How Maharashtra Election 2024 Results Are Going to Impact Future for Adani’s Dharavi Redevelopment Project

The recent sweeping victory of the Mahayuti alliance—comprising the ruling Bharatiya Janata Party (BJP) and Eknath Shinde’s faction of Shiv Sena—in Maharashtra has brought relief to the ambitious $3 billion Dharavi redevelopment project led by Gautam Adani's group. 

The project, which aims to transform Dharavi, Asia's largest slum, into a modern, world-class urban district, faced the possibility of cancellation if the opposition Shiv Sena (UBT), led by Uddhav Thackeray, had come to power.

During the campaign, Uddhav Thackeray’s Shiv Sena faction had promised to terminate the Dharavi project and reclaim the land awarded to Adani if they won the elections. They accused the Mahayuti coalition and BJP of favoring the Adani Group for financial gain. 

However, the election results, which gave BJP and its allies a commanding three-fourths majority in the Maharashtra Assembly, have dispelled these concerns, securing the project’s future.

Transforming Dharavi: A Massive Undertaking

Adani’s plan for Dharavi spans 620 acres—approximately three-fourths the size of New York’s Central Park. This densely populated slum is located near Mumbai’s international airport and is home to roughly a million people. Under the Adani Group’s redevelopment proposal, nearly 7 lakh residents currently living in substandard conditions with open drains and communal toilets will be offered free flats measuring up to 350 square feet. This transformation aims to elevate living standards and develop the area into a modern urban hub.

Rahul Gandhi has been vocal on the issue

The Dharavi redevelopment plan became a focal point in Maharashtra’s political discourse, with the opposition alleging that Adani had received preferential treatment from the state government in securing the project. Congress leader Rahul Gandhi has been vocal on the issue, repeatedly criticizing Prime Minister Narendra Modi and the BJP for allegedly favoring wealthy friends like Adani. These accusations gained traction, especially amid recent allegations of bribery involving Adani in a U.S. court, which intensified scrutiny on the group’s dealings in India.

Despite these allegations, the Adani Group has denied any undue influence or favoritism. Now, with the Mahayuti’s electoral success, the redevelopment project is likely to move forward without Opposition interference.

Mahayuti’s Support for a “Global Model” of Slum Redevelopment

The ruling alliance has defended the Dharavi project, portraying it as a visionary model for slum redevelopment that could set global standards. The project’s scope, however, does not extend to all of Dharavi’s residents. While about 7,00,000 residents qualify for new housing under this initiative, based on criteria such as residency before January 1, 2000, approximately 3,00,000 others will be resettled in different parts of Mumbai. This has led to some local dissent, as certain residents and business owners fear displacement and are calling for more inclusive provisions to avoid anyone being left homeless.

Project appears set to advance as planned

With the political landscape now favoring the Mahayuti alliance, the Dharavi redevelopment project appears set to advance as planned. For the Adani Group, this victory comes as a significant relief amid controversies and accusations, allowing them to focus on transforming Dharavi into a modern urban district and potentially setting a new precedent for large-scale redevelopment projects in India.