MUMBAI: Prospective bidders for the Rs 22,000 crore Dharavi Redevelopment Project (DRP), have indicated to the state that it must allow Transfer of Development Rights (TDR) for the project to be viable.
The state government had invited global bids for the project, and while 18 developers had downloaded the bid document not a single bid was submitted, forcing the state to extend the submission deadline to May 5.
Last month housing secretary Shreekant Singh held a meeting with the bidders and representatives from the Maharashtra Chamber of Housing Industry (MCHI) and National Real Estate Development Council (NAREDCO) to understand the concerns of developers.
Sources said the developers have contested the Dharavi Redevelopment Authority’s claim that the entire floor space index (FSI) of 4 can be consumed through the slum redevelopment and sale component in Dharavi. They submitted their calculations to the government to show that the 4 FSI cannot be entirely consumed on the slum land and so have sought a guarantee from the government that the unutilised FSI will be allowed to be used elsewhere in the city.
The BMC’s draft Development Plan which is currently being revised will be released towards the month-end. The previous draft allowed TDR to be utilized in the island city subject to indexing. This is expected to be continued in the revised DP. Currently TDR is allowed to be utilized only to the north of the plot. So it is limited only to the suburbs. Most of the TDR generated in the last two decades has been used in the Bandra-Andheri belt. So, if the government allows TDR for DRP, it will be a bonanza for successful bidders.
“We have asked the urban development department to compare the calculations submitted by the developers and that which has been done by the Dharavi Redevelopment authority. Based on its findings we shall take a decision on TDR,” he said.
The government is not hopeful of receiving bids on May 5 and is likely to extend the period for bid submission.
Credits ET Realty