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Successful execution of the Dharavi redevelopment project would serve as a proof of concept for India's ability to undertake large-scale urban redevelopment and help attract greater foreign and institutional capital into the sector, Chairman, CII Real Estate (Northern Region) and BCD Group Co-founder Ashwinder R Singh has said.
Speaking to ANI on the sidelines of an event on infrastructure and real estate, Singh said the scale and complexity of the Dharavi redevelopment can make its successful execution an important milestone for India's real estate sector. "Once this redevelopment is successful, as it is a joint venture between Maharashtra government and Adani, this is going to open a lot of doors for foreign and institutional capital to come into India because then we have a proof of concept that we can deliver and execute such large massive slum redevelopments in India," Singh said. He said successful execution of a project of this scale can help address some of the risks global investors associate with large urban redevelopment projects in India. "This will be a gateway for much more capital to come from not just institutions but foreign capital coming in...because capital is about risk management and once you have a validated proof, your risk can be mitigated from that perspective," he said. Singh added that the project could become "a great milestone in the history of Indian real estate" once completed. Highlighting Mumbai's experience with redevelopment, Singh said the city has developed a relatively successful redevelopment real estate market, while other regions, including Delhi-NCR, have been looking at similar opportunities. He said projects involving redevelopment at a very large scale require developers with significant financial and execution capabilities, particularly because of the challenge of relocating and rehabilitating a large number of residents. "For this size of redevelopment to happen you definitely need a very large business house with the capabilities, with the resources, with the ability to take care of so many homes that are going to be displaced, move them to the right place," Singh said. He added that the Adani Group has the scale and resources required to execute such a project. Singh also remained bullish on India's broader infrastructure opportunity, saying the country has significant potential for development over the coming years. "The next 20 years are going to be the infra decades for India," he said. (ANI)
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