Mumbai Dharavi Project Promises Secure Housing Transition

Mumbai’s long-awaited Dharavi redevelopment initiative is moving towards a formal launch, with the Maharashtra government preparing to seek central support for the project’s foundation phase. The proposed transformation of one of the world’s most densely populated informal settlements is being positioned as a defining test of India’s approach to inclusive urban regeneration, balancing housing security, economic continuity and large-scale infrastructure delivery.

State officials confirmed that the government intends to request the Prime Minister to inaugurate the redevelopment programme, signalling political backing for a project that has significant social, financial and urban planning implications. The initiative aims to reorganise nearly 259 hectares of land into a planned township with upgraded housing, services and economic infrastructure, while ensuring that eligible residents are provided formal homes as part of rehabilitation. According to the approved framework, households established in Dharavi before January 2000 qualify for free 350 sq ft apartments within the redevelopment area. Residents who settled between 2000 and 2011 may be offered smaller homes at alternate locations, subject to documentation and eligibility checks. Officials involved in the planning process say the objective is to address long-standing housing insecurity while decongesting unsafe living conditions and improving access to sanitation, mobility and public services.

The master plan outlines construction of over 58,000 residential units alongside approximately 13,000 commercial and industrial spaces. Urban planners note that retaining economic activity within or near Dharavi is critical, given the area’s role as a major hub for informal manufacturing, recycling and small-scale enterprises. Surveys covering more than 85,000 structures have already been conducted, forming the basis for rehabilitation phasing and eligibility assessments. The project is being implemented through a public–private partnership structure, with a special purpose vehicle responsible for financing, design and execution. The private partner holds a majority stake, while the state government remains a shareholder, reflecting a shared-risk model increasingly used for complex urban redevelopment projects. The core rehabilitation cost is estimated at close to ₹1 lakh crore, though the broader economic footprint, including commercial development and supporting infrastructure, is expected to be substantially higher over the project lifecycle.

Despite official assurances, concerns persist among sections of residents and political groups regarding transparency, relocation timelines and long-term affordability. Urban policy experts emphasise that sustained community engagement and clear communication will be essential to prevent displacement risks and ensure social stability during phased construction, which is currently targeted for completion around 2032. If executed effectively, the Dharavi redevelopment could set a national benchmark for climate-resilient, mixed-use urban renewal, integrating formal housing with livelihoods, transit connectivity and sustainable infrastructure. The coming months will be critical in determining whether the project can translate its scale and ambition into equitable outcomes for Mumbai’s most vulnerable urban communities.

Mumbai Dharavi Project Promises Secure Housing Transition