Adani's Dharavi Redevelopment Faces Land Acquisition Hurdles
Billionaire Gautam Adani's joint venture struggles to secure land for rehabilitating Dharavi slum residents in Mumbai. The project faces challenges in acquiring space for ineligible inhabitants, potentially affecting its timeline.
In Mumbai, a joint venture led by Gautam Adani is encountering significant obstacles in its ambitious plan to transform Dharavi, one of Asia's largest slums. The project, which aims to rehabilitate approximately one million residents, is facing difficulties in securing land for those deemed ineligible for free housing.
Dharavi, a 240-hectare area roughly three-quarters the size of New York's Central Park, gained international recognition through its portrayal in the 2008 Oscar-winning film "Slumdog Millionaire". The slum, established in 1884 during British colonial rule, stands in stark contrast to India's rapid development, with its open sewers and shared toilets situated near Mumbai's international airport.
The Adani-led consortium secured the $619 million bid for the redevelopment project in 2023. However, the venture is now grappling with the challenge of acquiring at least 580 acres of land to house approximately 700,000 residents who settled in Dharavi after the year 2000, making them ineligible for free housing under the current plan.
SVR Srinivas, head of the Dharavi Redevelopment Authority, expressed concern about the land acquisition delays:
"In Mumbai, getting land is the toughest of things. Physically not a single inch of land has come to us. Without land, the project cannot take place, so that is a very critical factor for doing the project on time."
The project, which commenced in March 2024 with an eligibility survey, aims to complete construction by 2031. However, various government agencies are reluctant to part with their land, potentially jeopardizing the timeline.
Dharavi's redevelopment is not just a housing project; it's an attempt to transform an area with a rich cultural heritage and a thriving informal economy estimated to be worth $1 billion annually. The slum is home to diverse industries, including pottery, textiles, and recycling, and boasts a literacy rate of 69%, surpassing the national average.
The project faces additional challenges beyond land acquisition. Opposition parties have alleged that the Adani Group received undue favors in the contract award, claims the company denies. This controversy comes in the wake of allegations made by Hindenburg Research in 2023 regarding the group's business practices.
Despite these hurdles, the Adani Group remains committed to the project, acknowledging the "colossal" challenges while expressing hope that the area will produce "millionaires without the slumdog prefix" in the future.
As the project progresses, it must navigate the complex realities of Dharavi, including its unique architectural style, local governance systems, and the needs of its densely populated community of 277,136 people per square kilometer. The success of this redevelopment could set a precedent for urban renewal projects in other parts of India and the world.
