Motilal Nagar redevelopment project to require ₹1 lakh crore investment
MHADA Unveils ₹1 Lakh Crore Motilal Nagar Master Plan
The Maharashtra Housing and Area Development Authority (MHADA) on April 17 released a master plan for project spanning 143 acres. Adani Group is expected to invest as much as Rs 1 lakh crore to redevelop Motilal Nagar in Mumbai's Goregaon West, with Adani Realty emerging as the successful bidder and executing the project under the construction and development agency model.
Spread across 143 acres, the project ranks as the second-largest urban renewal initiative in the country after the Dharavi redevelopment. The redevelopment, overseen by Maharashtra Housing and Area Development Authority, covers Motilal Nagar phases 1, 2 and 3, with the area originally developed in the 1960s having faced infrastructure stress, with redevelopment plans pending for nearly 2 decades.
Project Scale and Timeline
The overall investment for the project will touch Rs 1 lakh crore over a 10–15-year period. The rehabilitation phase is anticipated to be finished within the coming seven years. The Motilal Nagar Redevelopment Project is expected to generate around 28 lakh square metres of built-up area.
Rehabilitation and Housing Provisions
As per the updated master plan, 3,702 eligible residents will be provided complimentary rehabilitation flats with a carpet area of 1,600 sq ft each, while 328 qualified commercial occupants will be allotted units of 987 sq ft. Additionally, about 1,600 slum dwellers will be resettled in homes measuring 300 sq ft. The overall number of residents on the piece of land will go up to around 25,000 families from the present 5,000.
Development Structure and Allocation
Around 6 lakh square metres will be used for rehabilitation, approximately 4 lakh square metres will be handed over to MHADA, and nearly 1.89 million square metres will be allocated to Adani Properties as part of the development arrangement. Estatevue Developers, a construction and development company owned by the Adani Group, will receive a free-sale allocation of 17 lakh square metres (1.82 crore square feet), which it can sell on the open market.
Mixed-Use Township and Infrastructure
The master plan envisions a mixed-use township integrating residential, commercial and social infrastructure, with about 15 acres earmarked for open and green spaces, along with facilities such as schools, healthcare centres, markets and community infrastructure. The redevelopment is designed around a "15-minute city" concept, ensuring that essential services such as schools, healthcare facilities, markets, and recreational spaces are accessible within a short radius, and the master plan includes around 15 acres of green zones.
Key infrastructure upgrades will include multi-level parking, sewage treatment systems, rainwater harvesting, solar energy integration and enhanced fire safety measures.
The Construction and Development Agency Model
The project will be executed under the Construction and Development Agency (C&DA) model, with MHADA retaining ownership and oversight. The Adani Group's selection as the lead agency follows a rigorous tendering process. This model represents a departure from traditional redevelopment frameworks, keeping state ownership of the land while delegating execution to the developer.
Adani Group's Urban Redevelopment Portfolio
The Motilal Nagar project adds to Adani Group's significant presence in Mumbai's large-scale redevelopment. The Adani Group is also involved in the redevelopment of Mumbai's Dharavi, which is India's biggest slum. Both Adani and Reliance are competing for a new set of MHADA-led cluster redevelopment projects spread across 74 acres in Andheri West, with Reliance's 4IR Realty Development, Adani and Hanware Realty placing bids for the SVP Nagar redevelopment project in Andheri West in May.