The Maharashtra government recently approved the Adani group's proposal to redevelop Mumbai's Dharavi slums, after failed attempts over the years. Dharavi is Asia's largest slum, and the previous attempts to redevelop it were unsuccessful. Adani Properties Pvt. Ltd. was selected as the main partner for the Dharavi Redevelopment Project, with a bid amount of ₹5,069 crore.
While additional permissions and approvals are still required to move forward with the project, the Adani group has previous successes managing the city's airport, which speaks to their capabilities. Their responsibilities involve converting the slum into flats, offices, and malls.
The redevelopment project will be carried out under the Special Purpose Vehicle (SPV) model and requires approvals from the urban development department and municipal authorities before its formation. The corpus of the SPV stands at $500 billion, with Adani Properties investing $400 billion, constituting 40% ownership of the firm. The Maharashtra government is investing $100 billion, constituting 20% ownership of the firm.
While the recent political turmoil in Maharashtra may potentially impact the project timeline, the government's decision to hire Adani Group for the Dharavi slum redevelopment project marks a significant milestone. The project has been long overdue, and the government's decision to move forward with it is an encouraging step towards changing the landscape of Asia's largest slum.
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