Impact of Dharavi Redevelopment on Small Businesses and Livelihoods
The Dharavi Redevelopment Plan (DRP), spearheaded by Adani, is set to transform one of Asia's largest slums. However, the project raises significant concerns about the future of small businesses and the livelihoods of thousands of workers.
DharaviRedevelopmentSmall BusinessesLivelihoodsAdaniReal Estate MumbaiMay 20, 2025
There is a diverse range of occupations in Dharavi, from garments and apparel to leather goods manufacturing, waste recycling, pottery, and snack making. The area also houses large godowns of raw materials and finished products, such as mats, leather, pottery, snacks, and unstitched cloth. Additionally, Dharavi comprises substantial residential units, both owned and rented.
The latest Dharavi Redevelopment Plan (DRP) is being carried out by Adani under its real estate arm, Adani Realities. The project is a joint venture between Adani and the Maharashtra government, following the Slum Redevelopment Scheme of the city’s Slum Rehabilitation Authority (SRA) as per section 33 (10) under the Development Control Regulation.
Rehabilitation initiatives for slums, not only Dharavi, have been ongoing since independence. These efforts have often been repressive, involving massive evictions and police intervention. In the early 1970s, a slum area improvement programme provided basic amenities to Dharavi’s residents. However, the project remains incomplete. The phase of liberalisation saw market-driven solutions for welfare, with the SRA implementing the Slum Rehabilitation Scheme. By 2004, 86 schemes had been approved in Dharavi, but many failed due to the presence of commercial and industrial units.
In 2004, the government approved the Dharavi Redevelopment Project (DRP), which faced resistance due to the lack of community participation. The original DRP was a residential-focused plan, intended to rehouse eligible property owners in 300 square feet of space in seven-storey tower blocks. Developers received land use incentives, such as additional Floor Area Ratio (FAR) and transfer of development rights (TDRs), to offset the cost of rehousing residents.
In 2018, a UAE-based company, Seclink Technologies Corporation, won the contract for the project. However, the contract was later cancelled due to significant alterations. In December 2022, Adani secured the project, sparking criticism over alleged government favouritism. Despite these concerns, the project is moving forward. A door-to-door survey has documented around 69,000 units, and nearly 1 lakh have been numbered. The real challenge lies in determining eligibility, categorising different housing typologies, and assessing the complex economic fabric of areas like Kumbharwada, Koliwada, and the 13th Compound.
Dharavi is a hub of small-scale manufacturing and industrial units, generating approximately $1 billion per year. Tens of thousands of workers are employed in these units, many of whom are migrants from various states. The current plan is silent on the rehabilitation of these workers, which will impact their families and the broader community. Home-based activities, such as papad-making, bidi-making, and leather goods, are also prevalent. Past experiences show that moving these units disrupts their linkages with parent manufacturers, making it difficult for home-based work to revive.
The government’s proposal to rehabilitate ‘non-eligible’ tenements in areas like the Deonar landfill, salt pan lands in Wadala and Kanjurmarg, and the Kurla Dairy plot is particularly alarming. Deonar, an active landfill site, is unfit for human habitation, and relocating people there is a violation of human rights.
The urgency to develop Dharavi is linked to the nearby Bandra Kurla Complex (BKC), one of the most expensive pieces of real estate in Mumbai. BKC has become a hub for corporate and international businesses, but it is running out of land. Redeveloping Dharavi will provide additional land for new offices and luxury towers. However, the current residents, who have lived there for generations, will be given modest properties or shifted to distant locations.
While the proposed plan addresses the needs of Dharavi’s residents on paper, it will disrupt the complex ecosystem of residences, rentals, commercial, and industrial units. It will impact occupations like garment manufacturing, leather goods, waste recycling, fishing, and home-based work. The redevelopment will lead to job losses for men and women, affecting not only the migrant workers in Dharavi but also their families back in their native states.
Frequently Asked Questions
What is the Dharavi Redevelopment Plan (DRP)?
The Dharavi Redevelopment Plan (DRP) is a project aimed at transforming Dharavi, one of Asia's largest slums, into a modern residential and commercial area. It is being carried out by Adani under its real estate arm, Adani Realities, in a joint venture with the Maharashtra government.
Why is the DRP controversial?
The DRP is controversial because it raises concerns about the displacement of residents and the disruption of small businesses and informal economies in Dharavi. Critics argue that the plan lacks community participation and does not adequately address the needs of the people who will be affected.
What are the main economic activities in Dharavi?
Dharavi is known for its diverse economic activities, including garment manufacturing, leather goods, waste recycling, pottery, snack making, and home-based work like papad-making and bidi-making. These activities generate significant income and provide employment for tens of thousands of workers.
How will the DRP impact the residents of Dharavi?
The DRP will impact residents by relocating them to new housing units or distant locations. It will also disrupt their livelihoods, particularly those in small-scale manufacturing and home-based work, leading to potential job losses and economic instability.
What are the proposed relocation sites for Dharavi residents?
The government has proposed relocating ‘non-eligible’ tenements to areas like the Deonar landfill, salt pan lands in Wadala and Kanjurmarg, and the Kurla Dairy plot. These areas are often unfit for human habitation, raising serious concerns about the well-being of the relocated residents.
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