The CEO of the Dharavi Redevelopment Project (DRP) under the Maharashtra Slum Rehabilitation Authority, SVR Srinivas, estimates that the ambitious redevelopment of Dharavi, the largest slum in Asia, which spans 600 acres in Mumbai, will require an investment of almost Rs 3 lakh crore, including rehabilitation and infrastructure development.
An Adani Group-led entity, Navbharat Mega Developers Pvt Ltd (NMDPL), is spearheading the project, with the group holding an 80% stake while the Maharashtra government owns the remaining 20%. So far, Rs 1,000 crore has been invested in the redevelopment.
“The total investment in this project is projected to be around Rs 3 lakh crore, with Rs 25,000 crore dedicated to the rehabilitation component alone. Funding will be mobilised through Compulsorily Convertible Debentures (CCDs) and Compulsorily Convertible Preference Shares (CCPS),” said Srinivas. Over Rs 2,000 crore has already been secured through CCDs, and an additional Rs 3,000 crore is being raised.
Srinivas added that the business is amenable to working with other developers on smaller land parcels through partnerships that share revenue or space. The project will be financed through a free-sale component and the monetisation of Transferable Development Rights (TDRs).
The project intends to change the landscape of Dharavi with a total planned development of about 240 million square feet over the next 15 to 20 years, which includes 100 million square feet for rehabilitation and 140 million square feet for free sale. A survey to map eligible residents and structures has already identified over 52,000 units and is expected to be finished in a month. Additionally, 84,000 out of 140,000 units, including commercial spaces, have been numbered. In the next two to three months, a special committee consisting of two high court judges will decide the future of religious structures.
The redevelopment project officially commenced in January, with the government granting a Commencement Certificate (CC) to NMDPL. The first phase of rehabilitation, covering over a million residents, has begun on a 6.4-acre land parcel in Matunga West and is set to be completed within seven years. This phase includes modern housing for railway employees and commercial space for Dharavi residents.
In March, the Railways gave the Matunga West site as part of a 27.6-acre block of land that also includes a scrapyard close to the Mahim railway station. For the project, 45 acres of railway land have been sought; one more plot in Kurla has already been acquired, and approval is still pending for the remaining plots in Mulund, Malad, and Deonar.
Dharavi houses over 850,000 permanent residents, with the transient population pushing the figure past 1 million. It has a staggering population density of 354,167 people per sq km, making it the most overcrowded zone in Mumbai, which itself ranks as the world’s sixth most densely populated city.
In November 2022, the redevelopment bid was won by Adani Properties, the real estate division of the Gautam Adani-led Adani Group, with an offer of Rs 5,069 crore. The business has hired worldwide city and infrastructure planning specialists to rethink and design Dharavi’s development, guaranteeing a master plan that satisfies international standards.
Source: The Economic Times
