Maharashtra has approved the Adani Group’s bid for the redevelopment of Dharavi, one of Asia’ largest slums, which takes it a step closer to reality after delays of more than two decades.
The state government has issued the government resolution awarding the project to Adani,, SVR Srinivas, chief executive of Dharavi Rehabilitation Scheme, as per BQ Prime. He added that the letter of award will be issued soon.
Earlier, in November, Adani Group’s real estate arm had won the project in November after quoting Rs 5,069 crore. Meanwhile, DLF Ltd. made an offer of Rs 2,025 crore, the Naman Group did not qualify in the technical bidding.
The project, which is expected to cost around Rs 23,000 crore, will be one of the biggest redevelopment projects undertaken by the government agency in India through global tendering. The project will require the rehabilitation of existing tenants.
The Maharashtra government has formed a special planning authority and has already notified the entire area as an under-developed area. The selected lead partner through global bidding has to create a special purpose vehicle with 80% equity or Rs 400 crore, while the Maharashtra government will hold 20% equity or Rs 100 crore.