Dharavi Redevelopment Project: State issues Letter of Award to Adani Group
The Maharashtra government has issued a Letter of Award to Adani Properties for the Dharavi Redevelopment Project, following the approval of their bid. Adani Properties will need to complete various tasks within specified timeframes as part of the project. The government has allocated ?100 crore, while Adani Group will contribute ?400 crore.
Mumbai: Within a week after issuing the first order approving Adani Group’s bid for the Dharavi Redevelopment Project (DRP), the state government has given the Letter of Award (LoA) to Adani Properties to execute the project and form a Special Purpose Vehicle (SPV).
As per the bid conditions and LOA, Adani Properties will have to complete the signing of a Memorandum of Understanding (MoU) with the Dharavi Redevelopment Project Authority (DRPA) in two months, deposit ₹400 crore as bank guarantee within three months and submit an integrated master plan in 150 days.
Confirming that the LoA has been issued, additional chief secretary, housing department, Valsa Nair-Sing said, “This is the first step to form the SPV for the project. After the issuance of the LoA, all further processes will take place in a time-bound manner.”
Earlier, the project saw a six-and-a-half-month deadlock after the state cabinet had approved Adani Properties’ bid for the Dharavi Redevelopment. On July 13 the housing department issued the first order to give its nod to 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 Adani group will spend ₹400 crore as the project’s chief partner.
The cabinet had awarded the DRP bid to Adani Properties in December 2022. Despite a pending case in the Bombay high court on the project, the cabinet decided to go ahead, as 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.