Dharavi Redevelopment Project, the world's largest slum rehabilitation programme, has drawn interest from the who's who of the developer community.
Hiranandani, K Raheja Builders, Gamon Infrastructure and Kalpataru are reported to have shown interest in the Rs 9,300-crore project, launched by the Slum Rehabilitation Authority (SRA) of the Maharashtra government.
The authority sold a dozen expression of interest (EoI) forms on day one. It expects to sell at least 100 by June 30, the last date.
One form costs Rs 1 lakh.
The big draw of the project is the high floor size index (FSI) of 4, which will allow th companies to develop more area. Mumbai, barring some places, has an FSI of 1.33. A low FSI frees up more space for infrastructure.
"We have sold 11 EoI forms so far. We expect to sell 100 forms by the last date.
Since it is a global tender, some South Asian, Israeli and West Asian firms are also talking to us," said IS Chahal, officer on special duty, SRA.
Mehta believes the form fees will not deter smaller players from bidding for the project. "Smaller players who have experience in slum rehabilitation could form joint ventures with bigger players even if they get 10 per cent stake."
The project aims to develop 14 million sq feet commercial space and 30 million sq feet residential space in the next seven years. The project area is 360 acres. The proposal is to turn the world's largest slum into an integrated township.
"We have taken the forms. If the conditions and terms work out, we will bid. Who is developing the slum is not important. The more crucial factor is that the country's financial centre be cleared of its largest slum," said Niranjan Hiranandani, MD, Hiranandani Constructions.
Dharavi Project Management Consultant Mukesh Mehta said the project would bring down the spiralling realty prices in sorrounding areas like Bandra Kurla Complex, Bandra, Sion, Khar and Santacruz.
"Dharavi is going to be a model for slum rehabilitation in India. If the government develops other slums too, housing will become affordable," said Mehta.
Property consultant Rajesh Mehta said once the area was developed, realty prices could come down in the range of Rs 12,000 to Rs 15,000 per square foot. It could bring down prices in the business district, BKC, where prices are in the range of Rs 25,000 to Rs 30,000 per sq foot.