In a significant development, the Maharashtra government has granted approval to the Adani Group’s proposal for the redevelopment of Mumbai’s sprawling Dharavi slum, home to over 900,000 residents. This decision comes nearly eight months after the conglomerate emerged as the winner of the tender to develop India’s largest slum. The state’s housing department confirmed on Friday that the Adani Group would be the government’s partner for the ambitious Dharavi redevelopment project, which requires an investment of at least $3 billion. A copy of the official government resolution has been reviewed by Mint.
This approval is the initial step in a series of clearances necessary for the slum redevelopment project to move forward. It follows a period of political upheaval in Maharashtra, where Ajit Pawar, a leader of the Nationalist Congress Party (NCP), recently joined the state government as the deputy chief minister and finance minister, breaking ranks with his uncle, Sharad Pawar. However, it is anticipated that Adani will secure the remaining approvals for the project within the next month.
The government resolution stated, “As the main partner for the implementation of Dharavi Redevelopment Project under Dharavi Notified Area, the maximum bidder is (mainly) Adani Properties Pvt. Ltd. The tender of ₹5,069 crore is being approved for the appointment.”
Furthermore, the housing department has decided to issue the letter of acceptance and proceed with the establishment of a special purpose vehicle (SPV) model for the Dharavi redevelopment project. However, additional approvals from the municipal authorities and urban development department are required before the SPV can be formed.
If the government’s latest decision is successfully implemented, the Adani Group, which already operates the city’s airport, will undertake the transformation of Dharavi into a modern residential, commercial, and retail complex. Administrators in Mumbai have faced challenges for decades in modernizing the slum.
The proposed SPV will have an initial corpus of ₹500 crore, with the Maharashtra government holding a 20% stake amounting to an investment of ₹100 crore, while Adani Properties will own the remaining 80% with an investment of ₹400 crore.
The government has authorized the appointed chief executive officer and special task officer of the Dharavi redevelopment project/slum rehabilitation authority to initiate internal implementation promptly.
DLF Ltd and Shri Naman Developers Pvt Ltd were among the other contenders for the project, but Adani emerged as the preferred choice.
The state government and the Adani Group have reached an agreement on the terms and conditions for the transfer of development rights certificates for the Dharavi redevelopment project, which will be determined based on eligible owners in the slum and the total potential built-up area for redevelopment.
An official, speaking on condition of anonymity, revealed, “The two parties have agreed upon certain new indexation of TDR conditions so that the corporation also benefits adequately in terms of gaining the flexibility to redevelop other areas in Mumbai city on the basis of the tradeable/transferrable TDR certificates.”
Following the issuance of a letter of intent and subsequent letter of allotment after the creation of the SPV between the Adani Group and the Maharashtra government, groundwork for the Dharavi redevelopment can commence.
The official further explained that after conducting an authentication survey to verify the identities of potential eligible owners, a portion of them may be relocated to transit buildings in the initial phase of the project, which will be constructed in lands adjacent to the Dharavi slum.
The recent government resolution also approved the development of rental houses for eligible Dharavi residents in suitable land within a 10-kilometer radius of the slum in the Mumbai metropolitan region during the redevelopment period.
As the Dharavi slum redevelopment project moves forward, it holds the promise of transforming the lives of thousands of residents and contributing to the revitalization of Mumbai’s urban landscape.
Sources By Agencies