 "Dharavi")
The Maharashtra government is yet to issue the work order for the Dharavi development project, even though eight months have passed since Adani Realty was declared the highest bidder, according to a report by The Hindu Businessline (BL).
Government officials were quoted as saying they are unaware of when the government resolution will be passed, and senior officials have said that a decision will be taken at the highest level.
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The project was supposed to be started by Adani Realty, which was declared the highest bidder in 2022. However, there has been no progress in issuing the authorisation letter for the work to start.
With an initial investment commitment of Rs 5,069 crore against a base price of Rs 1,600 crore, Adani group had emerged as the highest bidder for the redevelopment of Mumbai's Dharavi, one of the biggest slum dwellings in the country. The state government has to come up with a formal notification to approve the bid made by the Adani group.
BL quoted sources as saying that the government is likely waiting for the Securities and Exchange Board of India (SEBI) to submit its report on the allegations made by Hindenburg Research against the Adani group. The probe will be completed by August 14. Adani Group sources say they are still waiting for the Dharavi Redevelopment Project to give them the go-ahead to start the project. Once the Letter of Intent (LoA) is issued, the developer will form a special purpose vehicle (SPV) and contribute 80 per cent of the equity, with the remaining 20 per cent being contributed by the state government.
Company officials said that a few months delay would not be a major issue, as the project had a long gestation period, and they were committed to completing it.
The Dharavi redevelopment project, when completed, will be one of the largest redevelopment projects in India. The project will cover an area of 2.8 sq km and will resettle approximately 68,000 slum dwellers and commercial enterprises.
