Maharashtra Transfers 118 Acres in Malad for Dharavi Rehabilitation Project

In a significant development for the long-pending Dharavi Redevelopment, the Maharashtra government has handed over 118 acres of land in Mumbai’s Malad-Malvani area to facilitate the rehabilitation of residents. The land parcel at Mukteshwar will play a crucial role in advancing the ambitious Dharavi Redevelopment plan aimed at transforming one of Asia’s largest informal settlements.

Officials confirmed that the land has been transferred to the Slum Rehabilitation Authority (SRA) for use under the ongoing Dharavi Redevelopment project. The move marks a major milestone in accelerating rehabilitation efforts for residents who cannot be accommodated within Dharavi itself.

Details of the 118-Acre Land Transfer

The 118-acre plot is part of a larger 140-acre allocation at Mukteshwar in Malad. While 118 acres have now been formally handed over, around 22 acres remain under litigation.

The land will remain under the ownership of the Slum Rehabilitation Authority. However, development rights have been granted to Navbharat Mega Developers Private Limited (NMDPL), the special-purpose vehicle executing the Dharavi Redevelopment.

The estimated value of the 118-acre parcel stands at approximately ₹540 crore. As part of the arrangement, NMDPL has paid ₹135 crore as a premium toward development rights. This structured model ensures that the state retains land ownership while enabling private-sector execution of the Dharavi Redevelopment.

Rehabilitation Plan: Who Will Benefit?

The Malad site will primarily accommodate residents who are not eligible for in-situ rehabilitation within Dharavi.

Under the Dharavi Redevelopment, eligible residents will receive a 350 sq. ft. rehabilitation unit an increase from the standard 300 sq. ft. provided in other slum projects. This enhanced size is aimed at improving living standards and ensuring better housing quality.

Residents who settled in Dharavi after January 1, 2011, and before November 15, 2022, along with upper-floor occupants, are expected to be relocated to this new site.

Additionally, as per Maharashtra’s Slum Rehabilitation Act, each eligible family will receive one housing unit regardless of multiple tenements owned. Those deemed ineligible within Dharavi will be shifted to rental housing complexes under a hire-purchase model.

Role of Adani Group in Dharavi Redevelopment

The Dharavi Redevelopment project is being implemented by NMDPL, a joint venture between the Maharashtra government and the Adani Group.

The Adani Group secured the project in November 2022, committing an initial investment of ₹5,069 crore to kickstart the transformation. The Dharavi Redevelopment is widely regarded as one of the world’s largest urban rejuvenation initiatives.

Under the agreed timelines:

• NMDPL has a 7-year deadline to complete rehabilitation housing.
• The broader Dharavi Redevelopment has an overall completion timeline of 17 years.

This phased approach is designed to balance large-scale construction with infrastructure and social integration.

Also Read: Maharashtra Sets Up Panel to Review TDR Relief for Flood-Affected Redevelopment Projects

540 Acres Identified Across MMR

The 118-acre Malad parcel is part of a much larger land strategy under the Dharavi Redevelopment.

The Maharashtra government has identified nearly 540 acres across the Mumbai Metropolitan Region (MMR) to support rehabilitation. These include:

• Land parcels in Kurla
• Salt pan lands in Kanjur, Bhandup and Mulund
• Portions of the Deonar dumping ground

Authorities estimate that approximately 1.25 to 1.5 lakh new homes will be constructed to rehabilitate nearly 10 lakh residents under the Dharavi Redevelopment initiative.

Impact on Mumbai’s Real Estate Landscape

The transfer of land signals renewed momentum in the Dharavi Redevelopment, which is expected to reshape Mumbai’s urban fabric.

Key expected impacts include:

• Creation of large-scale affordable housing stock
• Better utilisation of underdeveloped land parcels
• Improved infrastructure planning
• Formalisation of informal housing settlements

A portion of the Malad land will also be used for sale components in the open market, which could generate revenue to cross-subsidise rehabilitation costs within the Dharavi Redevelopment framework.

Urban planners view the project as a structural intervention that may redefine how slum redevelopment is executed in densely populated metros.

What the Dharavi Redevelopment Means for Mumbai

The latest land handover underscores the state government’s commitment to pushing forward the Dharavi Redevelopment after years of delays.

If implemented as planned, the project could:

• Improve living conditions for lakhs of families
• Unlock significant real estate value
• Reduce informal housing density
• Strengthen Mumbai’s long-term urban planning strategy

However, challenges such as litigation, climate resilience, financing and phased relocation remain critical to the overall success of the Dharavi Redevelopment.

Conclusion

The allocation of 118 acres in Malad marks a decisive step in advancing the Dharavi Redevelopment project. With land banks being secured and rehabilitation frameworks clarified, the groundwork for one of the largest urban transformation projects globally is steadily taking shape.

As construction timelines progress and further parcels are cleared, the Dharavi Redevelopment will remain central to Mumbai’s housing and infrastructure narrative in the years ahead.