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Last month, Adani got the nod to redevelop Dharavi for ₹23,000 crores
Since 2004, many developers have had their eyes on it
But their aim was to exploit the land, so it never worked out
Can Adani do the impossible now and improve people’s lives in Dharavi? Let’s find out:
Dharavi, Asia’s largest slum, is about to undergo redevelopment.
The govt of Maharashtra has awarded the project to Adani Group — 8 months after they emerged as the highest bidder for ₹5069 Cr.
But why has Adani shown immense interest in the Dharavi Redevelopment Project(DRP)?
See, a project like Dharavi is any developer’s dream project.
It is an area spread over nearly 600 acres of prime land at the “Heart of Mumbai”.
1️⃣ Location Advantage: It is a slum that is surrounded by three most affluent neighbourhoods.
→ Bandra Kurla Complex (BKC): A swanky area with posh residential & commercial real estate.
→ Dadar: A busy commercial area with a mix of residential & industrial properties.
→ Mahim: A residential neighborhood with a mix of old and new buildings.
This juxtaposition of poverty and wealth is one of the things that makes Dharavi such a unique place.
2️⃣ Connectivity Advantage:
→ The Mumbai Airport, which is operated by the Adani Group, is just 10 kilometres away from Dharavi.
→ Dharavi is well-connected by train with Western Railway line on south, Central Railway line on east, & Harbor line on north.
→ A new underground metro station is expected to be completed soon.
→ In a few years, Mumbai to Ahmedabad bullet train will pass through Dharavi.
3️⃣ Industrial Advantage: Dharavi is a “GOLD MINE”.
It’s not just a slum, but a thriving hub of micro enterprises & small-scale industries!
Its special feature is the intricate connection between residence & workplace.
About 80% of its population both live and work there.
The slum is home to over 5,000 businesses and 15,000 single-room factories.
It is a major center for the informal economy — with an estimated annual turnover of $1 billion.
→ The Recycling industry generates an estimated $600 million in revenue each year.
→ The Textile industry generates an estimated $400 million in revenue each year.
→ The Leather industry generates an estimated $200 million in revenue each year.
→ Besides, the Aluminum Brick-making and the Pottery industries too add a great chunk to the revenue.
Now, Adani Group will enjoy all these advantages because they might get 20% to 30% of the land as the Free Sale component for their efforts!
And Dharavi’s prime location makes it one of the most expensive real estate markets in the world.
Adani could sell the land for a very high price, or develop a variety of commercial properties, such as malls, offices, and luxury apartments.
Also, if you remember, just a few months ago, the Adani Group was in the limelight after Hindenburg’s report of the group’s wrongdoings.
The DRP could help the Adani Group cleanse their image upon successful redevelopment and consequently land the group more projects across India.
But all these are glittery pictures.
Adani is not going to get it easy because of the sheer scale and complexity of the project.
There are a lot of CHALLENGES with the redevelopment plan. Just think about it.
👉🏻 The anticipated expense for the rehabilitation is approximately ₹23,000 Cr, forecasted over a span of 7 years.
However, due to uncertainties, they might potentially run out of time and capital.
👉🏻 Since Dharavi is closer to the Airport, there will be regulations on the height of the buildings which will be decided by the authorities.
That might not be ideal considering the high population density.
👉🏻 Dharavi is home to an estimated 1M people.
The project will kick off with direct resettlement of beneficiaries in hutments to be constructed on 45–47 acres of railway land.
But relocating such a huge crowd is going to be a task.
👉🏻 Residents also have major concerns regarding the eligibility criteria.
According to survey, 49,643 slum dwellers & 9,522 non-slum dwellers are eligible.
It extends only to those living in ground floor houses with proof before Jan 1, 2000.
Apart from that, approx. 7 lakh people residing on mezzanine & upper floors in slum structures are ineligible.
Those living in Dharavi since 2000 & before 2011 will be allowed to buy rehabilitation houses at construction cost.
And those living there from after 2011 will be offered rental housing under the affordable housing PMAY scheme, and eventually be allowed to buy them.
👉🏻 Most business are run from the same space where the business owners are housed.
The rehabilitation process will hinder these businesses for the time span.
And even after the redevelopment, there is no guarantee that the owners will get enough space to run their business.
These socio-economic problems could lead to objections from the residents, so it will be important to safeguard their livelihoods.
👉🏻 There are some concerns that the redevelopment of Dharavi could either lead to gentrification, which would displace low-income residents and make it more difficult for them to afford to live in the area, or that the stigma of being a ‘former slum’ might still remain attached to Dharavi.
👉🏻 A legal challenge to the project can be a potential trouble.
The govt's resolution to award the project to Adani has been contested in the Bombay High Court by Dubai-based Seclink Technology Corporation,
which had won the bid in 2019 but their contract had not yet been signed.
While Adani has expressed his commitment to providing eligible residents with new homes and preserving the spirit and soul of Dharavi throughout the transformation process,
it is to be seen whether he can really pull it off.
