Adani Group secures Dharavi redevelopment project with Rs 5,069-crore bid

Adani Group has won the bid for the redevelopment of Mumbai’s Dharavi area, one of the largest slum clusters in Asia.

The Maharashtra government authorities, on November 29, opened the financial bids for the Dharavi redevelopment project.

SVR Srinivas, Chief Executive Office of Dharavi Redevelopment Project said, “We got three bids of which we opened two financial bids of Adani and DLF as Naman Group did not qualify in the technical bidding. The bid by Adani Group was for Rs 5,069 crore and DLF was Rs 2,025 crore. We will now further go with the approval from the state government and also form a special purpose vehicle (SPV) for the redevelopment of Dharavi.”

Three companies namely Adani Realty, DLF and Naman Group had submitted bids for the redevelopment of Dharavi and rehabilitation of slum dwellers. With the selection of the successful bidder, the redevelopment of Dharavi will finally take off now, after multiple failed attempts in the last 15 years.

The winner of the Rs 20,000-crore project is decided on the basis of the highest initial investment pledge. The Maharashtra government aims to finish the project in the next 17 years and complete rehabilitation in the next seven years. Overall, more than 10 million sq ft is expected to come up as part of the Dharavi redevelopment project.

The state government on October 1 floated a global tender for the redevelopment and rehabilitation of Dharavi after a failed attempt in 2019.

Overall, eight companies from India, the United Arab Emirates (UAE), and South Korea evinced interest in the redevelopment of Dharavi in the pre-bid meeting conducted on October 11. However, only three companies submitted bids for the redevelopment.

In the last 15 years, the Maharashtra government has made at least four attempts by floating bids for the redevelopment. However, the bids did not materialise.

Dharavi, spread across 300 acres, is known to be a hub for several small-scale, unorganised industries that manufacture medicines, leather, footwear, and clothes. It is located in Central Mumbai in close proximity to the commercial hub, Bandra Kurla Complex, and south Mumbai.With an estimated population of one million, Dharavi is one of the most densely populated slums in the world and was badly hit during the pandemic. The area gained a lot of popularity after a movie named ‘Slumdog Millionaire’ was released in the year 2008, which won several awards.