Mumbai: Adani Realty wins bid for 24-acre prime govt land parcel

Adani Realty has secured a significant victory in the realm of real estate development by reportedly clinching the contract for the redevelopment of the expansive 24-acre Bandra Reclamation land parcel. The Maharashtra State Road Transport Corporation (MSRDC) offered the parcel for redevelopment, with the final decision pending the MSRDC board's approval at an upcoming meeting.

Emerging as the 'preferred bidder', Adani Realty outshone competitors such as Larsen and Toubro (L&T). The deciding factor in this fiercely contested bid was Adani Realty's offering of the highest financial bid, contributing a notable 22.79 per cent of revenue to MSRDC. This surpassed L&T's bid of 18 per cent, despite L&T boasting a stronger net worth of approximately Rs 84,000 crore compared to Adani's Rs 48,000 crore, according to reports.

The Bandra Reclamation land parcel, boasting a potential development area of a staggering 45 lakh sq ft, holds a valuation of around Rs 30,000 crore, as reported by Hindustan Times. If the MSRDC board gives the green light, Adani Realty stands poised to become a transformative force in this space.

Explaining the decision-making process, MSRDC vice-chairman and managing director Anil Kumar Gaikwad said the revenue-sharing model was the pivotal factor. “Since MSRDC bids are of a revenue-sharing model, the developer who offers the maximum percentage of revenue and is beneficial to the government will be the obvious choice. Adani has offered us a higher bid, so he is our preferred choice. We need resources and funds for our new and ongoing infra projects,” he said.

Gaikwad refuted allegations of favouritism in the bidding process, highlighting transparency and the selection of financially and technically strong developers. “Technically both are strong and have met the stringent criteria and eligibility norms of the tender process. They both are capable of undertaking a project of this magnitude and scale and completing it on time. But Adani is offering us more revenue,” he added.

With Adani Realty's potential involvement, the redevelopment of the Bandra Reclamation land parcel promises to be a landmark project, potentially reshaping the landscape of Mumbai's real estate sector. If this project receives the approval of the MSRDC board, it will be Adani Realty's second big-ticket project in Mumbai, along with the redevelopment of Dharavi, the sprawling slum cluster situated on prime commercial land, not too far away from Bandra Reclamation.

Since the allotment to Adani however, residents of Dharavi have been voicing concerns and staging protests against the proposed redevelopment. The ambitious project, touted as the “world’s largest urban renewal project”, aims to transform 260 hectares of the settlement, potentially leading to the displacement of around 65,000 families.

However, residents are expressing apprehension and resistance to the redevelopment plans, citing concerns about livelihoods, homes, and the social fabric of the community. The protests highlight the complex dynamics surrounding urban redevelopment projects in densely populated areas like Dharavi, once said to be the largest slum in Asia.

While redevelopment initiatives may promise infrastructural improvement and modernisation, they also raise questions about equitable development, community participation, and the protection of residents' rights. As the protests continue, stakeholders grapple with finding a balance between economic development and social justice in the redevelopment of Dharavi, underscoring the importance of inclusive urban planning and transparent dialogue between authorities, developers, and affected communities.