MUMBAI — In a major legislative update regarding India’s largest urban rejuvenation project, Maharashtra Chief Minister Devendra Fadnavis announced that the first phase of the Dharavi Redevelopment Project is slated for completion within the next 18 months. The initial phase will deliver approximately 10,000 rehabilitation homes, marking a critical transition from planning to execution for Mumbai’s most densely populated informal settlement.

Speaking to the state legislative assembly, Fadnavis emphasized that the state does not view the overhaul as a mere housing scheme. Instead, it is being positioned as a sweeping “economic transformation initiative” designed to integrate housing, commercial markets, and massive employment generation.

Key Highlights of the Rehabilitation Plan

The project, which officially commenced in January 2025, covers an expansive 95 million square feet of planned development. The state has laid down a clear strategy to ensure that residents are not displaced to far-flung pockets of the city.

• Eligible Residents: All residents deemed eligible under primary guidelines will receive a 350-square-foot home directly within Dharavi. This is a notable space upgrade from standard 300-square-foot units traditionally built under other city slum rehabilitation schemes.
• Extended 2011 Criteria: Residents qualifying under the extended 2011 eligibility rules will also be accommodated inside the redeveloped zone upon paying a prescribed charge of ₹2.5 lakh.
• Ineligible Residents: For those who do not match the eligibility criteria, the government has promised they will be relocated to designated housing at nearby locations rather than being pushed away from the area.

Preserving Dharavi’s Informal Economy

Dharavi is globally recognized not just as a residential cluster, but as a thriving hub of small-scale industries—including pottery, leatherwork, and textiles. A key focus of the ongoing redevelopment model is to bring these informal economic activities seamlessly into the formal sector without erasing the area’s unique social fabric.

To protect local businesses during the transition, Fadnavis announced that all commercial units inside the redeveloped area will be granted a five-year Goods and Services Tax (GST) exemption.

Flagship of a Larger Urban Renewal Roadmap

The state has identified Dharavi as the flagship initiative for 19 total “cluster redevelopment projects” planned across Mumbai. The objective of this cluster-based approach is to enable massive infrastructure updates—such as wider roads, civic amenities, and open spaces—without the haphazard growth that traditionally plagues dense urban areas.

With the 18-month clock officially ticking on Phase 1, state officials revealed that Prime Minister Narendra Modi is expected to personally hand over the keys to the first 10,000 homeowners upon completion.