Sobha Developers has backed out of the race for redeveloping Asia’s largest slum Dharavi in Mumbai. The real estate major, which had been quick to pick up the RFQ papers for Rs 9,250-crore Dharavi development, declined to put in Eols last week.

“It’s turning out too crowded a race to our liking,” according to PNC Menon, chairman, Sobha Developers, asked why Sobha Group shied from forming a consortium like other major realty players. “And when there are too many players in a complex bid, the risks of cutthroat competition and undercuting costs are more,” Oman-based Menon told FE.

As the final picture emerges, there are as many as 78 firms, in 28 consortia garbs, to bid for the five sectors. Reliance, L&T, DLF, Dewan, Godrej, Videocon, India Bulls and Dubai-based Emaar group are some of the big-billed players, who have maintained sustained interest.

What excites realty players, apart from the slum development altruism, is that the enormous land surpluses, left after the rehabitalation, could yield coveted commercial space.

As the competition thickens, Mhada, the coordinating agency for Dharavi development, has raised the eligibility norms. One, the bidder should be experienced in 100-acre townships. Two, he should have a minimum turnover of Rs 650 crore. “Our firm amply qualifies, but the current business judgement, after seeing the numbers in the fray, is that the returns may not be worth the effort,” a spokesman of Sobha Group said.

Source: The Financial Express

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