On July 13th, Maharashtra granted approval to the Adani Group for the redevelopment of Dharavi, which is one of Asia’s largest slum clusters. This move comes after a delay of over two decades, and it aims to transform the second-largest slum cluster in Asia.
The Maharashtra Housing Department got final permission for the hiring of Adani Properties for the Dharavi rehabilitation project in a government proposal (GR) released on July 13th. This approval has been received after about 8 months. That too after making Adani Realty the highest bidder for the ambitious redevelopment project.
SVR Srinivas, chief executive of the Dharavi rehabilitation plan, told BQ Prime that the state has issued a government proposal to hand over the project to Adani. The award letter will be issued soon, he added.
Adani Group had emerged as the highest bidder, with the real estate arm of the Rs 1,600-crore Adani Group winning the project in November after a bid of Rs 5,069 crore. While DLF Ltd offered Rs 2,025 crore, Naman Group did not qualify in the technical bid.
The project, estimated to cost around Rs 23,000 crore, will be one of the largest redevelopments undertaken by a government agency in India through a global tender. This would require the relocation of existing tenants.
The Maharashtra government has designated the entire area as a “developable area” and appointed a special planning authority. The lead partner selected through global bidding will have to form a special-purpose vehicle with 80% equity or Rs 400 crore and the Maharashtra government will hold 20% equity or Rs 100 crore.
The special purpose vehicle will construct free housing for eligible slum dwellers, along with facilities and basic infrastructure, as per the terms and conditions mentioned in the special purpose vehicle bid documents. Dharavi, a sprawling cluster of slums spread over 240 hectares in the core central Mumbai area, has a population of 8 lacks and more than 13,000 small businesses.
The bids of the three companies (Adani, DLF, and Namand Group) and their bid amounts were first opened on November 16th, followed by scrutiny based on technical and financial eligibility.