Dharavi, Asia's largest slum in Mumbai, is being considered for a redevelopment initiative with an investment of at least Rs 12,000 crore by the Adani Group, two individuals directly aware of the development told Mint.
The Maharashtra government granted approval to the conglomerate on July 14 to undertake the redevelopment of the densely populated Dharavi slum, which encompasses a sprawling 590-acre area filled with irregular structures, unstable tenements, and deteriorating buildings. This area is home to more than 900,000 residents and consists numerous small commercial establishments, the financial daily added in its report.
Earlier, the Maharashtra government's redevelopment initiatives for Dharavi encountered challenges, resulting in legal disputes. Prior to 2016, the state government struggled to attract Dharavi developers. In 2018, a partnership tender garnered interest from Dubai's SecLink and the Adani Group. SecLink secured the highest bid in 2019, but the tender was canceled in 2020, leading to a legal dispute.
New tenders were later issued and earlier this year, the Adani Group was awarded the project.
An SPV (Special Purpose Vehicle), primarily owned by the Adani Group with an 80 per cent stake, and the remaining 20 per cent held by the Maharashtra government, was established in September. Subsequently, discussions have been underway internally and with state authorities, including the Mumbai Metropolitan Region Development Authority (MMRDA), to explore the $1.5 billion (approximately Rs 12,500 crore) investment, as reported by the sources mentioned earlier.
Upon securing the redevelopment rights, Gautam Adani had expressed his intention to revitalize Dharavi into a modern financial hub. This vision involves the promotion of small-scale industries and the creation of new job opportunities, with a particular focus on empowering the youth and women in the workforce.