The Maharashtra government finally gave its approval to the winning bid of Adani group to redevelop the Dharavi slum and rehabilitate its residents by agreeing to invest Rs.50.69 billion in a joint effort with the state government. The state government will own a 20 per cent stake in a special purpose vehicle set up for the project, with the developer holding the rest.
The project entails rehabilitating the sprawling 259-hectare Dharavi neighbourhood which, as per some reports, is said to have a revenue potential of Rs 200 billion. Last November, Adani Properties won the bid to redevelop the slum against other prominent real estate players including DLF and Naman Developers. According to a government resolution (GR) issued by the Housing Development department, the state cabinet accepted the results of the bidding procedure of December last year and the rights were granted as a result.
While laying the foundation stone for multiple development initiatives and projects worth around Rs 388 billion in Mumbai, Prime Minister Narendra Modi had mentioned that projects like Dharavi Punarvikas and Old Chawl Developments were getting back on track.
