Slum Redevelopment | How Did Adani Win The Project To Redevelop Dharavi | Adani Do Towards The Renovation Of The Dharavi Slums

The Maharashtra government had made four attempts to launch the project before this one. With a preliminary investment of Rs 5,069 crore, the Adani Group won the contract to revive the Dharavi slum area, one of the biggest and heaviest such urban settlements in the world. Dharavi is among the world's densestly populated places and is residence to close to 58,000 people and 12,000 business buildings. 

  • According to government figures, just 2,067 rehabilitation projects involving 223,000 or so families were finished between 1995 and August 2021, despite the fact that Maharashtra's Slum Rehabilitation Authority was established in 1995 with the intention of making the state slum-free. Before 10-11 years, it was believed that Dharavi alone housed around 58,000 residential and business units; the figure has undoubtedly increased since then. 
  • In both 2008 and 2016, the state made attempts to secure a developer for Dharavi, but no one showed any interest. Two parties responded to the 2019 tender announcement, but it was cancelled. A new tender was announced on Oc.0tober 1. 
  • Only three of the eight interested companies submitted a proposal. The state government will have to approve Adani Realty as the winner of the Dharavi redevelopment project now that it has submitted the highest bid.




  • The project will thereafter begin with the formation of an SPV. Dharavi, one of the largest slum communities in Asia, rose to international prominence as one of the settings for the Oscar-winning movie Slumdog Millionaire. For the redevelopment of Dharavi and the rehabilitation of its slum people, bids from Adani Realty, DLF, and the Naman Group had been made. The initial investment was estimated at Rs 5,069 crore by Adani Realty and Rs 2,025 crore by DLF. 

Reasons behind Adani’s Win 

  • Naman Group was eliminated because it failed to satisfy the technical requirements. The current tender for the project mandates the formation of an SPV with Maharashtra government officials serving as directors, together with specialists and representatives of the primary partner who won the bid. A master plan for the project's renovation and rehabilitation will be created by the SPV.
  • Adani Group's bid is only the project's initial investment of 20,000 crores, and to meet the requirements of the bid, the company must create a special purpose vehicle (SPV). The remaining 80% of this initial investment must be paid in two installments: 20% upon submission of an integrated master plan, and another 20% before signing the development agreement.

What makes the project so crucial?

The state government has designated 240 hectares of the 300 hectare Dharavi slum cluster for the project. In addition to the anticipated large number of households, it is home to tens of thousands of small businesses, from ceramics to leatherwork. However, considering the population density and the scarcity of essential necessities, living circumstances are relatively bad. When Dharavi became a transmission hub, Covid-19 made this clear. Many worry that the measles outbreak in Mumbai may happen again.

What points have different parties brought up?

  • Rehabilitating such a large number of individuals with diverse needs is the main issue. For instance, a resident in Dharavi who has a pottery shop wouldn't want to live on a floor that was too high. They would have more space than they do now, but cottage businesses will have their own limitations.
  • Some experts have also called attention to the bid documents' omission to provide information about the proportions of rooms, bathrooms, kitchens, etc. that can be deemed sufficient for clearing. Concerns concerning the rehabilitation component's fixed seven-year timeframe, along with all associated requirements, were raised by interested parties at the pre-bid conference. 
  • For both the rehabilitation and commercial development phases of the project, they had asked for 10–12 years. The Slum Rehabilitation Authority stated that mitigating causes for delays will be taken into consideration but did not extend the deadline. 
  • A pre-bid sticking point involved the SPV's need to defend the railroads and the state government for missing the deadline for transferring the former's land for the project. The pertinent language in the tender form was left alone by the SRA, nevertheless.

What makes slum rehabilitation essential?

People construct inadequately temporary homes due to a lack of funds, which leads to an unclean atmosphere. Providing them with a quality lifestyle is absent. Therefore, when renovating slums, the emphasis should be placed more on raising the level of living for residents.

Bonus Lines | Conclusion 

  • The Maharashtra government would own 20% of the stock in a special purpose vehicle used for the project, with the Adani Group owning the remaining share. As soon as possible once free-sale commercial space development is finished, sales must be tied off in order to minimise costs and increase margins, per the project's structure and dynamics. 
  • Such massive amounts of commercial property entering the market all at once could have an influence on pricing and decrease realisations, therefore this is not without its associated negatives.
  • The natural reaction might be to dismiss the entire endeavour as a real-estate opportunity, since it would free up enormous swaths of prime land for commercialisation and sterilise the city's mid-town, which today borders the Bandra-Kurla complex, which houses the city's financial centre. 
  • The winning offer, which grants the Adani Group the right to redevelop around 593 acres, consists of two components. In accordance with the first clause, it must rehab all qualifying families who live in 400-square-foot apartments in high-rise buildings. 
  • These structures must have access to flowing water, electricity, and gas through a pipe, per the tender requirements. The sweetener that encourages the package deal is the second portion, which is the unfettered sale of housing market for profitability.  

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