Dharavi Redevelopment Project: A Massive Makeover of the Land and Lives of the Residents

In 1985, the late Prime Minister Rajiv Gandhi sanctioned ₹100 crore to upgrade infrastructure and housing across Mumbai. One-third of this amount (approximately ₹33 crore) was specifically allocated for the redevelopment of Dharavi. Subsequently, the government launched the Prime Minister’s Grant Project (PMGP) in 1987 and designated MHADA as the Special Planning Authority for Dharavi. The project envisaged the construction of approximately 27 buildings to provide adequate housing for local families. Furthermore, following 1995, 86 distinct schemes were approved for Dharavi under the Slum Rehabilitation Scheme by 2004.

The Slum Rehabilitation Authority (SRA) was appointed as the Special Planning Authority for the Dharavi Redevelopment Project under the Maharashtra Regional and Town Planning Act, 1966. The state government published this notification in the Gazette on 9 March 2005.

‘Mashal,’ a non-governmental organization (NGO) commissioned by the Dharavi Rehabilitation Project and the Slum Rehabilitation Authority, conducted a biometric and socio-economic survey in 2007–08 using GIS technology. According to the Mashal survey, there were approximately 49,643 slum structures (39,208 residential and 10,435 commercial) in Dharavi at that time. Additionally, there were about 9,522 tenements (6,981 residential and 2,541 commercial) located in ‘chawls.’

On 21 May 2011, the responsibility for developing Sector 5 of the Dharavi Redevelopment Project was entrusted to MHADA, pursuant to the powers vested in the government under Section 3A of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. Accordingly, MHADA constructed 358 flats, each with a carpet area of ​​300 square feet on vacant plots and slum dwellers from that area were also rehabilitated in them. Construction of additional 672 flats was underway while building plans for another 687 flats received approval.

The Dharavi Redevelopment Project submitted a proposal to the Chief Minister via an official note, to request the Ministry of Railways to make 6.92 hectares of railway land available in and around Dharavi for this project. The Chief Minister has consented to this.

The State Cabinet approved the model of forming a special company for the Dharavi Redevelopment Project and also granted it ‘Special Project’ status. The structure of the company involves an 80% stake for the lead partner and a 20% stake for the government. Concessions such as stamp duty waivers, State GST refunds, property tax exemptions, and waivers on fungible premiums were approved under this initiative. Approval was also granted to create an integrated master plan encompassing Sectors 1 through 5 and to invite global tenders. Additionally, the inclusion of approximately 36.42 hectares (90 acres) and 6.91 hectares of railway land in Matunga-Dadar into the project was sanctioned. Special powers regarding slum clearance, transit camp arrangements, and the issuance of No-Objection Certificates (NOCs) were vested in the Chief Executive Officer.

Chief Minister Devendra Fadnavis discussed the need for railway land for the Dharavi redevelopment with Prime Minister Narendra Modi in New Delhi. While briefing the Prime Minister on various projects in Maharashtra including Dharavi, the Chief Minister requested immediate assistance from the Central Government.

Railways had asked for an advance payment of Rs 800 crore to provide its land. For this, the government has decided to provide a total of Rs 800 crore from MHADA, Rs 300 crore from Slum Rehabilitation Authority (SRA) and Rs 300 crore from Maharashtra Shelter Fund.

In view of the COVID crisis and the market slowdown, the terms and conditions of the tender were modified. Approval was granted to include approximately 45 acres of railway land in the project. The Cabinet also decided to revoke the government decision dated 15 September 2022 and reinstate the original government decision dated 5 November 2018.

The government issued a decision to implement the project through a newly revised global tender process, which includes terms for the transfer of railway land under a Special Purpose Company model.

It was announced that 59,566 families would be resettled through the Dharavi Redevelopment Project. Eligible residents of Dharavi would receive new premises with exemption of property tax for 5 years from the date of possession. It was also clarified that even if all criteria for eligibility are not met, a resident might still be allocated a new flat under this project, and religious sites would be preserved in accordance with regulations.

The Cabinet has approved the implementation of an affordable housing scheme for ineligible slum dwellers in Dharavi without evicting them. Directives have been issued to immediately complete the slum survey and determine the number of eligible and ineligible residents. This scheme will impose no financial burden on the state government; the entire responsibility will rest with the Special Purpose Vehicle (SPV).

While a total of 8.5 lakh families need to be rehabilitated under the Dharavi project and 5 lakh families to be resettled within Dharavi, additional land is required for the remaining 3.5 lakh families. To meet this requirement, approval has been granted to modify the terms for transferring 8.5 hectares of land belonging to the Dairy Development Department’s Mother’s Milk Bank in Kurla. This will allow for the redevelopment to take place in accordance with housing and urban development policies, ensuring the maximum number of homes for the residents.

A committee headed by retired Justice Dilip Bhosale submitted the first interim report of the Religious Structures Committee regarding the Dharavi Redevelopment Project to Chief Minister Devendra Fadnavis.

Under the Dharavi Redevelopment Project, all eligible Dharavi residents will be provided homes within Dharavi itself. However, housing arrangements for ineligible residents will be made at various sites across MMR.

Chief Minister Devendra Fadnavis stated in the Legislative Assembly that he will try his best to have Prime Minister Narendra Modi hand over the keys of 10,000 homes to beneficiaries within the next year and a half. Through the Dharavi redevelopment initiative, approximately 1.6 lakh residential, commercial, and industrial units will be rehabilitated. The Chief Minister also mentioned that the state is targeting the construction of 1.08 lakh flats to address housing demands and aging infrastructure across Maharashtra. And apart from the Dharavi Redevelopment Project, several initiatives such as self-redevelopment, group redevelopment, cluster development are being effectively implemented through MHADA. Self development schemes are helping citizens to build homes ranging from 1,200 to 1,400 square feet instead of the standard 600 square feet.