On Saturday, India’s Adani Group, led by billionaire Gautam Adani, received final approval to commence the redevelopment of Dharavi, one of Asia’s largest slums located in the heart of Mumbai, Bloomberg reports.
What Happened: The Mumbai Metropolitan Region Development Authority, which oversees the project, confirmed that the Maharashtra state government has given the green light.
Adani won the project with a bid of 50.7 billion INR ($620 million) late last year.
The slum, spread over roughly 620 acres of potentially prime real estate in the financial capital, is home to more than 20 million people and neighbors the Bandra Kurla Complex, an upmarket district of shopping malls, embassies, and banks.
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Despite the challenges of acquiring large tracts of land, attracting investors to a place without stable utilities, and resettling an estimated 1 million people, Adani’s plans for Dharavi may transform the slum into modern apartments, offices, and malls.
However, his involvement has been met with protests from local inhabitants, who fear that homes and businesses will be relocated far from the city center. Others are concerned they’ll be moved into tiny apartments with poor amenities.
Why It Matters: The redevelopment of Dharavi represents a significant step in urban renewal for Mumbai. However, the project has raised concerns about the displacement of current residents and the potential gentrification of the area.
Adani’s ability to find the estimated $3 billion needed for the project has also been questioned, especially in light of the recent investigation by U.S. authorities into the representations made by Adani Group to its American investors.
Despite these challenges, the project could extend Adani’s foothold in India’s financial capital, where he already runs one of the country’s busiest airports.
Read Next: Reliance, Adani, Total Gas May Spend Up To ₹5,000 Cr On Biogas Plants
Photo by Adnan Saifee on Unsplash.
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