Adani group to fund Dharavi project via internal accruals, SPV stake sale

Mumbai: The Adani group, which is redeveloping Dharavi slums, plans to finance the entire project via internal accruals and possible sale of equity in the special purpose vehicle (SPV) set up for the project, according to sources.

Earlier this week, the company had appointed three companies, including noted architect Hafeez Contractor, as city planners to present a draft development plan for the Asia's largest slum cluster.

In a statement, the group, which has promised to invest Rs 21,000 crore in the project, said it roped in design firm Sasaki, consultancy firm Buro Happold as design planners for the project as well as some experts from Singapore Housing Development Board.

The statement did not mention any timeline for the project.

The Adani group had in November 2022 won the bid to redevelop Dharavi, with an initial equity investment of Rs 5,069 crore.

Hafeez Contractor is known for revolutionary social housing and slum rehabilitation authority projects in the city, while Sasaki is an interdisciplinary design firm from the US and Buro Happold is a consultancy from England known for its creative and value-driven infrastructure solutions.

When asked about the media reports that the company was about to reach financial closure for the project with two lenders agreeing to fund it, a source in the know said the tender conditions are very clear, we cannot raise any debt to fund the project. We will dip into our own finances and look at other innovative financial instruments. But currently we haven't reached a stage where we've to tap the markets to raise funds.

Sources further said the group has envisaged the project with a human centric approach, taking into consideration the flourishing businesses and entrepreneurs of Dharavi.

The objective is to not only safeguard the livelihoods of the residents of the area but also to enhance their skills. Towards this they will be setting up a skill development centre, which will have special focus on women and the youth, to all the citizens of the area, prepare them for a better future, the source said.