Adani to get LOI for Dharavi project on confirming financial capacity
Real Estate

Adani to get LOI for Dharavi project on confirming financial capacity

According to Maharashtra Deputy Chief Minister Devendra Fadnavis, the Adani group, which won the tender for Dharavi redevelopment, will receive the Letter of Intent (LoI) only after demonstrating financial capability to carry out the project.

He was responding to Congress MLA Varsha Gaikwad's concerns about the project in the aftermath of Hindenburg Research's allegations of stock manipulation against the Adani group. Gaikwad also inquired whether a new tender for the project would be issued. Fadnavis claimed that the tendering process was open and transparent.

A global tender was held, and three parties responded. He stated that the bids of the two parties were proper, and that the contract was awarded to the highest bidder among them. "So it is incorrect to say that the process was flawed. The LoI has not been issued yet. This is because it is issued only after all the departments take that decision. "There is one decision (yet to be made) from the Urban Development department after which the LoI will be awarded," Fadnavis said.

The Adani group was the highest bidder for the 259-hectare Dharavi Redevelopment Project in November 2021.

DLF's offer of Rs 20.25 crore was outbid by the group's bid of Rs 5,069 crore.

The tender states that the money will be paid in advance, and the winning firm will provide a bank guarantee, according to Fadnavis.

"Before issuing the LOI, they (the company which has won the tender) have to show whether they are financially capable, they have to show whether the bank is ready to give them money, and deposit a certain amount in a dedicated account," the deputy CM said. "If they comply with everything, they can execute the project....If they do not, they will not get the LoI," he added. Dharavi, known as Asia's biggest slum cluster, is located in central Mumbai. It is also a hub of small-scale, unorganised industries that manufacture leather items, footwear and clothes among other things.

See also:
Adani Properties awarded the Dharavi redevelopment project
Three bidders vying for Mumbai’s Dharavi slum redevelopment


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According to Maharashtra Deputy Chief Minister Devendra Fadnavis, the Adani group, which won the tender for Dharavi redevelopment, will receive the Letter of Intent (LoI) only after demonstrating financial capability to carry out the project. He was responding to Congress MLA Varsha Gaikwad's concerns about the project in the aftermath of Hindenburg Research's allegations of stock manipulation against the Adani group. Gaikwad also inquired whether a new tender for the project would be issued. Fadnavis claimed that the tendering process was open and transparent. A global tender was held, and three parties responded. He stated that the bids of the two parties were proper, and that the contract was awarded to the highest bidder among them. So it is incorrect to say that the process was flawed. The LoI has not been issued yet. This is because it is issued only after all the departments take that decision. There is one decision (yet to be made) from the Urban Development department after which the LoI will be awarded, Fadnavis said. The Adani group was the highest bidder for the 259-hectare Dharavi Redevelopment Project in November 2021. DLF's offer of Rs 20.25 crore was outbid by the group's bid of Rs 5,069 crore. The tender states that the money will be paid in advance, and the winning firm will provide a bank guarantee, according to Fadnavis. Before issuing the LOI, they (the company which has won the tender) have to show whether they are financially capable, they have to show whether the bank is ready to give them money, and deposit a certain amount in a dedicated account, the deputy CM said. If they comply with everything, they can execute the project....If they do not, they will not get the LoI, he added. Dharavi, known as Asia's biggest slum cluster, is located in central Mumbai. It is also a hub of small-scale, unorganised industries that manufacture leather items, footwear and clothes among other things. See also: Adani Properties awarded the Dharavi redevelopment projectThree bidders vying for Mumbai’s Dharavi slum redevelopment

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