Mumbai: Adani Group Chairman Gautam Adani, the richest Indian, will receive approximately 17 lakh square meters of area for sale in Motilal Nagar, in which the Adani group plans to invest Rs 1 lakh crore to redevelop the suburban Goregaon.
The news agency PTI reported that the Motilal Nagar Redevelopment Project, spread over 143 acres, can create 28 lakh sq metres of space, of which over 10.5 lakh sq metres will have to be given to the original tenements and the Maharashtra Housing and Area Development Authority (MHADA), the body's vice president and chief executive, Sanjeev Jaiswal said.
Estatevue Developers, part of the Adani Group, is set to gain a free-sale area of close to 17 lakh square metres, or about 1.82 crore square feet, which they can sell off in the market.
Jaiswal mentioned that the project's total investment could hit about ₹1 lakh crore, spanning a timeframe of 10 to 15 years. PTI quoted Jaiswal, who mentioned that this could be among the most significant redevelopment investments in the city.
Last year, the Adani Group emerged as the highest bidder for the Motilal Nagar redevelopment project, the first to be undertaken under the Compensation Discussion and Analysis (CD&A) model, while also executing the Dharavi redevelopment project.
According to sources, the prevailing rate in the area is around ₹30,000 per sq ft, with residential development offering the most promising monetisation potential.
PTI further reported that an official associated with the group's real estate arm said the project is planned as a mixed-use development. Besides residential components, the project may also include commercial, educational, and hospitality spaces, though the exact distribution is yet to be finalised.
Jaiswal said the CD&A framework mandates the rehabilitation of nearly 5,000 original tenements, including residential, commercial, and slum units, within seven years, though slight extensions may be possible. PTI quoted Jaiswal as stating that rehabilitation of existing residents remains the top priority.
He further said that while the developer can build and sell the free-sale component at its discretion, ownership of the land will continue to remain with the Maharashtra Housing and Area Development Authority. He added that the developer cannot raise finance or transfer development rights without prior approval from MHADA.
Jaiswal also said that, similar to Motilal Nagar, MHADA plans to award 11 more redevelopment projects across Mumbai over the next year through the CD&A route. These projects, spread over 923 acres, are expected to significantly transform the city's skyline.
Through these developments, a total of 75,445 tenements will be rehabilitated, covering areas such as Kamathipura, Adarsh Nagar in Worli, Abhyudaya Nagar, and Bandra Reclamation.
Under the Motilal Nagar redevelopment plan, each residential beneficiary will receive 1,600 sq ft of space, while commercial unit holders will be allotted 957 sq ft.
Jaiswal further noted that the number of resident families in the area is expected to increase from the current 5,000 to nearly 25,000 following redevelopment.
He also emphasised the need to revisit the existing slum rehabilitation framework, particularly the in-situ model, in view of the scale of upcoming projects. PTI quoted Jaiswal as saying that large-scale redevelopment efforts, including CD&A projects and slum redevelopments like Dharavi, will increase housing supply and highlight the need to improve rental housing viability, especially as rental yields currently remain low at around 2 per cent.