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Transforming Dharavi: A New Vision for Mumbai's Urban Renewal
The Dharavi Redevelopment Project (DRP) remains the most unique urban renewal initiative, aimed at transforming Dharavi, one of the world’s largest and most densely populated slum areas.
The slum settlement, spanning approximately 590 acres in the heart of Mumbai, has evolved over decades into a hub of informal housing, small-scale industries, and a melting pot of diverse communities.
Historically, Dharavi began as a fishing village in the late 19th century but rapidly developed into a massive informal settlement as workers and migrants flocked to Mumbai.
Today, it is home to nearly one million residents, most of whom live in tightly packed shanties and operate thousands of small businesses within precarious infrastructure.
While Dharavi plays a key role as a vital economic engine in Mumbai, its residents continue live in substandard conditions with limited access to sanitation, clean water, and modern amenities.
After multiple delays and years of uncertainty surrounding the redevelopment and transformation of Dharavi, it is only now, under the decisive actions of the Fadnavis-Shinde-led Mahayuti government in Maharashtra, that the project has made significant progress.
Multiple Delays
The idea of redeveloping Dharavi was first proposed in 2004, with a vision to transform the slum settlements into well-planned houses, upgraded sanitation, and modern infrastructure — necessities that remain critical for the residents.
Despite endorsements from multiple governments, however, the project experienced nearly two decades of delays due to political shifts, financing challenges, and complex property rights issues among residents.
Each new administration approached the project with its own agenda, but disagreements over funding, project scope, and resettlement plans repeatedly stalled any progress.
Only in 2018, the project gained momentum, however, even then, under the Uddhav Thackery led government, the project faced another set of hurdles.
During this period, a contract was initially awarded to Dubai-based Seclink Technologies Corporation, which submitted the highest bid of Rs 7,200 crore.
The Adani Group, then, had placed a Rs 4,529 crore bid for the project.
However, the government’s delays and indecision led to the eventual cancellation of this contract. This decision drew criticism, as the delay was seen as a lost opportunity for Mumbai’s urban development.
However, with the BJP's continued efforts, especially those of Devendra Fadnavis, there was no turning back this time.
After the Mahayuti government, a coalition led by the BJP and Shiv Sena, assumed power, a renewed focus on Dharavi's redevelopment emerged. This resulted in a restructured bidding process in 2022, aiming to overcome the previous delays and inefficiencies.
The Fadnavis-Shinde Push For Redevelopment
Since coming to power, the Mahayuti government has advanced the Dharavi project by finalising land acquisitions and adjusting policies to facilitate this resettlement and infrastructure improvement.
The bidding process for the project was restructured to ensure the selection of a financially robust and technically capable developer.
The initial bid for the project, valued at around Rs 28,000 crore, which was cancelled due to previous government’s administrative indecision, raised concerns about the project's viability and the selection criteria.
The Mahayuti government decided to reinitiate the bidding process, setting up stricter eligibility criteria.
This stringent rebidding aimed to avoid delays and financial shortcomings by ensuring that only highly qualified entities could handle the unique logistical, social, and infrastructural challenges Dharavi poses.
Thus, the restructured bidding process prioritised transparency, economic strength, and experience.
The revised process attracted major players in Indian infrastructure, but it was the Adani Group, known for its financial resources and experience in large-scale projects, that won the contract.
Three domestic players — Adani Realty, DLF, and Shree Naman Developers submitted bids for the redevelopment project.
Adani proposed a highly competitive bid, committing to develop Dharavi for an estimated Rs 5,069 crore as the initial investment for the project's first phase, with a total project cost that could reach over Rs 20,000 crore.
Moving forward with this also ensured a stronger foundation for progress, prioritising not only the physical redevelopment but also the rehabilitation of its residents, as well as preserving its economic ecosystem.
Quick Actions In Two Years
-- With swift actions, the DRP made a major leap forward with the formation of a Special Purpose Vehicle (SPV) called Dharavi Redevelopment Project Pvt Ltd in September 2023.
