Govt appoints two directors on Dharavi SPV

The state government has appointed the additional chief secretary of the housing department and the CEO of Dharavi Redevelopment Authority on the board of directors of Adani group's special purpose vehicle for the Dharavi redevelopment project.

Mumbai: The state government on Monday appointed the additional chief secretary of the housing department and the chief executive officer of Dharavi Redevelopment Authority (DRA) on the board of directors of Adani group’s special purpose vehicle (SPV), Dharavi Redevelopment Project Pvt Ltd (DRPPL). The CEO of DRA will also work as non-executive chairman of the board.

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The special purpose vehicle, formed in September 2023 after Adani properties won the bid to redevelop Asia’s largest slum, is mandated to have representatives from both the state government and the Adani group. The proposal to nominate two persons on its board of directors was under the consideration of the state government. The order regarding appointment of additional chief secretary of the housing department Valsa Nair and CEO of DRA SVR Srinivas was issued on Monday.

“Additional chief secretary of housing department and chief executive officer of Dharavi Redevelopment Authority will work as government-nominated directors on DRPPL,” states the order. The CEO of Dharavi Redevelopment Authority will work as non-executive chairperson of the board of directors, it further notes.

The redevelopment project was mired in deadlock for six-and-a-half months after the state cabinet approved Adani Properties’ bid of ₹5,069 crore in December 2022. Two months ago, on July 13, the housing department issued the first order approving Adani’s appointment for the project spread over 240.35 hectares. As an equity partner in the project, the state government has allocated ₹100 crore from its kitty while the Adani group will spend ₹400 crore as the project’s chief partner.