Gautam Adani-led Adani Properties on Tuesday won the bid to redevelop Mumbai’s Dharavi, one of Asia’s largest slum clusters, Moneycontrol reported. On Tuesday, Maharashtra government officials opened the financial bids for the Dharavi redevelopment project, touted as one of the largest redevelopment projects in India.
DLF and Shree Naman Developers were the other two bidders vying for the project. Adani Properties, the highest bidder, has reportedly offered Rs 5,069 crore as its investment in the project. The bidding criteria for the project was kept on the basis of the highest quoted investment amount, above the projected Rs 1,600 crore.
SVR Srinivas, Chief Executive Officer (CEO), Dharavi Redevelopment Project said, “We received three bids out of which we opened two financial bids to Adani and DLF as Naman Group did not qualify in the technical bidding. Adani Group’s bid was for Rs 5,069 crore and DLF’s was Rs 2,025 crore. We will now proceed with the approval of the state government and also set up a special purpose vehicle (SPV) for the redevelopment of Dharavi.”
After numerous failed attempts over the past 15 years, the restoration of Dharavi will soon begin with the selection of the winning tender.
According to Moneycontrol, the winner of the Rs 20,000 crore project is decided based on the highest initial investment. The project is expected to be completed in 17 years, while the rehabilitation process should be completed in seven years, according to the Maharashtra government. The Dharavi redevelopment project is expected to result in the construction of more than 10 million square feet in total.
The state government on October 1 announced a global tender for the redevelopment and rehabilitation of Dharavi after a failed attempt in 2019.
Dharavi, spread over 300 acres, is the center of several small, unorganized industries that manufacture medicine, leather, footwear and clothing. With an estimated population of one million, Dharavi is located in central Mumbai in close proximity to commercial hubs such as Bandra Kurla Complex and south Mumbai.