This SPV includes representatives from both the state government and the Adani Group.
The state government appointed the chairman of the SPV, while the Adani Group named the managing director. This structure is designed to streamline the planning and execution of the redevelopment, ensuring that the project moves forward efficiently.
With the SPV in place, attention shifted to preparing the master plan for the redevelopment.
-- The project brought together architect Hafeez Contractor, design firm Sasaki, and consultancy firm Buro Happold, who were tasked with creating the blueprint for Dharavi’s transformation.
According to the Adani Group, the master plan prioritises social infrastructure, such as hospitals, public spaces, and skill development centres — essential services that the region has long lacked but that are crucial for the area's large population.
-- Further, in 2024, the long-awaited work officially began, starting with a comprehensive survey to identify homes, determine eligibility, and gather crucial details.
Each household was assigned a unique identifier for a detailed laser survey (Lidar survey).
A new survey was essential to ensure transparency and efficiency in the process. This marked a major step forward, allowing officials to identify eligible and ineligible residents more effectively.
In a first for such redevelopment projects, special considerations have been made to provide homes for the ineligible residents, understanding the needs of the community.
-- A low-key ceremony in Matunga, featuring a puja, marked the official start of construction. Fadnavis and other officials confirmed that around Rs 1,975 crore had been allocated to acquire key railway land for transit camps and housing for Dharavi’s residents.
The acquisition of this 47-acre plot of land provided crucial breathing space, eliminating the need for temporary rehabilitation and allowing the first phase of permanent rehabilitation to begin on the railway land.
-- Additionally, the state government has allocated several land parcels, outside Dharavi to facilitate the rehabilitation process.
This has been coupled with enhanced oversight mechanisms, particularly in the areas of Transferable Development Rights (TDR) and housing allocation, to ensure that the project delivers equitable outcomes.
Such process marks significant changes in how large urban projects are governed in Maharashtra, presenting a more structured approach to transparency and accountability. ?
However, the project yet remains a topic of widespread attention.
Even with systematic advancements, this redevelopment project — remains highly sensitive due to its scale and direct impacts on Dharavi residents, their livelihoods, the micro-economy developed within this area over the years.
Adding to this, opposition parties and local groups continue to raise objections, often pointing to political and individual motivations behind their resistance.
Opposition Continues To Criticise
Some of the key steps that have faced continued criticism from the opposition are listed below.
-- Land allocation
The allocation of several land parcels, including 255 acres of salt pan land, 140 acres at Madh, and 124.3 acres at Deonar dumping yard, has raised concerns about giving away lands to Adani group, while there are also concerns by residents of these areas.
Opposition parties argue that these lands could be better used for other urban purposes or that their development may harm local ecosystems.
Continuing its political agenda, the Congress has repeatedly criticised the Dharavi redevelopment project, labelling it a “Modani enterprise,” while the Shiv Sena (UBT) has taken to the streets with protests and press conferences on the issue.
So much so, that the Shiv Sena (UBT) in its election manifesto, pledged to cancel the Dharavi redevelopment project allocated to the Adani Group if it comes to power.
The party plans to reclaim all land granted to the group for the redevelopment and instead aims to establish an International Financial Services Centre (IFSC) in Dharavi.
In response, Chief Minister Eknath Shinde criticised the opposition, for frequently stalling projects.
“Do they know anything besides putting a hold on projects and halting progress?” he questioned, further noting the harsh living conditions for thousands in Dharavi.
Further, the salt pan lands allocated for rehabilitation include areas in Kanjur, Bhandup, and Mulund, have also raised concerns. Residents of Mulund and Kurla have expressed resistance to both the development and the relocation of Dharavi residents to their neighbourhoods.
As a response through a Public Interest Litigation (PIL), residents protest the development on salt pan lands, arguing that such changes could disrupt the ecological balance, overpopulate these areas, and strain the existing infrastructure.
