India (Commonwealth) _The Adani company is considering investing at least 12,000 crore in the reconstruction of Mumbai’s Dharavi, Asia’s largest slum.
On July 14, the Maharashtra government granted the Adani company permission to rehabilitate the packed Dharavi slum—a complicated 590-acre collection of uneven constructions, rickety tenements, and dilapidated buildings that house over 900,000 inhabitants and hundreds of tiny business establishments.
To finish the renovation in seven years as envisaged, $4-5 billion would be needed. According to two people directly involved in the development, at least 12,000 crore will be pumped into the SPV before the project begins to ensure a smooth start to the redevelopment in terms of construction, logistics, and other labor-intensive activities.
According to the persons, this sum will be in addition to the 1,014 crore already brought in by the Adani group, partially for the formation of the SPV and partly for the capital necessary for the renovation.
Before the first phase begins, the objective is to have 17,000-18,000 crore ready. Adani was required under the Dharavi RFP to raise at least Rs. 4,500 crore through convertible debentures before the first phase of real reconstruction work could begin. The 12,000 crore capital injection is in addition to that. The Adani group will provide all extra funding for the project in the form of convertible debentures or convertible preference shares.
The government is conducting an authenticating survey to establish the legitimacy of ownership in the slum structures, and an internal review procedure for extra financial requirements for the mega-redevelopment project is also ongoing and will be finished by December 31, according to the first individual.
Also read:
ADANI TO INVEST IN GREEN HYDROGEN PROJECTS
ADANI GROUP ACHIEVES TRANSNATIONAL POWER MILESTONE WITH…
WORLD’S FOURTH RICHEST PERSON GAUTAM ADANI SURPASSES BILL GATES!
ON HIS 60TH BIRTHDAY, GAUTAM ADANI PROMISED INR 60,000 CRORE FOR CHARITY!
Following these two processes, he added, the master plan for project implementation will be jointly approved (by the state government, MMRDA, and the Adani group), and the first tranche of additional funds could be infused in April-June to begin the mammoth transformation work, which includes the construction of a Metro rail project with a station (near “T Junction”) connecting Dharavi to the rest of Mumbai through Mumbai Metro Line 3, leading to Nariman Point.
From Dharavi, the Metro train will connect the commercial hub Bandra Kurla Complex (BKC) with the Mumbai International Airport. In addition, as part of the larger plan to turn Dharavi into a posh township, a new road will be built to connect to the Bandra-Worli Sea Link.
To assist the SPV in obtaining necessary approvals from the Municipal Corporation of Greater Mumbai, the Brihanmumbai Electric Supply and Transport Undertaking (BEST), Tata Power, the police department, the civil aviation ministry, the railways, the environment ministry, the Maharashtra Coastal Zone Management Authority, and others, a single-window approval system has been established.
According to the individuals, as part of the rehabilitation plan, slum inhabitants would initially be relocated to new transit tenements that the Adani Company will build on a 90-acre railway property accessible near the Dadar-Matunga region and another 6.91-hectare land nearby Dharavi.
In addition, a saltpan land tract in Wadala with a developable area of around 47 acres will be leased for up to ten years in order to make temporary relocation preparations.
The Dharavi slum redevelopment project has sparked several debates and lawsuits in the Bombay high court due to its dense mix of diverse communities since Adani group-owned Adani Properties Pvt. Ltd emerged as the highest bidder for the redevelopment in November 2022 with an initial investment commitment of at least 5,069 crore.
The Dharavi project comes on the heels of a big political shift in Maharashtra, with Nationalist Congress Party leader Ajit Pawar taking over as the state’s new deputy chief minister.
For decades, Mumbai’s officials have battled to improve the Dharavi neighborhood. Following repeated failed attempts by previous administrators, if the redevelopment plan is completed, the Adani Company, which operates the country’s busiest airport in the city, would be tasked with transforming the enormous slum into flats, offices, and shopping malls.
