Dharavi's Development Jackpot: A 3 Lakh Crore Gamble

The redevelopment of Dharavi, Asia’s largest slum, situated in Mumbai over 600 acres, is a massive undertaking with an estimated total investment of nearly Rs 3 lakh crore. This investment will cover both rehabilitation and infrastructure development in the area. The project is primarily being driven by an entity of the Adani Group, Navbharat Mega Developers (NMDPL), which holds 80% of the stake, while the Maharashtra state government holds the remaining 20%.

The CEO of the Dharavi Redevelopment Project (DRP), SVR Srinivas, shared that Rs 25,000 crore out of the total investment will be allocated specifically for rehabilitation purposes. The project is already well underway, with an initial investment of around Rs 1,000 crore. NMDPL has secured over Rs 2,000 crore through compulsorily convertible debentures (CCDs) and is aiming to raise an additional Rs 3,000 crore.

Revenue for the project will also come from transferable development rights (TDRs) and the free-sale component. The company is open to collaborations with other developers through revenue or space-share alliances for smaller land parcels while acting as the master planner.

The redevelopment plan envisions the construction of nearly 240 million square feet over 15 to 20 years, with 100 million square feet dedicated to rehabilitation and the remaining 140 million square feet for free-sale development. A survey to identify eligible residents and existing structures has mapped over 52,000 units, with completion expected in a month. Additionally, more than 84,000 structures, including commercial properties, have been cataloged out of 1,40,000 units.

A committee, including two High Court judges, has been formed to make decisions regarding religious structures, with a resolution expected in two to three months. The final draft of the master plan for the project is also anticipated to be completed within the same timeframe.

News by Rahul Yelligetti.