’s plan to invite fresh bids for the redevelopment of the Asia’s largest slum. The core team of the Dharavi Redevelopment Committee, a federation of 52 associations of residents, has already taken a decision to approach the court against the government’s stand, its President Raju Korde said.

“We are yet to receive an official communication from the government, but if the state is rethinking about its decision, then we will intensify our agitation. We will be holding another meeting on September 3 with rest of the members to decide our next course of action,” he said.

Last year, former chief minister Devendra Fadnavis had sought state advocate general’s opinion on whether to go for retendering after the government purchased the 45 acre land parcel at Matunga which was to be included in the project.

The opinion was sought after the Dharavi Redevelopment Authority, the special purpose vehicle appointed to implement the project had issued a letter of intent to Dubai-based Seclink Technologies Corporation, which was the highest bidder quoting around Rs 7,500 crore, while the second bid from Adani was lower at Rs 4,529 crore.

The AG had recommended inviting fresh bids for the project, which has already seen a delay of 16 years.

According to reports, the government has accepted the recommendations of the Advocate General and is planning to invite fresh bids for the project.

“We are unable to understand why the opinion (of AG) was sought when the land parcel in question was very much a part of the bid document. While bidding, we knew that the bidder will have to bear the cost of land acquisition, while the deal was to be sealed by the state and the railway authority. That is the reason why we had submitted a higher bid,” Seclink Group chairman and MD Nilang Shah said.

The land in question was not just a part of the bid document but had a mention in the state GR and was also discussed in the pre-bid meetings, he said.

The government had spent Rs 800 crore in buying the land parcel and had sought to recover the amount from the bidder as the deal materialised after the bidder was finalised.

“Moreover, the letter of intent was given to us, since we were the highest bidder, only after the land parcel was acquired by the government. If everything was going as per the procedure, how can the deal affect the sanctity of the project,” Shah asked.

He further said the tender is dynamic (evolving and not static) and therefore the lame excuse of the authority citing its unilateral action to obtain the railway land cannot be termed as parameter change and cancel the Dharavi redevelopment impacting lives of millions of people residing there.

“On one hand the Centre is inviting foreign investments in India and on the other hand if such bids are cancelled for reasons other than legal grounds then we are afraid that FDI will not come to the country,” Shah added.

He further said that the company, which is backed by the royal family of the UAE, has already achieved financial closure for the Rs 28,000 crore project and if it falls apart, Seclink will face a loss of over Rs 3,000 crore.

“If the government goes ahead with the cancellation of the bid, then we would have no option but to take legal recourse,” Shah noted.

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Mumbai: L&T bows out of Naigaum’s BDD chawls redevelopment project – ET RealEstate

MUMBAI: Construction firm Larsen & Toubro that had bagged the contracts to redevelop Naigaum and Worli BDD chawls has decided to withdraw from the Naigaum project.

“The government failed to fulfil its commitment of moving out the tenants and handing over the land to the company for redevelopment. Hence, the company has sought to withdraw from the project,” said a state government official. An L&T spokesperson declined to comment.

In 2017, L&T had bagged the Naigaum project in Dadar and the one at Worli a year later.

The Naigaum project was estimated to cost Rs 2,400 crore and was to be completed within seven years in three phases. With no movement on the ground and escalating project cost, the construction firm thought it best to pull out, said the official.

The then BJP-Shiv Sena government had promised 500-square-foot homes to each eligible tenant. The project announcement caused discord within several families residing in these tenements. There was opposition to the survey of tenants as family members who had moved out of these tiny 10-by-20-sq-ft tenements protested about their names not being included in the eligible list. Though Mhada had allotted them transit accommodation, residents were reluctant to move out as the government had failed to sign agreements assuring them of 500-sq-ft tenements each.

When it was launched amid much fanfare, the BDD chawls redevelopment project was touted as a game-changer that would not only change the face of Naigaum and Worli but provide residents of the chawls with bigger, elegant and very comfortable houses. Talk about the project gained further momentum after a’model flat’ was constructed, again amid much fanfare. But it is clear the project has proved to be anon-starter like the Dharavi slum project because the government has not done the real substantive work that goes into making such big projects successful. A more methodical and serious approach could still revive it, though.TimesView

L&T had constructed a sample flat at the site so residents would be encouraged to allow the redevelopment. In the first phase, 10 chawls comprising 800 tenements were to be redeveloped.The Naigaum plot is spread over 13.4 acres and the gross construction area was estimated at 6.7 lakh sq metres or 165 acres.

Mhada had tentatively planned to build four sale buildings with 60 floors each at Naigaum. The authority had also proposed a 20-storey commercial structures, besides 20 buildings with 19 to 23 floors to house the existing tenants of the Naigaum chawls.

The BDD chawls redevelopment was first proposed in 2009 but it has failed to take off. It meets the same fate as the ambitious Dharavi redevelopment project that has been hanging fire for nearly two decades.

There are four clusters of BDD chawls in Mumbai, at Naigaum, N M Joshi Marg, Worli and Sewri. The Naigaum and Worli projects were bagged by L&T while the Tata group had bagged the N M Joshi project.

Worli is the largest cluster. Sewri is the smallest. It is on Mumbai Port Trust land. Both the state government and Mhada had written to the Centre seeking permission to carry out redevelopment of the chawls.

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Dharavi residents plan to oppose fresh tenders for redevelopment project – ET RealEstate

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Dharavi’s residents have decided to oppose tooth and nail any plan by the Maharashtra government to cancel the current tender or reinvite bids for the long-pending redevelopment of Asia’s largest slum.

Dharavi Redevelopment Committee (DRC), a federation of 52 associations of residents, has requested Chief Minister Uddhav Thackeray to expedite the redevelopment process that’s been in limbo for over 16 years.

It has highlighted the emergency to take the plan ahead in the context of the recent spread of Covid-19 in the heart of India’s financial capital.

“We have already waited for nearly two decades and do not wish to wait anymore after what we have been through because of Covid-19 pandemic. If the tendering process has already been completed, why cancel and delay it further? We will oppose the plan to float fresh tenders,” Rajendra Korde, president of DRC, told ET.

According to the committee, the government is planning to cancel the tender of Dharavi Redevelopment Project, which has already been completed, on the basis of the opinion of the advocate general raising the issue of railways land that will be added to the entire development plan.

“It is understood that the government intends to invite new tenders by dividing Dharavi in sectors. The chaos and confusion regarding this project has been going on like this for the last 16.5 years and it should be stopped immediately,” the committee said in its letter.

The DRC also suggested that the railways land be excluded from the project if that is proving to be an impediment to the tender process and that the work start immediately.

After almost a decade and a half of deliberations and three attempts to redevelop Dharavi, the Maharashtra government had invited global tenders to start the process, this time projecting it as a single project to build a new business district and township.

Jitendra Awhad, Maharashtra’s housing minister, had recently urged the CM to take steps to move ahead with the redevelopment of Dharavi while highlighting the need to rehabilitate slums and develop a robust health infrastructure in these places.

Amid increasing cases of Covid-19, the World Health Organization last week praised the efforts made to contain the spread in Dharavi, one of the world’s most congested slum clusters. The fast spread of the disease here had earlier proved to be a major challenge for the state government.

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