The first phase of the Dharavi redevelopment project, comprising about 10,000 rehabilitated houses, is expected to be completed within the next 18 months, marking a significant milestone in one of India’s largest urban renewal initiatives, Maharashtra Chief Minister Devendra Fadnavis informed the state Assembly on July 7.
Addressing the state assembly on July 7, Fadnavis said around 10,000 resettlement houses will be ready in the first phase, which will be an important milestone in the transformation of Mumbai’s most densely populated informal settlement.
The Chief Minister also said that the state has identified 19 cluster redevelopment projects across Mumbai, with the Dharavi project serving as the key model for large-scale urban regeneration.
The announcement comes at a time when the Maharashtra Housing and Area Development Authority (MHADA) and the Slum Rehabilitation Authority (SRA) are running cluster development projects in old buildings and large clusters of slums.
Fadnavis said the government adopted the cluster redevelopment model to facilitate planned urban growth while preserving open spaces and improving civic infrastructure. The state has also set an ambitious target of building more than 7 lakh houses in the Mumbai Metropolitan Region by 2030 to meet the growing housing demand of the region.
Also read: Dharavi redevelopment: Maharashtra government officials appeal to residents to vacate Matunga Railway land before monsoon
The Dharavi Redevelopment Project has long been considered one of the most complex real estate and rehabilitation exercises in the country due to its dense population, mixed land ownership, thriving informal economy and complex social fabric. With the first phase now targeted to be completed within 18 months, the project is moving from planning stage to execution, making it one of the most-watched urban redevelopment initiatives in India, experts said.
All about Dharavi Redevelopment Project
Spread over approximately 600 acres in the heart of Mumbai, the Dharavi Redevelopment Project seeks to transform this sprawling settlement into a modern, integrated and transit-oriented urban neighbourhood. Apart from replacing dilapidated dwellings with formal housing, the project aims to provide residents with better civic infrastructure, wide roads, open spaces, health care and educational facilities while maintaining Dharavi’s unique social fabric and thriving informal economy.
Home to thousands of small-scale manufacturing units, leather workshops, pottery clusters, recycling businesses and home-based enterprises, Dharavi is an economic powerhouse that contributes significantly to Mumbai’s local economy. The redevelopment plan seeks to preserve and formalize these livelihoods by creating dedicated commercial and industrial space alongside residential development.
The project officially started in January 2025 and is being implemented in phases. Once completed, it will not only reshape Dharavi’s skyline but also redefine the future of inclusive urban redevelopment in India, balancing large-scale infrastructure upgrades with the challenge of rehabilitating one of the country’s most vibrant informal communities.
Adani Group emerged as the winning bidder for the project in November 2022, promising initial investment ₹5,069 crore to begin the long-awaited transformation of one of Asia’s largest slum clusters.
Also read: Dharavi redevelopment: 5 highlights of the master plan and ongoing survey
Adani Group’s SPV Navbharat Mega Developers Private Limited (NMDPL), a joint venture between the Government of Maharashtra and the Adani Group, is implementing the project. It is also known as ‘the world’s largest urban rejuvenation project’ and ‘the first step towards making Mumbai slum-free’.
NMDPL has a deadline of 7 years to construct the houses required for rehabilitation, while the government has set an overall deadline of 17 years to complete the complete redevelopment of Dharavi.
eligibility criteria
According to officials, around 1.25-1.5 lakh new houses will be built to rehabilitate around 10 lakh residents of Dharavi.
As per Maharashtra’s Slum Rehabilitation Act, every eligible resident of Dharavi will receive a rehabilitation unit, irrespective of the number of houses they own. These units will be of 350 sq ft, an upgrade from the 300 sq ft units provided in other slum redevelopment projects.
Also read: Dharavi project will follow Singapore and Hong Kong housing development model: Fadnavis
Residents deemed unfit for rehabilitation within Dharavi will be relocated to rental housing complexes outside the area under a hire-purchase arrangement.
For the rehabilitation of the underprivileged residents of Dharavi, the state has identified and allotted about 540 acres of land parcel within the Mumbai Metropolitan Region (MMR). These include land in Kurla to facilitate large-scale rehabilitation, salt-pan land in Kanjur, Bhandup and Mulund and parts of the Deonar dumping ground.
