Adani Group to Invest Around ₹1 Lakh Crore in Motilal Nagar Redevelopment, to Get 17 Lakh Sq M Sale Component: MHADA CEO Sanjeev Jaiswal

Mumbai is set to witness one of its largest urban transformation initiatives with the redevelopment of Motilal Nagar in Goregaon West, where the Adani Group is expected to invest nearly ₹1 lakh crore. The large-scale project, being implemented by the Maharashtra Housing and Area Development Authority (MHADA), marks a significant milestone in the city’s housing and infrastructure expansion efforts.

The redevelopment plan, unveiled recently, is being executed under the cluster redevelopment model, with MHADA as the planning and supervising authority. The initiative has received strong policy backing from Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde, reinforcing the state government’s focus on accelerating urban renewal and expanding housing supply in Mumbai.

MHADA CEO IAS Sanjeev Jaiswal stated that the Adani Group, appointed as the Construction and Development Agency (C&DA) for the project, will play a central role in executing the redevelopment across the 143-acre Motilal Nagar cluster. The scale of the investment places the project among the largest in the country, following major initiatives such as the Dharavi redevelopment.

One of India’s Largest Redevelopment Investments

Spread across 143 acres in Goregaon West, the Motilal Nagar redevelopment is expected to generate a total Floor Space Index (FSI) of around 28 lakh sq m. Of this, 17 lakh sq m will be allocated to the Adani Group as the sale component, while the remaining FSI will be distributed between rehabilitation and MHADA’s share.

The rehabilitation component for tenants will account for approximately 6.44 lakh sq m, while MHADA’s share is estimated at around 3.74 lakh sq m. This structured allocation ensures a balance between commercial viability and social responsibility, with a strong emphasis on rehabilitating existing residents.

"For the sake of calculation, say around 10.5 lakh sq meters goes to rehab and MHADA and 17 lakh sq meters with the developer (Adani Group). The catch is that this is the total FSI that is entitled, and consumption will depend on how the project shapes up in the coming years. It is difficult to say the exact figure out of the total entitled FSI, how much the developer will be able to consume in the next 10 to 15 years," Jaiswal said.

Rehabilitation Deadline and Market-Linked Development

A key focus of the project remains the timely rehabilitation of existing residents. The plan aims to rehabilitate approximately 5,000 original tenements, including residential, commercial, and slum units, within the next seven years, with slight flexibility in timelines if required.

According to Jaiswal, the extent of supply entering the market will depend on prevailing market conditions. He said the target is to rehabilitate the 5,000 original tenements in Motilal Nagar, including residential, commercial, and slum units within the next seven years, though the timeline may be extended marginally if required.

Investment Structure and Long-Term Outlook

The financial scale of the project reflects both immediate infrastructure needs and long-term development potential. According to estimates, the investment required for rehabilitation, MHADA’s share, and associated infrastructure stands at around ₹36,000 crore. However, when the sale component is included, the total investment over the project lifecycle, spanning 10 to 15 years or more, is expected to reach approximately ₹1 lakh crore.

This phased investment approach aligns with the project’s long-term execution strategy, where development and monetisation will be closely linked to market dynamics.

Mixed-Use Development and Monetisation Potential

The sale component of the project is expected to be developed as a mixed-use ecosystem, including residential, commercial, educational, hospitality, and retail segments. According to sources, the prevailing market rate in the area is around ₹30,000 per sq ft, with residential development offering the strongest monetisation potential.

This integrated development model is expected to enhance the overall viability of the project while contributing to Mumbai’s evolving urban landscape.

Expanding the Redevelopment Pipeline

Beyond Motilal Nagar, MHADA is preparing for a significant expansion of cluster redevelopment projects across Mumbai. According to Jaiswal, nearly 923 acres of land will be opened up for redevelopment through upcoming projects, excluding major initiatives like BDD redevelopment and Aram Nagar.

"923 acres will be opened up for cluster redevelopment in Mumbai, minus the BDD redevelopment project, which is again 100 acres plus, minus the Aram Nagar cluster redevelopment project, which is another 20 to 30 acres or whatever, and other layouts which have been approved. This is going for redevelopment and only for these 11 projects, the total rehab of the tenements, which will be done in the next five to seven or eight years, is going to be 75,445," Jaiswal said.

The scale of this pipeline indicates a transformative phase for Mumbai’s housing sector, with thousands of families expected to benefit from structured redevelopment.

A New Benchmark for Urban Transformation

Officials believe that the scale and execution model of the Motilal Nagar redevelopment could set a new benchmark not only for Mumbai but for urban redevelopment projects across India. With a combination of large-scale investment, structured planning, and strong regulatory oversight, the project reflects a comprehensive approach to addressing housing shortages while modernising urban infrastructure.

As Mumbai continues to expand, initiatives like Motilal Nagar highlight the growing role of public-private partnerships in delivering sustainable and inclusive development. With a clear focus on rehabilitation, infrastructure, and long-term growth, the project represents a significant step toward reshaping the city’s future.