Gautam Adani-run Adani Group won the government tender for Dharavi redevelopment project for Rs 5,069 crore, beating DLF Group that submitted a bid of 2,025 crore, on Tuesday.
The Maharashtra government authorities, on November 29, opened the financial bids for the redevelopment of Dharavi, the largest slum cluster in Asia. The winner was selected on the basis of the highest initial investment pledge.
Under this bid, more than 10 million sq ft of Dharavi will be redeveloped for the Rs 20,000 crore project. The project is due for finishing in the next 17 years and rehabilitation will be done in the next seven years, according to reports.
Chief executive office, CEO, of Dharavi redevelopment project, SVR srinivas said there were three bids, two financial bids from Adani and DLF and the third one, by Naman Group which did not qualify the technical bidding.
He also said that further approval from the state government is required on this and a special purpose vehicle (SPV) needs to be formed before starting the process.
The redevelopment of Dharavi has been on every government’s plan in Maharashtra for the past 15 years. But previously, at least four bids that were floated by the Maharashtra government could not materialise.
The tender for the redevelopment and rehabilitation of Dharavi was floated by the state government on October 1, after a failed attempt in 2019.
In the pre-bid meeting, on October 11, eight companies from India, including the United Arab Emirates (UAE), and South Korea expressed interest in the redevelopment of Dharavi. However, only three companies submitted their bids.
Dharavi, located in central Mumbai, spreads across 300 acres and is known to be a hub for several small-scale, unorganised industries that manufacture medicines, leather, footwear, and clothes. It is in close proximity to the commercial hub, Bandra Kurla Complex, and south Mumbai.
It is one of the most densely populated slums in the world and was badly affected during the pandemic.