Adani Realty Wins Bid To Redevelop Bandra Reclamation Land Parcel
Adani Realty has secured the contract for the redevelopment of the 24-acre Bandra Reclamation land parcel, a project put up by the Maharashtra State Road Transport Corporation (MSRDC).
The decision is pending final approval by the MSRDC Board, scheduled to be discussed in their upcoming meeting.
As per reports, Adani Realty emerged as the 'preferred bidder' after offering the highest financial bid, providing 22.79 per cent revenue to MSRDC, surpassing Larsen and Toubro's bid of 18 per cent.
Despite L&T having a stronger net worth of approximately Rs 84,000 crore compared to Adani's Rs 48,000 crore, Adani's higher bid secured the preference.
The Bandra Reclamation land parcel, with a potential development area of 45 lakh square feet and valued at around Rs 30,000 crore, presents a significant opportunity for redevelopment.
Anil Kumar Gaikwad, the Vice Chairman and MD of MSRDC, highlighted that the decision was based on a revenue-sharing model. He stated that Adani's higher bid aligned with the government's interest in maximising revenue for new and ongoing infrastructure projects. Gaikwad refuted allegations of favouritism in the bidding process, emphasising its openness and transparency.
Under the proposed terms, if approved by the board, Adani Realty will be responsible for securing funds, managing clearances and permissions, and paying a minimum of Rs 8,000 crore to MSRDC as a benchmark amount. The revenue-sharing model stipulates a 22.79 per cent share for MSRDC.
The MSRDC bidding process set stringent criteria, including a minimum consolidated net worth of Rs 15,000 crore by 31 March 2023.
While concerns were raised by some builders during the pre-bid meeting, only three companies, including Adani Realty and L&T Realty, responded to the bidding process out of the 18 top players who attended the pre-bid meeting.
Despite concerns about the eligibility norms favouring only a select few, MSRDC defended the criteria, citing the developer's obligation to pay Rs 8,000 crore over 9 to 14 years.
