Adani Group's Adani Properties has signed on an important joint venture with Mumbai’s slum rehabilitation authority to redevelop the Dharavi slum area. This will prove to be a vital move towards redeveloping the slum that has been in the news for legal controversies in recent times.
An Adani Group representative confirmed the creation of the company, Dharavi Redevelopment Project Pvt Ltd, according to a Reuters report.
Over 10 lakh people reside in Dharavi, yet development has been put off for years.
The formation of the JV is a crucial stage that takes on added importance because it happens as Adani is now being sued by SecLink Technologies Corporation of Dubai, a competitor bidder.
The project is expected to cost around Rs 23,000 crore. It will be one of the largest redevelopments by a government agency in India through global tendering.
SecLink claims that the Maharashtra state authorities unjustly halted and then reopened a 2018 bidding process in order for Adani to win. The state and Adani assert that SecLink's case should be dismissed and deny any misconduct.
The chairman of the new 80:20 Adani Properties-State government JV would be chosen by the state, according to SVR Srinivas, the head of the state-run Dharavi Redevelopment Authority. The CEO will come from Adani's side.
The Adani group will then submit a master plan, which would include important information about planning for infrastructure, rehabilitation, and public facilities, he said.
In July, the Adani Group submitted a Rs 5,069 crore bid to win the Dharavi reconstruction project. Adani group thus, successfully beat DLF, which had quoted Rs 2,025 crore, for the project.