Maha govt seal on Adani for Dharavi redevpt, 1st buildings likely in 2024 – ET Infra

MUMBAI: Adani Properties Ltd was formally appointed the lead developer for the Dharavi redevelopment project on Thursday with the state housing department issuing a Government Resolution.

The government is keen to kickstart the beleaguered project and ensure at least a few buildings come up before the 2024 Lok Sabha elections. Sources said the first ones are likely to be on 40 of the 47 acres of railway land purchased for Rs 3,800 crore and added to the project.

Deputy CM Devendra Fadnavis who was handling the housing portfolio cleared the GR a day before he handed over charge to his colleague Atul Save on Friday.

The first redevelopment project was taken up in Dharavi in 1987 under the Prime Minister’s Grant Programme. In 2004, Dharavi was declared a vital infrastructure project. Tenders had been invited five times since.

“Now that the government has issued the GR, we shall issue the Letter of Award shortly,” said S V R Srinivas, in-charge, Dharavi Redevelopment Project Authority (DRPA).

The GR specifies the developer be issued the Letter of Award only after the firm puts in Rs 400 crore. DRPA and Slum Rehabilitation Authority (SRA) will now form a special purpose vehicle (SPV) with lead developer Adani for execution of the project. The government will invest Rs 100 crore in the SPV and hold 20% equity.

The SPV has to deposit 25% of the Ready Reckoner Rate as premium for the slum land to be redeveloped. The BMC is the largest landowner in Dharavi, owning up to 61% of the area, the state government and private owners have 18% each and the railways owns 3%. Each of the landowners will be paid 70% from the premium collected.

Adani had bid Rs 5,069 crore, the highest among three for the project in 2022 (see box). The state cabinet approved awarding of the contract to Adani in December 2022, but the issue of the GR was delayed after the controversy over short-seller Hindenburg’s report on Adani shares.

Besides owning 18% of Dharavi, the state government also paid Rs 800 crore for the railway land. Another Rs 200 crore was to be paid by this April. Besides, the railways will be given Rs 2,800 crore in profit-sharing and its staff quarters will be redeveloped for free. The SRA had been asked to provide Rs 300 crore as loan, of which Rs 200 crore was to be paid to the railways and Rs 100 crore as equity for the SPV. Officials said the money will be paid soon.

“Around 40 acres of railway land is being made available. This land is largely vacant, and the first rehab buildings will come up on this plot. Thus, slum dwellers will be moved directly into the rehab tenements without having to move into transit camps. The topography survey and the household survey will be carried out alongside construction of rehab tenements,” said sources.

The household survey is required to find out the number of slum dwellers eligible for free housing. The last survey showed there are around 58,000 eligible slum dwellers and an equal number of ineligible slum dwellers.

The ineligible slum dwellers will now be divided into those who bought tenements up to 2011 and those afterwards. In a recent GR, the state has promised a tenement at Rs 2.5 lakh for all slum dwellers up to 2011.

  • Published On Jul 15, 2023 at 08:41 PM IST

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