Dharavi redevelopment project at standstill yet again

04 Apr 2019 CW Staff

The Dharavi redevelopment project has finally taken off after a delay of 14 years. Unfortunately, the ambitious project has yet again stumbled upon another hurdle. The winning bidder of Dharavi redevelopment project, Dubai-based Seclink Group, has reportedly threatened to go to the court over delays in project allocation.

Things were going well for the Rs 260-billion project after the Maharashtra Government had declared Dubai-based Seclink Group as the winning bidder, of which Adani group was the runner-up for the bidding.

The winner was announced. However, weeks later the state government did not award the contract to the winning Seclink Group. Rattled by the delay, the Dubai-based group has alleged that the government is deliberately delaying awarding the project, just to put pressure on the group and to favour the competing Adani Group.

The company is reportedly planning to move the court as the Letter of Award (LOA) for Dharavi redevelopment project, which has been delayed without assigning reasons when they have acknowledged that Seclink has complied with technical and financial closure.

Reports suggest that the state government wants the company to collaborate with Indian companies as the project is too complex and this litigation would further delay the process and confirms that they delays are due to technical reasons.

The Dharavi redevelopment project is set to be a joint venture between the state government and private developers. While the winning bidder will set up an SPV with 80 per cent equity, the government will hold 20 per cent equity. The project had received only two bids; one from Adani and another from Seclink Group.

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