The Maharashtra Government has formally awarded the 259-hectare Dharavi Redevelopment project to an Adani Group firm. The project, which reportedly has a revenue potential of Rs 20,000 crore, involves rebuilding the Dharavi slum sprawl in central Mumbai, located near the BKC business district. It was won by Adani Properties in November last year through a competitive bidding which also saw realty major DLF and Naman Developers competing.
A government resolution (order) released on Thursday by the Housing Development department of the government of Maharashtra said the state cabinet had approved the outcome of the bidding process on December 22, 2022, following which the rights are being awarded.
Adani Properties will be the lead partner in the project for which a special purpose vehicle will be formed. The bid is for the entire project, and the total timeline is seven years to rehabilitate 6.5 lakh slum dwellers who live in an area of more than 2.5 sq km.
The project, which will help the winning bidder to book high revenues by selling lakhs of square foot of residential and commercial space in central Mumbai, was in limbo for many years. Eight bidders, including entities from South Korea and UAE, had attended a pre-bid meet held in October and three of them actually bid for the project.
The government had sought consolidated net worth of a minimum of Rs 20,000 crore to choose the winning bid. The winning bidder is required to take care of rehabilitation, renewal, amenities and infrastructure components.
Adani already has a realty arm in the country, which has executed or is in the process of executing projects in the financial capital including one in suburban Ghatkopar and another in central Mumbai's Byculla.
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