Adani Realty Triumphs Bid For Bandra Reclamation Redevelopment Worth Rs 30,000 Crore; Details Inside

Adani Realty has reportedly clinched the contract to redevelop the sprawling 24-acre Bandra Reclamation land parcel. The Maharashtra State Road Transport Corporation (MSRDC) put up the parcel for redevelopment, and the final nod is pending, awaiting the MSRDC Board's decision in their upcoming meeting.

Adani Realty emerged as the 'preferred bidder,' surpassing competitors like Larsen and Toubro (L&T). The deciding factor was Adani Realty's offering of the highest financial bid, contributing 22.79% of revenue to MSRDC. This outshone L&T's bid of 18%, 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, with a potential development area of a staggering 45 lakh square feet, holds a valuation of around Rs 30,000 crore, as reported by Hindustan Times. If the MSRDC Board gives the green light, Adani Realty will be a transforming element in this space.

Anil Kumar Gaikwad, the Vice Chairman and MD of MSRDC shed light on the decision-making process. He stated that the revenue-sharing model was the pivotal factor, aligning with the government's aim to maximize revenue for infrastructure projects. Gaikwad refuted allegations of favouritism in the bidding process, emphasizing transparency and the selection of financially and technically strong developers.

Gaikwad explained, "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."

He further added, "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."

If the MSRDC Board approves the proposal, Adani Realty will be tasked with securing funds, navigating clearances and permissions, and paying a minimum of Rs 8,000 crore to MSRDC as a benchmark amount. The revenue-sharing model dictates a 22.79% share for MSRDC.

"This (Rs 8,000 crore) is the benchmark amount. If the revenue is more than they will have to share it with us 22.79%," Gaikwad told Free Press Journal.

During the pre-bid meeting, concerns were raised about the stringent criteria set by MSRDC, particularly the minimum consolidated net worth of Rs 15,000 crore by March 31, 2023. While 18 prominent players attended the meeting, only three - Adani Realty, Godrej Properties, and L&T Realty - responded to the bidding process.

Anonymous sources raised concerns about eligibility norms favouring only a select few. Some builders argued that the Rs 15,000 crore net worth requirement in a single entity limited opportunities for all but a few developers. However, MSRDC clarified that this criterion was introduced considering the obligation of developers to pay Rs 8,000 crore to MSRDC over 9 to 14 years.