Adani forms SPV for Dharavi redevelopment project
Adani Properties has formed a Special Purpose Vehicle (SPV) for the Dharavi Redevelopment Project in Mumbai. The SPV will prepare a master plan for the redevelopment of the slum. The government will appoint its representative on the SPV.
Mumbai: In another important development in the Dharavi Redevelopment Project (DRP), Adani Properties moved a step forward and formed a Special Purpose Vehicle (SPV) called the Dharavi Redevelopment Project Pvt Ltd days before the government-mandated deadline of September 16. The government will now appoint its representative on the SPV, which will then undertake the work of preparing a master plan for the redevelopment of one of Asia’s largest slums.
“The SPV will have representatives from both the state government and the Adani group,” said a state government officer. “The chairman of the SPV will be appointed by the state government and the managing director will be appointed by the Adani group. The formation of the SPV is a crucial step in the Dharavi redevelopment, as planning and execution of the project will be done through it.”
After the team takes charge of the project, the first task will be to prepare the master plan for the redevelopment. The deadline to submit the master plan is 150 days. The plan will give details about where the rehabilitation buildings and free sale buildings will come up as well as the location of public amenities like schools, hospitals, gardens and playgrounds.
After the state cabinet approved Adani Properties’ bid in December 2022, the project saw a six-and-a-half-month deadlock. Two months ago, on July 13, the housing department issued the first order approving Adani’s appointment for the DRP. As an equity partner of the project spread over 240.35 hectares, the state government has allocated ₹100 crore from its kitty while the Adani group will spend ₹400 crore as the project’s chief partner.
Within a week of issuing the first order, the government gave the Letter of Award (LoA) to Adani Properties to execute the project and form a Special Purpose Vehicle (SPV).
The cabinet awarded the DRP bid to Adani Properties in December 2022. Despite a pending case on the project in the Bombay high court, the cabinet decided to go ahead, as the HC had not ordered a stay. Bids for the DRP were opened in November, and Adani Properties with a bid of ₹5,069 crore, was declared the winner. The DLF group, another frontrunner, had submitted a bid of ₹2,025 crore. Significantly, no other company was eligible for the final bid.