With such concerns, it also raises important questions about the social acceptance and integration of the relocated Dharavi residents, in different Mumbai neighbourhoods.
-- Transferable Development Rights (TDR)
In the initial design of the Dharavi Redevelopment Project (DRP) under the Maha Vikas Aghadi (MVA) government, the handling of Transferable Development Rights (TDRs) was a critical issue.
TDRs, used to compensate developers with additional development rights in other areas, were offered in excess in the MVA’s project plan.
This surplus TDR allocation was criticised for inflating property values and failing to ensure project feasibility, particularly given the scale.
The previous TDR structure meant that large volumes of development rights would be generated, which developers could sell in Mumbai’s real estate market.
Additionally, this way prioritised speculative value over tangible progress — raising concerns about both financial transparency and alignment with Dharavi’s unique needs.
This issue was also considered with the changes in bidding requirements by the Fadnavis-Shinde led governance when they reinitiated the project in 2022.
This updated approach aimed to prevent the adverse effects of over-supplied TDR while ensuring economic balance across Mumbai’s real estate market.
The state recently issued a notification requiring that a minimum of 40 per cent of TDRs used in any new development across Mumbai must come from the Dharavi project itself.
This policy intended to regulate TDR use and ensures that the economic benefits of redevelopment feed back into Dharavi’s rejuvenation.
Additionally, to keep TDR transactions transparent, the Municipal Corporation of Greater Mumbai (MCGM) will implement an online platform that allows real-time tracking of TDR distribution and sales.
In response to continued opposition, Deputy Chief Minister Devendra Fadnavis defended the TDR cap and online tracking as necessary steps to prevent monopolization and foster transparency in redevelopment.
-- Resident Survey
Dharavi has long been an entry point for low-income groups migrating to Mumbai, providing both affordable housing and small livelihood opportunities.
Over time, the settlement expanded informally, and many structures grew without official regulations.
Despite being informal, these spaces have functioned as both homes and workplaces for countless individuals.
The issue of relocation became a sign of worry for many, especially with the categorisation of "eligible" and "ineligible" residents. The ineligible residents, who will not be provided housing within Dharavi itself, have raised several concerns within the community.
However, with special provisions, they will be relocated to areas within the Mumbai Metropolitan Regions.
According to the Slum Rehabilitation Authority (SRA), those who have lived in Dharavi since or before 2000 are eligible for 350-square-foot homes within the redevelopment area.
For residents who moved to Dharavi between 2000 and 2011, a 300-square-foot home will be provided within the MMR at a discounted price of Rs 2.5 lakh under the PM Awas Yojana.
Those who moved post-2011 are ineligible for provisions under the SRA rules. Yet, additional land will be used to build affordable, rental housing for those who do not qualify for free homes under the redevelopment scheme.
Moreover, a micro-economy has developed in Dharavi over decades, with industries, workshops, and small businesses, that will require special attention during the process.
To address the industrial economy, commercial spaces of 225 square feet will be provided free of cost, with additional space available for purchase at construction cost, according to statements from the Adani Group.
Way Forward
As for the case of land allotment, the process involves transferring land to various Maharashtra government departments, and not directly to the Adani Group. “Adani, as the project developer, will be responsible solely for constructing housing for Dharavi residents, not owning the land outright.”.
Thus, many locals express concerns about the political narratives surrounding the project, fearing that such claims could prevent much-needed improvements to their living conditions.
Even while claiming not to oppose the development, critics continue to push for changes that align with their specific interests and vision, leading to ongoing contention.
Thus, while continuous opposition persists, the redevelopment project is moving forward, supported by the Mahayuti government's strong determination.
The efforts of all stakeholders involved, including the state government, the Adani Group, and other partners, are gradually overcoming many of the challenges that have long hindered the project.
The redevelopment is expected to bring up a modern, well-planned neighbourhood, with improved housing, infrastructure, and amenities.
Ultimately, this vision will enable the integration of Dharavi's residents and economy, as well as open up the whole area to Mumbai’s larger population.
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