Mumbai: After a wait of almost eight months, the Maharashtra government has given its final nod to Adani Properties to redevelop Asia’s second largest slum – Dharavi. Now, a letter of award is pending to be issued.
On Thursday, the state government issued a government resolution to Adani Properties’ bid of Rs 5,069 crore. The bid was opened on November 29 last year wherein Adani Properties had emerged as the highest bidder. This has enabled the private developer to initiate securing clearances and to mobilise men and machinery as well in the next few months to come.
Biggest redevelopment project in India
As per the document issued, a special purpose vehicle will have Adani Properties holding 80% equity, and 20% by the state government.
Adani Properties is the real estate company of Gautam Adani led Adani Group. It had emerged as the highest bidder for the project. The other two who had bid for the project were DLF and Naman Developers. DLF had quoted Rs 2,205 crore and Naman Developers did not qualify the technical scrutiny process.
This is the biggest redevelopment project in India, spreading 259 hectares. Mumbai's total area is 60,340 hectares.
Necessary orders and clearances to be given in a week
The government resolution has directed all the authorities and government departments connected with the redevelopment project to issue the necessary orders as well as clearances within a week.
This ambitious project has been on papers for over a couple of decades now. It will be a challenging task for the developer to redevelop the area in seven years, as it includes rehabilitation of lakhs of slum dwellers.
In lieu of the free housing component for around 60,000 families and 13,000 commercial units, the private company will be permitted a Floor Space Index of 4 among other concessions, better charges, inspection charges, layout deposit amount, usage of extra FSI anywhere in Mumbai, refund of state GST, among others. Each slum owner will be entitled to a minimum of 405 sq. ft. unit of carpet area.
TOTAL REDEVELOPMENT AREA: 259 Hectares
MUMBAI'S AREA: 60,340 Hectares
FREE HOUSING: 60,000 Families
COMMERCIAL UNITS: 13,000
REHABILITATION CARPET AREA: 405 Sq. Ft.
REHABILITATION DURATION: 7 Years
1990s: Architect Mukesh Mehta's idea
2004: Dharavi's revamp announced
2007: First bid floated to redevelop Dharavi
2009: State's committee called off the project. Calls it a sophisticated land grab.
2009: BMC's preliminary survey found only 37% of residents eligible in Dharavi's Sector 4
2011: MHADA permitted to develop Sector 5
2012: Mukesh Mehta removed from the project
2016: 266 families got new homes in Sector 5
2016: Fresh tenders unsuccessfully floated to redevelop Dharavi
2018: Third round of bidding
2019: UAE-based Seclink won the contract
2020: Project junked
2022 October: Bids floated for the fourth time
2022 October: RLDA-Maharashtra signs agreement to include railway land
2022 November: Three bids received
2022 November: Adani Properties bags the project
2023 July: Government resolution issued