Adani Ignites Dharavi Transformation with $1.5 Billion Investment
New Delhi : The Adani Group is planning to invest approximately $1.5 billion, equivalent to Rs 12,500 crore, to initiate the long-awaited Dharavi redevelopment project in Mumbai. This substantial investment is expected to be primarily financed through the Adani Group’s internal resources, leveraging their significant cash reserves. To facilitate this, a special purpose vehicle (SPV) has been established, jointly owned by the Adani Group (80 percent) and the Maharashtra government (20 percent).The redevelopment of Dharavi has been a proposal since 2004, but legal challenges and debates have hindered its commencement. After inviting global tenders for the project, the Adani Group emerged as the highest bidder, surpassing DLF.
In July, the Maharashtra government granted approval for the Adani Group to kickstart the project in Dharavi, a sprawling 590-acre slum in Mumbai with over 900,000 residents and numerous small businesses. This ambitious redevelopment project envisions transforming the Dharavi space into modern apartments, offices, and malls. It also includes the construction of a Metro rail network connecting Dharavi to various parts of Mumbai. This rail system will include a station near the “T Junction,” providing connectivity to Nariman Point, the Bandra Kurla Complex (BKC), and Mumbai International Airport. Additionally, a new road will link Dharavi to the Bandra-Worli Sea Link, further enhancing connectivity. The entire project, planned to span seven years, is estimated to require an investment of $4-5 billion. To initiate construction and logistical activities, approximately Rs 12,500 crore will be infused into the SPV. Simultaneously, an authentication survey is underway to verify ownership of buildings in the slum, and a master plan for project implementation is set to receive joint approval from the state government, the Mumbai Metropolitan Region Development Authority (MMRDA), and the Adani Group. As part of the project, slum residents will be relocated to new transit tenements constructed by the Adani Group. Gautam Adani, Chairman of the Adani Group, has expressed his commitment to providing new homes to eligible residents. In 2004, the Maharashtra state government had envisioned the transformation of Dharavi into a cluster of high-rises with improved urban infrastructure. The plan included the relocation of 68,000 people, including slum dwellers and those with commercial establishments. Those with proof that their slum structure existed before January 1, 2000, would receive 300 sq ft houses for free, while those who settled in Dharavi between 2000 and 2011 would be offered these homes at a price. Despite these plans, the project remained stagnant for various reasons. Dharavi occupies a prime location in the heart of Mumbai, in close proximity to the affluent Bandra-Kurla Complex, known for its high commercial office premiums.
This sprawling 2.8 sq km slum is home to an informal leather and pottery industry employing over 100,000 people. In late November 2022, the bids for the Dharavi redevelopment project were opened once again, and the Adani Group emerged as the highest bidder. SVR Srinivas, the CEO of the Dharavi redevelopment project, reported that the Adani Group, led by billionaire Gautam Adani, submitted a bid of Rs 5,069 crore for the project, surpassing the DLF Group’s quote of Rs 2,025 crore .Gautam Adani, during the Adani Group’s annual general meeting, reminisced about his initial encounter with Dharavi in the late 1970s. He was captivated by the vibrant mix of cultures and languages in the area. Adani reiterated his commitment to providing new homes for eligible residents while preserving the spirit and essence of Dharavi throughout the transformation process.
He expressed that after redevelopment, visitors, including former world heavyweight boxing champion Mike Tyson, who had shown interest in visiting Dharavi, would find the neighborhood just as “spirited and alive” as it has always
