Mumbai's Dharavi redevelopment project goes to Adani Group, Bids with Rs 5,069 crore

Mumbai: The Adani Group has bagged the 259-hectare Dharavi Redevelopment Project by being the highest bidder with Rs 5,069 crores. It is one of the largest slums in the world.

The developer will be in charge of rehabilitation, renewal, amenities, and infrastructure components. The highest bidder is also required to form a special purpose vehicle (SPV) for executing the project. A timeline of investments has also been stipulated by the government. The project aims to rehabilitate the 6.5 lakh slum dwellers who are spread over a 2.5 sq km area in the next seven years.

The project is expected to help the winning bidder to book high revenues by selling lakhs of square feet of residential and commercial space in central Mumbai. The government has sought a consolidated net worth of a minimum of Rs 20,000 crore to choose the winning bid. It is likely to evaluate both technical and financial eligibility before awarding the project to the Adani Group. The complex project has been in limbo for a long time.

Chief executive officer of the project S V R Srinivas said Adani Group outbid DLF which quoted Rs 2,025 crores. "We will now be sending the details to the government, which will consider and give final approval. The Eknath Shinde government will approve it in a couple of weeks," he told PTI.

The Maharashtra government aims to finish the project in the next 17 years. Dharavi slum is spread across 300 acres. It is a hub of several small-scale, unorganised industries manufacturing medicines, leather, footwear, and clothes. It is one of the most densely populated slums in the world.

Eight bidders including those from South Korea and the UAE attended the pre-bid meeting in October. Only three of them actually bid for the project. Naman Group, a city-based developer, was the third one. Its bid did not qualify.