The Adani Group on Tuesday, 29 November, emerged as the highest bidder for the 259-hectare Dharavi Redevelopment Project to redevelop the largest slum in Mumbai by putting in a Rs 5,069 crore bid.
What is the project?: The Maharashtra government in February 2004 decided to redevelop Dharavi as an integrated planned township and an action plan for implementation of Dharavi Redevelopment was approved. Asia's largest slum is to be developed by using land as a resource to cross-subsidize the cost of development.
The government also decided to declare all of Dharavi as an undeveloped area and to appoint a Special Planning Authority (SPA) for its planning and development.
This project will rehabilitate the existing 6.5 lakh slum dwellers over seven years. The winning bidder (now Adani) will be able to sell residential and commercial space in the area.
How did Adani Group win the bid?: Adani Group, DLF, and Naman Group were the only three companies that bid for the project after eight firms, including those from South Korea and UAE, attended the pre-bid meet in October this year.
The Adani group outbid DLF which had quoted Rs 2,025 crore. Naman Group, a city-based developer, was the third whose bid did not qualify.
"We will now be sending the details to the government, which will consider and give final approval," SVR Srinivas, CEO of the Dharavi Redevelopment Project, told PTI.
What next?: The bid will now be sent to the state government, which will evaluate it on technical and financial eligibility.
According to PTI, the winning bidder is required to form a special purpose vehicle (SPV) for executing the project. A staggered timeline of investments has reportedly been stipulated by the government.
(With inputs from PTI.)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)