The Adani Group is poised to invest approximately Rs 12,500 crore (around $1.5 billion) to commence the long-awaited Dharavi redevelopment project in Mumbai. This significant financial infusion will be primarily funded through the Adani Group’s internal resources, leveraging their substantial cash reserves. The project’s initiation is facilitated by a special purpose vehicle (SPV), jointly owned by the Adani Group (80%) and the Maharashtra government (20%).
Dharavi’s redevelopment has been in the planning phase since 2004, facing numerous legal challenges and debates. Global tenders were invited for the project, and the Adani Group emerged as the highest bidder, beating out competitors, including DLF.
In July, the green signal was given by the Maharashtra government, granting the Adani Group the go-ahead to transform the 590-acre Dharavi slum in Mumbai. Home to over 900,000 residents and a multitude of small businesses, this ambitious initiative envisions a holistic transformation.
The project’s scope encompasses the conversion of this densely populated area into modern apartments, offices, and shopping centers. It also includes the development of a Metro rail system linking Dharavi to key areas of Mumbai, such as Nariman Point, Bandra Kurla Complex (BKC), and Mumbai International Airport. Furthermore, a new road will connect Dharavi to the Bandra-Worli Sea Link, enhancing connectivity and accessibility.
With a projected timeline of seven years, the comprehensive redevelopment necessitates an estimated investment of $4-5 billion. To initiate construction and logistical operations, the SPV will receive an injection of approximately Rs 12,500 crore. Concurrently, an authentication survey is underway to validate ownership in slum buildings, and a master plan for project execution is awaiting approval from the state government, Mumbai Metropolitan Region Development Authority (MMRDA), and the Adani Group.
As part of this transformative endeavor, slum residents will be relocated to newly constructed transit tenements provided by the Adani Group. Chairman Gautam Adani reaffirms the commitment to offer new homes to eligible residents as a pivotal aspect of the project.
