Dharavi makeover project faces further delays over size of flats

"We understand the project will be postponed by a few months. This is the impression we got in our pre-bid conference,'' said a Mumbai-based builder.

As a result, the deadline for submission of financial bids, expected to be May 31, will have to be extended for the second time, pending the settlement of developers' queries on a range of issues.

"The Committee of Secretaries has convened a meeting on May 31 to discuss the issues raised by the bidders,'' said a senior official at Maharashtra's Slum Rehabilitation Authority.

Given that it's a politically-sensitive project, some experts tracking the makeover scheme feel it could be deferred till the general election next year, or the assembly election, which is within the six months of the general election.

"It will displace 72,000 families and businesses and have a significant impact. The timing is not right. By going ahead, they will be giving an opportunity to the Opposition," said a real estate expert.

"Given the reverses the Congress has suffered in many states, the project is all but deferred,'' added the expert. "One would be foolish to defer such a money-spinning project in an election year,'' said a political observer.

State officials maintained the project was on track. "We are in the process of answering the queries raised by the bidders and a meeting has been called by the chief secretary to finalise the government's response to the queries raised by the bidders over the weekend,'' said Housing Secretary Sitaram Kunte.