Dharavi, one of Asia’s largest informal settlements, is an economic powerhouse with diverse industries — ranging from pottery and leatherwork to recycling and garment manufacturing — generating an estimated annual turnover of Rs 10,000 crore. This intricate web of informal and formal enterprises has woven Dharavi deeply into Mumbai’s economic fabric. However, ongoing redevelopment plans threaten to disrupt this ecosystem, potentially endangering livelihoods and undermining a unique model of inclusive urban entrepreneurship.
Political factors further complicate redevelopment efforts. Dharavi has long been a stronghold for regional parties opposed to the Bharatiya Janata Party, and the prospect of relocating or dispersing a concentrated voter base fuels political resistance, adding complexity to the process.
Urban planners caution that redevelopment must preserve Dharavi’s distinct social and economic character rather than merely replacing slums with high-rise buildings. Dharavi’s strategic connectivity to Mumbai’s suburban railways, metro lines, and coastal road makes it a coveted real estate hub. Land values near Dharavi are expected to exceed Rs 50,000 per square foot, creating lucrative opportunities for investors but also heightening risks of gentrification and exclusion.
The Maharashtra government aims to facilitate redevelopment through land swaps and transferable development rights (TDR), with developers required to acquire much of their TDR from a special purpose vehicle linked to the Dharavi project. While authorities assure housing for eligible residents, uncertainties linger regarding the rights of ineligible residents, small businesses, and industrial units, many of whom could be relocated to the city’s periphery.
Environmental sustainability and inclusivity present critical challenges. The plan promises formal property titles for slum dwellers, a progressive step for tenure security. Yet, the decade-long timeline and vast relocation scale risk straining infrastructure and social cohesion. Sensitive zones like former salt pans and landfill sites demand rigorous environmental safeguards to achieve net-zero carbon emissions and resilient urban design.
Ultimately, Dharavi’s redevelopment is a crucial test of Mumbai’s ability to build a sustainable, equitable city that balances economic vitality with social justice. Transparent governance and resident participation will be vital to realising an inclusive urban future.
Source: Urban Acres
