Adani Group Gets Formal Nod From Maharashtra Govt For Dharavi Redevelopment Project

Adani Properties, a subsidiary of the Adani Group, in November last year secured the winning bid for the project offering an investment of Rs 5,069 crore for the redevelopment of the 259-hectare area.

The Maharashtra Government on Friday formally awarded the Dharavi Redevelopment project to one of the Adani Group of companies, reported PTI. The project is expected to be one of the largest redevelopment initiatives in the country. Adani Properties, a subsidiary of the Adani Group, in November last year secured the winning bid for the project offering an investment of Rs 5,069 crore for the redevelopment of the 259-hectare slum area.

Located near the Bandra Kurla Complex, the Dharavi redevelopment project holds immense potential and is estimated to generate a revenue of Rs 20,000 crore, as per the report. 

According to the government resolution released by the Housing Development Department of Maharashtra on Friday, as per the report, the state cabinet approved the bidding outcome on December 22, 2022, leading to the awarding of rights to Adani Properties. As part of the project, a special-purpose vehicle will be formed, with Adani Properties as the lead partner.

The entire project aims to rehabilitate 6.5 lakh (650,000) slum dwellers residing in an area spanning over 2.5 square kilometers, with a total timeline of seven years, the report said. Adding that the winning bidder, Adani Properties, will have the opportunity to generate substantial revenue by selling residential and commercial spaces in central Mumbai.

The Dharavi Redevelopment project has faced delays and uncertainties over the years. In October last year, a pre-bid meeting was attended by eight bidders, including entities from South Korea and the UAE. Ultimately, three bidders submitted their bids for the project, namely Adani Realty, DLF, and Naman Group. The government had set a minimum requirement of a consolidated net worth of Rs 20,000 crore to select the winning bid.

The responsibility of the winning bidder includes rehabilitation, renewal, and the development of amenities and infrastructure components. Adani Group's realty arm has already executed or is in the process of completing projects in Mumbai, including one in Ghatkopar and another in Byculla.

Reacting to the development, Congress general secretary Jairam Ramesh attacked Prime Minister Narendra Modi alleging that BJP state governments have been reduced to ATM machines for his cronies. In a tweet on Saturday, Jairam Ramesh said "Devendra Fadnavis’ last act before handing over the housing department on Friday was to formally approve the Adani Group’s shady takeover of the Rs 5,069 crore Dharavi redevelopment project, which involves 600 acres of prime Mumbai land. It had originally been awarded to a different bidder."

"After the original tender was cancelled due to a dispute, the Shinde-Fadnavis government performed amazing acrobatics to change the tender conditions to ensure that PM Modi’s closest friend was the only feasible winner. This included raising the minimum net worth needed to win the bid from Rs 10,000 cr to Rs 20,000 cr to exclude the previous winner and to allow payment in installments that eased the path for the cash-strapped Adani Group," Congress general secretary added.