Adani Group’s real estate development company, Adani Properties, on 14 July 2023 received the final approval from the government of Maharashtra to undertake the redevelopment of Dharavi, which is the largest slum in Asia, located in the heart of Mumbai. The project covers a vast area of 600 acres of prime land. In November 2022, Adani Properties emerged as the highest bidder and secured the rights for the slum’s redevelopment. The state government has now instructed all relevant departments to issue orders pertaining to their respective responsibilities within a week, as stated in the government resolution notification approving the developer’s selection.
SVR Srinivas, the CEO of the Dharavi Redevelopment Project, stated that they have received the government resolution and hope to get the letter of award soon. Adani Properties had submitted a bid of 75,069 crore rupees for the project, surpassing the government’s minimum investment requirement of 71,600 crore rupees for the lead partner of the special purpose vehicle (SPV).
The state government initiated a fresh global tendering process for the long-delayed project in October 2022. Alongside Adani Properties, major real estate company DLF and Mumbai-based Shree Naman Developers also participated in the bidding process. A pre-bid meeting was attended by eight entities, including international players. After the tendering process, the state government’s committee of secretaries deliberated and approved the proposal in a meeting held on December 15, 2022.
The redevelopment of Dharavi is expected to bring about significant changes not only for Mumbai but also for the political landscape of the region. Experts believe that this project will provide a significant opportunity for slum-dwellers and facilitate the transformation of Mumbai city in collaboration with urban planners, human rights activists, and the state government. The government has already announced various concessions, such as a floor space index (FSI) of 4, as well as exemptions related to inspection charges, Goods and Service Tax, and other premiums paid by the developer.
The project will be executed through a joint entity, where Adani Properties will hold 80 percent equity and the state government will hold the remaining 20 percent equity capital.
The state government’s housing department, in an October 2022 notification, specified the minimum consolidated net worth requirements for bidding companies and technical members of a consortium. Additionally, in 2018, the government approved the plan to redevelop Dharavi as a single project and proceeded with a single global tender. The area’s strategic location and proximity to the Bandra-Kurla Complex positioned it as a residential cluster and a new business district for Mumbai.
In summary, the Maharashtra government has officially awarded the Dharavi Redevelopment Project to Adani Properties, a company under the Adani Group. The project aims to rebuild Dharavi and create residential, commercial, and retail spaces. The winning bidder, Adani Properties, will be responsible for the rehabilitation, renewal, amenities, and infrastructure aspects of the project. The redevelopment will span a timeline of seven years and aims to provide improved living conditions for the 650,000 slum dwellers residing in Dharavi.