MUMBAI: The Dharavi slum redevelopment plan, spearheaded by a joint venture led by billionaire Gautam Adani, presents a lucrative opportunity with an estimated revenue potential of Rs 20,000 crore.
However, the ambitious reconstruction faces a significant hurdle: securing the necessary land for the project.
To accommodate those deemed ineligible for free housing, the Adani-led venture has sought additional land from various local and federal agencies. Despite these efforts, no land has been secured, according to SVR Srinivas, the head of the Dharavi Redevelopment Authority.
The reluctance of government agencies, which have their own plans for the land, poses a challenge to the project’s progress, as reported by Reuters.
The redevelopment, awarded to Adani Properties in November 2022 after a competitive bidding process involving DLF and Naman Developers, aims to transform the vast Dharavi slum in central Mumbai, near the BKC business district.
Free housing
The project is expected to rebuild the area, providing homes primarily for those who have resided in Dharavi since before 2000, who will receive free housing.
The challenge, however, lies in housing the roughly 7 lakh people considered ineligible under this criterion. To address this, the joint venture has applied for additional land but has encountered difficulties in obtaining it due to competing interests from government agencies.
The Dharavi redevelopment project is valued in crores, with the land not being transferred to the Adani group but rather to various Maharashtra government departments.
The Adani Group, acting as the project developer, is responsible for constructing homes, which will then be transferred back to the government for allocation to Dharavi residents.
Under the Dharavi Redevelopment Project Private Ltd (DRPPL), the Adani Group will construct both residential and commercial units in collaboration with the Maharashtra government.
Once completed, these units will be handed over to the Dharavi Redevelopment Project/Slum Rehabilitation Authority (DRP/SRA) for distribution based on survey results.
Misunderstandings about the project were clarified, noting that, according to tender terms, the land remains allocated to DRP/SRA at government-approved rates, with DRPPL responsible for development costs.
None to be displaced
The tender also includes a state support agreement, stipulating that the state government will assist in providing land to its DRP/SRA department for the project. Notably, no residents of Dharavi will be displaced under the DRP/SRA scheme.
Residents who lived in Dharavi before January 1, 2000, will be rehabilitated within the slum itself.
Those who moved in between January 1, 2000, and January 1, 2011, will receive homes under the PMAY scheme in the Mumbai Metropolitan Region for a nominal fee of Rs 2.5 lakh or through rental housing options.
Residents who arrived after January 1, 2011, until the official cutoff date will be accommodated under the state’s upcoming affordable rental housing policy, with options for hire-purchase arrangements.
350 sq ft flats
The Dharavi redevelopment plan differs from standard SRA schemes, offering qualifying residents homes of up to 300 square feet. In this project, flats will be 350 square feet—17 percent larger than those in other SRA schemes in Mumbai.
Additionally, the project includes 10 years of free maintenance and allows for 10 per cent of commercial space within residential premises, ensuring sustainable revenue for housing societies.
Eligible businesses will receive free premises, and a five-year state GST rebate aims to enhance profitability, integrate these businesses into the formal economy, and create growth opportunities.
