The proposed project envisages the redevelopment of Dharavi slum, one of Asia’s largest slum clusters in Mumbai, Maharashtra. The Gautam Adani led Adani firm has been awarded the Dharavi redevelopment project with an initial investment of INR 5,069 Crore.
Overview of Dharavi Redevelopment Project:
Dharavi is located on the northernmost tip of Mumbai Island City, close to Mahim Creek. A large majority of land ownership is with the Brihanmumbai Municipal Corporation(BMC)and other Government entities. The State Government of Maharashtra has decided to redevelop Dharavi as a Special Project and notified the lands measuring about 240 Hectare as the Dharavi Notified Area and appointed Slum Rehabilitation Authority, as a Special Planning Authority.
The Maharashtra government expects to complete the rehabilitation of slum dwellers within seven years after the project’s inception in the year 2023. The entire project, including the sale portion, is anticipated to be completed in 17 years. The Maharashtra government released a global tender on October 1, 2022 for the redevelopment of the Dharavi slums. Adani Group, Delhi Land and Finance, and Shree Naman Developers were three domestic companies that had submitted bids for the Redevelopment Project.
On November 16, 2022 the bids were opened, revealing the bid amounts and the names of the bidding firms. The bids were further scrutinised based on technical and financial eligibility. While Adani Group proposed an offer of INR 5,069 crore for this project, DLF Group’s proposal stood at INR 2,025 crore. Adani Group won the contract on Tuesday , November 29 and they will have seven years to complete the project, including the rehabilitation of more than 56,000 people.
Key Project Highlights:
| Name of the Project | Dharavi Slum Redevelopment Project, Dharavi |
| Latest Status | Pre-construction |
| Location | Mumbai, Maharashtra |
| Construction Cost | INR 20,000 crores |
| Land Area (in acres) | 593 acres |
| Building use | Commercial, Residential |
| Category | Redevelopment |
| Sector | Public-Private Venture |
| Project completion (Estimated timeline) | 2031 |
Project details:
There are two parts to the project. First the project includes a rehabilitation aspect that aims to help a million people. Each eligible slum resident will receive a 405 square feet flat as part of the reconstruction. Second is the sales aspect, through which the developer is expecting to recover the costs of developing the overall project.
The officials involved in the bidding process claim that certain formalities and paperwork must be completed before construction can begin. After the survey is finished and the Master Plan has received approval from the concerned authorities, work is anticipated to start in 2023. According to SVR Srinivas, CEO of the Dharavi Redevelopment Project, establishing the Special Purpose Vehicle (SPV), selecting a project management consultant, and other steps would take about 4-5 months.
Terms and Conditions
The Selected Lead Partner has to form a Special Purpose Vehicle with 80% equity (INR 400 crore) and Government of Maharashtra will hold 20% equity (INR 100 crore). The lead partner must contribute any additional funds for the project in the form of compulsorily convertible debt and/or compulsorily convertible preference shares, as mandated by the State Government.
About:
Brihanmumbai Municipal Corporation
The Brihanmumbai Municipal Corporation (BMC) is in charge of governing Mumbai, the state capital of Maharashtra. The Bombay Municipal Corporation Act of 1888 guided its establishment.
The Slum Rehabilitation Authority has been awarded the status of a corporate body as of January 3, 1997. It is an independent, self-governing body. SRA has been authorised as a planning authority to act as a local authority for the area under its jurisdiction.
Adani Group is a global conglomerate with headquarters in Ahmedabad. Gautam Adani founded Adani Group as a commodity trading business in 1988 with Adani Enterprises serving as its flagship. Among the Group’s many business ventures are port management, electric power generation and transmission, renewable energy, mining, airport operations, natural gas, food processing, and infrastructure.
Delhi Land & Finance develops commercial projects (DLF Limited). Chaudhary Raghvendra Singh founded DLF IN 1946. The residential colonies that DLF constructed in Delhi include Model Town, Rajouri Garden, Krishna Nagar, South Extension, Greater Kailash, Kailash Colony, and Hauz Khas. DLF constructs homes, businesses, and shops.
Shree Naman Developers Limited runs a real estate company. The business develops properties for homes, businesses, and accommodation. It is classified as a Non-Government Company and registered with the Mumbai Registrar of Companies. It runs real estate enterprises with owned or leased property.
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Disclaimer: The information contained has been compiled or arrived at, based upon information got in good faith from sources believed to be reliable. All such information and opinions can be subject to change. The image featured in this article is for representation only and does not represent the project. To have the article removed or edited, please email editor@biltrax.com.
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