Mumbai: The Maharashtra government launched Dharavi Redevelopment Project (DRP) to transform Dharavi. This ambitious project remains the most unique urban renewal initiative, aimed at transforming Dharavi, one of the world’s largest and most densely populated slum areas.
Dharavi spans approximately 590 acres in the heart of Mumbai. This slum has evolved over decades into a hub of informal housing and small-scale industries. 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.
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.
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 . But, this project experienced nearly two decades of delays due to political shifts, financing challenges, and complex property rights issues among residents.
The Uddhav Thackery led government awarded a contract to Dubai-based Seclink Technologies Corporation, which submitted the highest bid of Rs 7,200 crore in 2018.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.
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.
The Mahayuti government decided to reinitiate the bidding process, setting up stricter eligibility criteria. Three Indian firms — Adani Realty, DLF, and Shree Naman Developers submitted bids for the redevelopment project.
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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.
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.
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.
But, opposition parties especially Congress is against this project. The Congress has repeatedly criticised the Dharavi redevelopment project, labelling it a ‘Modani enterprise’.
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.