In tune with the redevelopment promise mentioned in the BJP's election manifesto, the state government will appoint a consultant within three months to suggest appropriate option for redevelopment, a PWD official has said.
The colony, spread over 100-acres of prime land is located close to Western Express Highway and Bandra-Kurla Complex.
The official said the government was yet to take a call on issues like whom to award the project, the actual area to be under construction and the floor space index (FSI) to be provided.
"We have two to three options on how to develop the colony. One option is to give the project to a private builder on certain conditions while another one is to let PWD develop it," the official said on condition of anonymity.
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The decision to redevelop the colony was taken during the stint of then chief minister Ashok Chavan in 2009 when the Congress-led Democratic Front (DF) government was in power.
After the tender process, private players D B Realty, Akruti Constructions and Sanjay Kakade won the contract for redevelopment. Kakade had even made a down payment of Rs 145 crore to government for this work.
Meanwhile, Vinod Goenka and Shahid Balwa of DB Realty were arrested in the 2G scam case in 2011, which resulted in stalling of the redevelopment work.
State Housing Minister Prakash Mehta said his department wanted to provide new accommodation to government servants and that redevelopment of the colony is on its agenda.