The Times of India 25.08.2009
Rs 5000cr redevelopment project up for grabs in Bandra
MUMBAI: Close on the heels of the Mantralaya redevelopment project, another massive redevelopment plan in the western suburbs is expected to be pushed through by the government soon. TOI has learnt through highly reliable Mantralaya sources that three builders have emerged as the frontrunners for the 100-acre project to redevelop the PWD-built quarters for state government staff in Bandra east, located around the suburban collector's office.
According to these sources, the leading contenders for this lucrative project-estimated by PWD chief engineer S B Tamsekar as worth Rs 5,000 crore-are DB Realty, Kakade Infrastructure and Akruti.
DB Realty is a company formed just a couple of years ago by Vinod Goenka of Conwood Group and Shahid Balwa of Balwas Group. This company has often been described in industry circles as among the biggest emerging real estate firms in Mumbai and surrounding areas. Kakade Infrastructure is a firm headed by Pune-based builder Sanjay Kakade, who has bagged several big government projects in the past. Akruti is a Mumbai-based construction company headed by Vimal Shah and became known mainly because its involvement in various slum rehabilitation projects in the city.
Tamsekar said the state government's cabinet committee on infrastructure headed by chief minister Ashok Chavan will soon take a decision on awarding the project. He added fewer than five firms had been "short-listed''. The fourth company on the list is Man Infrastructure. Early this year, the infrastructure committee, which includes deputy chief minister Chhagan Bhujbal, water resources minister Ajit Pawar, finance minister Dilip Walse-Patil, transport minister Surupsingh Naik and MSRDC minister Vimal Mundada, decided to trifurcate the project. This is because the committee felt no single developer could handle such a huge project. Each of the three components is worth over Rs 1,500 crore. The developer has to quote a minimum of Rs 440 crore upfront for upkeep and maintenance of the new buildings.
But like the Mantralaya redevelopment project, several builders have complained in private that the tender for the PWD redevelopment project was not widely publicised. A former office-bearer of the powerful Maharashtra Chamber of Housing Industry-which represents top builders-told TOI that the tenders were selectively given to some firms. "We were asked to meet certain politicians if we were interested in the project,'' he alleged. It is learnt that a Kandivali-based developer had written to various departments in Mantralaya, seeking information about this project. "He received no reply,'' said this builder's colleague.
The PWD colony currently has almost 5,000 flats in ground-plus-three storey buildings. It was built between 1958 and 1968. According to the plan, the successful bidders will have to redevelop the residential buildings and construct shopping complexes, gardens, schools and recreational grounds. The project also envisages construction of a super-speciality government hospital as well as an 8-lakh sq ft administrative building as large as the Mantralaya. There would also be a community hall, a club house and shopping arcade. Developers are expected to get over 20 acres to exploit and earn profits from. Situated along the Western Express Highway in close proximity to the commercial hub of BKC, it is a plot developers have for long been vying for.
According to these sources, the leading contenders for this lucrative project-estimated by PWD chief engineer S B Tamsekar as worth Rs 5,000 crore-are DB Realty, Kakade Infrastructure and Akruti.
DB Realty is a company formed just a couple of years ago by Vinod Goenka of Conwood Group and Shahid Balwa of Balwas Group. This company has often been described in industry circles as among the biggest emerging real estate firms in Mumbai and surrounding areas. Kakade Infrastructure is a firm headed by Pune-based builder Sanjay Kakade, who has bagged several big government projects in the past. Akruti is a Mumbai-based construction company headed by Vimal Shah and became known mainly because its involvement in various slum rehabilitation projects in the city.
Tamsekar said the state government's cabinet committee on infrastructure headed by chief minister Ashok Chavan will soon take a decision on awarding the project. He added fewer than five firms had been "short-listed''. The fourth company on the list is Man Infrastructure. Early this year, the infrastructure committee, which includes deputy chief minister Chhagan Bhujbal, water resources minister Ajit Pawar, finance minister Dilip Walse-Patil, transport minister Surupsingh Naik and MSRDC minister Vimal Mundada, decided to trifurcate the project. This is because the committee felt no single developer could handle such a huge project. Each of the three components is worth over Rs 1,500 crore. The developer has to quote a minimum of Rs 440 crore upfront for upkeep and maintenance of the new buildings.
But like the Mantralaya redevelopment project, several builders have complained in private that the tender for the PWD redevelopment project was not widely publicised. A former office-bearer of the powerful Maharashtra Chamber of Housing Industry-which represents top builders-told TOI that the tenders were selectively given to some firms. "We were asked to meet certain politicians if we were interested in the project,'' he alleged. It is learnt that a Kandivali-based developer had written to various departments in Mantralaya, seeking information about this project. "He received no reply,'' said this builder's colleague.
The PWD colony currently has almost 5,000 flats in ground-plus-three storey buildings. It was built between 1958 and 1968. According to the plan, the successful bidders will have to redevelop the residential buildings and construct shopping complexes, gardens, schools and recreational grounds. The project also envisages construction of a super-speciality government hospital as well as an 8-lakh sq ft administrative building as large as the Mantralaya. There would also be a community hall, a club house and shopping arcade. Developers are expected to get over 20 acres to exploit and earn profits from. Situated along the Western Express Highway in close proximity to the commercial hub of BKC, it is a plot developers have for long been vying for.