Adani Group plans self-financing for Dharavi slum redevelopment

The Adani Group, spearheading the redevelopment of Dharavi slums in Mumbai, aims to fund the entire project through internal accruals and potential equity sales in the special purpose vehicle (SPV) dedicated to the initiative.

In January 2024, the conglomerate appointed three firms, including renowned architect Hafeez Contractor, as city planners tasked with presenting a draft development plan for Asia’s largest slum cluster.

In a released statement, the group, committing to a substantial Rs. 21,000 crore investment, disclosed collaborations with design firm Sasaki and consultancy firm Buro Happold, along with experts from the Singapore Housing Development Board. However, the statement lacked specifics on the project timeline.

Having secured the bid for Dharavi’s redevelopment in November 2022 with an initial equity injection of Rs. 5,069 crore, the Adani group is leveraging the expertise of Hafeez Contractor, known for transformative social housing and slum rehabilitation projects. Additionally, it has enlisted Sasaki, a U.S.-based interdisciplinary design firm, and Buro Happold, an English consultancy known for its innovative infrastructure solutions.

Addressing reports about potential financial closure, a source clarified that the tender conditions strictly prohibit raising debt for the project. The group intends to utilize internal funds and explore alternative financial instruments. However, the company has not reached a stage requiring market funding.

Sources further reveal the group’s vision for the project is human-centric, aiming to support Dharavi’s thriving businesses and entrepreneurs. To safeguard residents’ livelihoods and enhance skills, a skill development center will be established, with a specific focus on women and youth, fostering a better life for all citizens in the area.