After a six-and-a-half-month deadlock, the government has granted approval to Adani Properties to proceed with the Dharavi Redevelopment Project (DRP) by forming a special purpose vehicle (SPV). As per the equity partnership, the state government will allocate ₹100 crore, while Adani Group will contribute ₹400 crore to initiate the project. This decision was made on the last day that Deputy Chief Minister Devendra Fadnavis held the housing department portfolio before it was transferred to Atul Save during the reshuffle.

The Maharashtra cabinet awarded the DRP bid to Adani Properties in December 2022, despite an ongoing case in the Bombay High Court. The cabinet proceeded with the project as no stay order had been issued by the court. Adani Properties emerged as the winner with a bid of ₹5,069 crore, while the DLF Group submitted a bid of ₹2,025 crore. Notably, no other company qualified for the final bid.

According to the government order, the Adani SPV must pay 25% of the ready reckoner price as a land premium to the DRP or Slum Rehabilitation Authority. Additionally, 70% of this premium must be paid to landowners, including the Brihanmumbai Municipal Corporation (BMC) and other institutions.

Upon receiving the payment, the BMC will issue a no objection certificate (NOC). The government order emphasized the importance of the DRP and stated, "As DRP is an essential project, the urban development department will ask the BMC to issue the NOC immediately."

The order also allows the SPV and DRP to seek suitable land in the Mumbai Metropolitan Region (MMR) if they are unable to find land within a 10 km radius of the project site for implementing rental housing.

Overall, the government's approval marks a significant step forward for the Dharavi Redevelopment Project and paves the way for its implementation.

“This is the first order in DRP to give go-ahead for the project. There are some other issues related to TDR; some more orders in this regard are expected in future,” said an official.

Dharavi's history dates back to the 1700s when it was an uninhabitable marsh. Over time, it witnessed the establishment of Kala Killa fortification, the arrival of potters and tanners, and the settlement of artisans and communities from different regions. Today, Dharavi is known as Asia's largest slum, capturing attention through literature and cinema.

After a global tender in October 2022, the Adani group secured the winning bid of ₹5,069 crore for the 240-hectare Dharavi Redevelopment Project (DRP). This came after a previous attempt in 2018-19 was stalled due to a court case filed by the Dubai-based Seclink group. The state government aims to initiate the project ahead of the 2024 general election, with an estimated completion time of 15 years. The redevelopment proposal includes the acquisition of 25.62 hectares of private land by the developer through a Special Purpose Vehicle. The project offers various benefits, including a Floor Space Index of 4 and Transferable Development Rights.

Image source: Free Press Journal