MUMBAI: After nearly oneand-half decades of deliberations and three attempts to redevelop Dharavi, one of the largest slums of Asia, the government of Maharashtra has invited global tenders to kick start the process. 

The minimum stipulated bid amount for the redevelopment of the slum spread over 593 acres in the heart of India’s commercial capital has been set at Rs 3,150 crore. 

The selected lead partner is expected to form a special purpose vehicle (SPV) with its own contribution of 80% equity worth Rs 400 crore, while the government of Maharashtra will infuse Rs 100 crore to hold 20% equity in this entity. 

Apart from equity worth Rs 400 crore, any further investment needed for the project will be brought in by the lead partner in the form of compulsorily convertible instruments including debentures and preference shares. 

This SPV will be responsible to construct free housing for eligible slum dwellers and occupants including amenities and infrastructureNSE -0.62 % as per the terms stipulated by the state government, according to the public notice issued by the officer on special duty, Dharavi Redevelopment Project, that falls under the purview of the Slum Rehabilitation Authority. 

In lieu of this, the SPV will be entitled to construct free sale area to sell in the open market. The project will get floor space index (FSI) or permissible development rights of four times.