MUMBAI: Gautam Adani, India’s wealthiest individual, is set to receive approximately 17 lakh square meters of land for sale in Motilal Nagar. His group plans to invest ₹1 lakh crore to carry out a redevelopment project in suburban Goregaon, according to a senior government official.
The Motilal Nagar Redevelopment Project, spanning 143 acres, has the potential to develop 28 lakh square meters of space. Out of this, more than 10.5 lakh square meters will be allocated to original tenants and the Maharashtra Housing and Area Development Authority (MHADA), as stated by the body’s vice president and chief executive, Sanjeev Jaiswal.
estatevue Developers, a firm owned by the Adani Group, will be granted a free sale area of 17 lakh square meters (1.82 crore square feet) that can be sold in the open market, according to Jaiswal.
When inquired about the overall investment for the project, Jaiswal mentioned that it is expected to reach ₹1 lakh crore over a period of 10 to 15 years.
Last year, the Adani Group won the bid for the Motilal Nagar redevelopment, part of the first project under the Compensation Discussion and Analysis (CDA) model.
A knowledgeable source indicated that the current market rate in the area is ₹30,000 per square foot, with the residential sector presenting significant monetization opportunities.
An official involved in Adani’s real estate ventures noted that the project is intended to be mixed-use, though specific allocations have not yet been determined. Aside from residential spaces, options for commercial, educational, and hospitality sectors are being considered.
Jaiswal emphasized that the CDA aims to rehabilitate the 5,000 original tenements, including residential, commercial, and slum units, within the next seven years, though this timeline may be slightly extended.
The main focus of the cluster redevelopment project is the original residents, with MHADA also planning a public meeting with them later this evening.
While the CDA has the flexibility to develop the free sale area as needed, Jaiswal clarified that land ownership will remain with MHADA.
He added that the CDA cannot secure financing or transfer development rights without MHADA’s consent.
Similar to Motilal Nagar, 11 additional projects across the financial capital are set to be awarded by MHADA in the upcoming year utilizing the CDA framework, according to Jaiswal.
These 11 projects encompass 923 acres and are expected to significantly transform Mumbai’s skyline, marking development rates not previously observed in the city.
Approximately 75,445 tenements will be rehabilitated through these initiatives, targeting areas such as Kamathipura, Adarsh Nagar in Worli, Abhyudaya Nagar, and Bandra Reclamation.
Each residential tenement holder in Motilal Nagar will receive 1,600 square feet of new space, while commercial unit holders will be granted 957 square feet as part of the redevelopment.
The resident population on the site is projected to increase from 5,000 to about 25,000 families, Jaiswal stated.
He also mentioned the necessity of reevaluating current slum rehabilitation strategies, which typically resettle original dwellers on-site.
Jaiswal articulated that extensive redevelopment projects, including CDA initiatives and slum redevelopments like Dharavi, will augment available space in the city, necessitating measures to enhance the viability of rental housing.
He stressed the importance of raising rental yields, which currently languish at low levels of 2 percent.
