Adani Group, a global company headquartered in India, plans to invest $1.5 billion in the much-anticipated Adani Dharavi project. Dharavi, located in the heart of Mumbai, is one of Asia’s biggest slums. The initiative intends to turn Dharavi into a contemporary, sustainable urban area by enhancing people’s living conditions. Adani’s investment will help to build infrastructure such as houses, schools, healthcare facilities, and recreational areas. Over a million people live in highly packed, inadequate housing conditions in Dharavi.
The reconstruction operations aim to enhance living conditions and access to essential facilities for these inhabitants. The project will prioritise inclusive growth and long-term development while meeting the requirements of both inhabitants and the environment. The Adani Group wants to work with various stakeholders, including local governments and citizens, to ensure the project is consistent with the community’s vision for Dharavi’s future. The goal is to produce a development plan that addresses the community’s particular needs and ambitions by including all relevant parties.
The project will contribute significantly to Mumbai’s economic growth and provide jobs for the local community. It will also unlock Dharavi’s full potential by encouraging entrepreneurship and increasing income levels for its citizens. Dharavi’s reconstruction has enormous potential, not just socially but also in terms of real estate development. The project, when completed, will attract other investors and developers, propelling economic growth in the area even further.
The Adani Group’s investment in the Dharavi project demonstrates its commitment to long-term development and corporate social responsibility. The investment reflects the company’s focus on fostering inclusive growth and elevating underserved areas.
Indian billionaire Gautam Adani wants to transform Mumbai’s Dharavi slum into a contemporary metropolitan hub but admits that relocating its 1 million people will be difficult. The following is a timeline of the development of Adani Dharavi.
1800s: Dharavi’s rise correlates with migration into Bombay, now known as Mumbai, in the 1800s and by the late 1800s, potters, leather tanners, artists, and embroidery workers had established commerce and business in the area. Authorities claim that squatters camped on these sites and erected chaotic dwellings.
1971-76: The Maharashtra state government introduced legislation to improve living conditions in Mumbai slums by providing people with taps, toilets, and electric connections.
2004-05: Maharashtra authorises Dharavi redevelopment and appoints the Slum Rehabilitation Authority to oversee the project.
2007-08: The Maharashtra Social Housing and Action League, a non-governmental organisation, conducted a survey that revealed around 47,000 legal inhabitants and 13,000 commercial constructions in Dharavi. However, the statistic excludes many more people who live on upper levels, and the informal population has grown in the following years.
2018: Maharashtra releases a tender for Dharavi redevelopment over 7 years, with a 20% government, 80% privately controlled setup. Among the candidates are Dubai’s SecLink consortium and India’s Adani Group.
2019: SecLink’s proposal of $871 million is the biggest in 2019, with Adani coming in second with a $548 million bid.
2020: The Maharashtra government rejects the 2018 offer, claiming that acquiring specific land for the project changed costs after the bidding process finished, necessitating a rerun.
2020: SecLink sues the Maharashtra government in the Bombay High Court, alleging it of wrongfully terminating the procurement. The government denies any wrongdoing.
2022: Maharashtra releases a new tender with changed terms. Adani Group offers $614 million, while DLF of India is among the other bidders.
2023: Adani Group is awarded the Dharavi project by the state government.
The Adani Group may invest roughly $1.5 billion or Rs. 12,500 crores to commence the Dharavi redevelopment project in Mumbai. The Adani Dharavi project will be funded mainly by internal Adani Group resources, supported by considerable financial reserves. For this reason, a Special Purpose Vehicle (SPV) has been created, with the Adani Group owning 80% and the Maharashtra government owning 20%.
The reconstruction of Dharavi was initially suggested in 2004, but it needed to be protected from several legal challenges and arguments that stopped it from moving further. Global bidders were asked to bid on the project, but Adani Group came out on top, outbidding DLF. The Maharashtra government gave the Adani Group permission to begin construction on the 590-acre slum near Mumbai in July. Over 900,000 people live in this highly populated neighbourhood, home to countless small companies.
The ambitious project’s goal is Dharavi’s makeover, which involves the creation of modern residences, workplaces, and shopping complexes. The project also includes the development of a Metro rail line that will connect Dharavi to other sections of Mumbai. This contains a station near “T Junction” that relates to Nariman Point and the commercial sector Bandra Kurla Complex (BKC) as well as Mumbai International Airport. A new road will also connect Dharavi to the Bandra-Worli Sea Link, further improving connectivity.