Cabinet approves Adani’s bid for Dharavi redevelopment
Mumbai: The Maharashtra cabinet on Friday approved the bid of the Adani group in the Dharavi Redevelopment Project
Mumbai: The Maharashtra cabinet on Friday approved the bid of the Adani group in the Dharavi Redevelopment Project. The pending court case in this matter was discussed at the meeting but the cabinet decided to go ahead with the proposal, as the Bombay high court had not put a stay.
Bids for the Dharavi Redevelopment Project were opened at the end of November and the Adani group, 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.
After a stalled attempt in 2018-19, the Shinde government floated a global tender in October for the 240-hectare redevelopment project. The base price for the bidding was ₹1,600 crore.
When Adani’s bid came up for approval, officers and ministers discussed the issue of the pending court case regarding the project. In 2018-19, the Dubai-based Seclink group had emerged as the highest bidder, with a bid of ₹7,200 crore. The Adani group lost to Seclink, as it had bid ₹4,500 crore. However, the bidding process was later cancelled, following which the Seclink group filed a case in the Bombay high court challenging the government’s decision.
Sources said the state cabinet reviewed the matter in the meeting and decided that as the court had not issued any interim order or put a stay on the current bidding process, the state could go with Adani’s new bid for the Dharavi redevelopment project.
The redevelopment of Dharavi is an ambitious project for the state government, which will take about 15 years to complete. The Shinde-Fadanvis government wants to kick-start the project so that work on it can commence before the 2024 general election.
Dharavi, one of the largest slums in Asia, is spread over 240 hectares of prime land in the middle of the city. The plan to redevelop it has been in the pipeline for over two decades. In 2004, the government officially decided to take up the project, which involved the rehabilitation of more than 60,000 families and 13,000 commercial units in 405-square-feet tenements.
The redevelopment project proposes that the developer acquire 25.62 hectares of private land. This project will be executed by a Special Purpose Vehicle formed by the developer. Apart from an FSI of 4 and Transferable Development Rights, the project has many other benefits.
Since 2004, successive governments have tried to put the project on track but failed because of unfriendly real-estate market conditions, viability issues and the number of eligible slum dwellers. The Shinde-Fadnavis government recently decided to buy land from the Railways and hand it over to the developer to make the project profitable.