Maharashtra election results set stage for Dharavi redevelopment

The decisive victory of the BJP-led Mahayuti alliance in the Maharashtra assembly elections is expected to speed up the redevelopment of Asia's largest slum Dharavi. The ambitious ₹20,000-crore urban renewal project, covering nearly 600 acres in the heart of Mumbai, was at stake as opposition parties had pledged to scrap or revise it if they won the elections.

In November 2022, Adani Properties, the realty development company owned by Gautam Adani-led Adani Group, had emerged as the highest bidder to secure the rights to redevelop the slum.

An Adani Group entity holds 80% stake in the Dharavi Redevelopment Project Pvt Ltd (DRPPL), while the Maharashtra government holds the balance 20%.


The state holds this 20% stake in the project through DRP/Slum Rehabilitation Authority (SRA), which is a special body formed by the government.

"This is a critical project for the government and we are on track to execute the project and deliver home for everyone in Dharavi," a DRP-SRA official told ET.

With the outcome of the state assembly elections, the future of the project combining modern urban planning with social upliftment in Mumbai's heartland appears more secure. The recent indictment of Adani Group chairman Gautam Adani and other group officials in the US could potentially affect the group's fundraising efforts. However, the hardcore underlying asset of land associated with this project may cushion the impact.

The election results ensure continuity in governance, reducing the risk of policy reversal or administrative delays that often stall large-scale projects.

Opposition parties, including the Maha Vikas Aghadi (MVA), had earlier expressed reservations about the project owing to land allotment and other issues.

The project has seen the allocation of additional land in various parts of Mumbai by the government to support the massive rehabilitation and redevelopment efforts.