Adani Realty has emerged as the ‘preferred bidder’ for the redevelopment contract of the 24-acre Bandra Reclamation land parcel in Mumbai. The Maharashtra State Road Transport Corporation (MSRDC) initiated the bidding process, and Adani Realty’s proposal, offering the highest financial bid, is currently pending final approval by the MSRDC Board.
Adani Realty’s bid, providing 22.79 percent revenue to MSRDC, surpassed the bid by Larsen and Toubro (L&T), which offered 18 percent. Notably, despite L&T boasting a stronger net worth of approximately ₹84,000 crore compared to Adani’s ₹48,000 crore, the higher bid secured preference.
The Bandra Reclamation land, with a potential development area of 45 lakh square feet, holds an estimated value of around ₹30,000 crore. The bidding process, based on a revenue-sharing model, saw Adani Realty aligning with the government’s interest in maximizing revenue for infrastructure projects.
Anil Kumar Gaikwad, Vice Chairman and MD of MSRDC, emphasized the openness and transparency of the bidding process, dispelling allegations of favoritism. Gaikwad highlighted that both Adani Realty and L&T met the stringent criteria for technical and financial capability.
Gaikwad stated, “Since the 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.”
If approved, Adani Realty will undertake responsibilities such as fund allocation, securing clearances and permissions, and making a minimum payment of ₹8,000 crore to MSRDC as a benchmark amount. The revenue-sharing model designates a 22.79 percent share for MSRDC, allowing for additional revenue sharing if the project’s income exceeds expectations.
The bidding process, which included stringent criteria such as a minimum consolidated net worth of ₹15,000 crore by March 31, 2023, drew the participation of 18 prominent players in the real estate sector. However, only three, including Adani Realty and L&T Realty, responded to the bidding process.
While some concerns were raised regarding the eligibility norms favoring a select few, MSRDC emphasized that the criteria were established to address concerns and ensure the financial capability of developers, considering the substantial financial commitment of ₹8,000 crore over 9 to 14 years to MSRDC.