Mumbai: Railway hands over plot for Dharavi redevelopment

Mumbai: Maharashtra government and Rail Land Development Authority inked an agreement on Tuesday to hand over 45-acre land for Dharavi Redevelopment Project.

“I am very happy to share that definitive agreement for handing over of railway land for Dharavi Redevelopment Project got signed between Ministry of Railways’ Rail Land Development Authority and Dharavi Redevelopment Project Authority, this afternoon in New Delhi,” tweeted Deputy Chief Minister Devendra Fadnavis.

The agreement was signed on Tuesday after the state and union governments arrived at a conclusion that profits from the ambitious redevelopment project will be shared with the latter. As per the mutually agreed solution, RLDA will get 0.21 per cent of the profits.

In case of an eventuality of the redevelopment project getting stuck, the state government will owe Rs 3,800 crore to the union government’s ministry.

So far, the Maharashtra government has paid Rs 800 crore to RLDA. With the definitive agreement getting inked on Tuesday, another tranche of Rs 200 crore will have to be paid within the next six months.

On October 1, the state government invited global bids to develop the prime land in the middle of Mumbai. So far, eight private players have shown interest by approaching the authorities to enquire and purchase bid documents. October 31 is the D-day to submit their competitive bids.

The project will be awarded to the consortium quoting the highest amount of investment, above the stipulated Rs 1,600 crore. The developer is also supposed to acquire 24.62 hectares of private land, except for the already developed areas within sectors one to four inside Dharavi.