 "Adani Group to begin Dharavi redevelopment with Rs 12,500 cr investment")
The Adani Group may infuse around $1.5 billion or Rs 12,500 crore (approx) to kickstart the Dharavi redevelopment project in Mumbai, according to a report by Mint. The project will be funded primarily through the Adani Group's internal resources, backed by their substantial cash reserves. A special purpose vehicle (SPV), jointly owned by the Adani Group (80 per cent) and the Maharashtra government (20 per cent), has been established for this purpose.
The redevelopment of Dharavi was first proposed in 2004, however, the project faced many legal challenges and debates that prevented it from taking off. Global tenders were invited to bid on the project, but ultimately, Adani Group emerged as the highest bidder, beating DLF.
Also read: What is the Dharavi redevelopment project? Here is all you need to know
Also read: What is the Dharavi redevelopment project? Here is all you need to know
In July, the Maharashtra government had given the green light to the Adani Group to begin the project in the 590-acre slum in Mumbai. This densely populated area is home to over 900,000 residents and numerous small businesses. The ambitious project aims to
The transformation of Dharavi includes transforming the space into modern apartments, offices, and malls. The project also entails the construction of a Metro rail connecting Dharavi to other parts of Mumbai. This includes a station near "T Junction" leading to Nariman Point and connecting to the business district Bandra Kurla Complex (BKC) and Mumbai International Airport. A new road will also link Dharavi to the Bandra-Worli Sea Link, further enhancing connectivity.
The redevelopment project, planned over seven years, requires an estimated $4-5 billion. To kickstart construction and logistical activities, around Rs 12,500 crore will be injected into the SPV before project initiation. Additionally, an authentication survey is underway to verify ownership in slum buildings, and a master plan for project implementation is set to be approved jointly by the state government, Mumbai Metropolitan Region Development Authority (MMRDA), and the Adani Group.
As part of the project, slum residents will be shifted to new transit tenements constructed by the Adani Group. Adani Group Chairman Gautam Adani has stated that he is committed to providing new homes to eligible residents.