Wednesday, September 05, 2007

The case for Dharavi redevelopment

It will be interesting to see what would be the pricing in this area. I'm guessing 7k-10k a sq/ft seems to be about right. These guys will construct small apartments and consumers will lap it up. Connectivity to Dharavi is extremely good from all sides and its proximity to Bandra Kurla complex will be a big plus.

The Hindu businessline reports

Sobha-Puravankara consortium bids for Dharavi project

Maharashtra Govt receives EoIs from 26 consortia

Anjana Chandramouly

Bangalore, Sept. 5 The Bangalore-based Sobha Developers and Puravankara Projects have, as a consortium, bid for the Rs 9,250-crore Dharavi Redevelopment Project in Mumbai.

Confirming this Mr J.C. Sharma, Managing Director, Sobha Developers, said that the consortium (a special purpose vehicle) “will qualify on financial and net worth parameters for all the five sectors. It’s an opportunity we would like to explore.”
EoIs

Mr Mukesh Mehta, architect and adviser to the Government of Maharashtra, said the Government has received expressions of interest from 26 consortia — with three partners each. Of the 78 companies that have shown interest, 25 are international ones; only one consortium is completely Indian, he added. The project is expected to take 5-7 years for completion.

According to the Government’s plan, Dharavi will be divided into five sectors, which will be developed by private developers. The Government will award only one sector per developer.

Each sector will have infrastructure for health, income generation, and knowledge, environment and socio-cultural development, Mr Mehta said.

The project will earn the Government a premium of over Rs 3,000 crore-4,000 crore, besides infrastructure such as roads, water supply, hospitals, schools, etc. that will be developed by the private developers.

The Government is likely to share 70 per cent of the premium for the redevelopment, Mr Mehta said. This will be the first eco-housing criteria suburb of India, he said. He added that they were closely working with the USAID for the project.

Currently, the slum is spread across 535 acres. Of this, 20 per cent of land is private, out of which six per cent is encroached space. “We will take over the encroached land only,” Mr Mehta said.

1 comment:

shailesh said...

With such a large tract of supply getting added, I think it has potential to bring Real Estate market down significantly. Just the beginning of such a project would change the psychology.