Contrary to expectations that several developers are backing out owing to poor market conditions, at least 14 of the 19 have confirmed participation at the presentations, sources added. “Entry prices in Dharavi are still very low, and sale prices are expected to match those in adjoining Bandra-Kurla Complex, where prices are good despite the slump,” said one real estate developer.

Already, the government has tackled bidders’ reservations on some of the preconditions that involve raising credit immediately. For example, officials are looking at reducing the bank guarantees and upfront payments to be made by selected builders. The minimum premium bidders must quote has been fixed at Rs 450 per sq ft of built-up area. That translates into a few hundred crores per sector to be channeled into government coffers, considerably lower than the earlier expected total premium of several thousand crores.

The Dharavi Redevelopment Project aims to rehouse approximately 57,000 slum families in free homes, to be built by investing real estate developers who can exploit the special FSI of 4 for additional commercial development.