Adani Group will invest nearly ₹1 lakh crore in the redevelopment of the Motilal Nagar cluster in Goregaon, Mumbai, spread over 143 acres, Maharashtra Housing and Area Development Authority (MHADA) CEO Sanjeev Jaiswal said on April 17.
This marks one of the country’s largest urban renewal investments after the Dharavi redevelopment project. The Goregaon West project will include a significant rehabilitation component along with a free-sale area, with MHADA overseeing development under the cluster redevelopment model.
The project is expected to generate a total Floor Space Index (FSI) of around 28 lakh sq m, of which 17 lakh sq m will be allocated to the Adani Group, the construction and development agency (C&DA) for the project. The remaining FSI will be distributed between MHADA and the rehabilitation of tenants in Motilal Nagar.
Speaking on the sidelines of unveiling the master plan for the 143-acre cluster redevelopment, Jaiswal said that the rehabilitation component for tenants will account for 6.44 lakh sq m, while MHADA’s share will be about 3.74 lakh sq m.
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“For the sake of calculation, say around 10.5 lakh sq mtrs goes to rehab and MHADA and 17 lakh sq mtrs 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.
According to Jaiswal, what comes to the market will depend on market conditions. “The deadline of rehabilitating the 5,000 original tenements of the Motilal Nagar redevelopment project, consisting of residential, commercial and slum units, in the next seven years, but added that the same deadline can get pushed marginally,” Jaiswal said.
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.
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Total investment for the project is estimated at around ₹1 lakh crore
According to Jaiswal, the investment figure for rehab, MHADA share, and amenities or infrastructure itself is around ₹36,000 crore, but if you add the sale area, the total investment from the start to the end of the project, over 10-15 years or even more, could be somewhere around ₹1 lakh crore.
According to Jaiswal, the investment for rehabilitation, MHADA’s share, and related amenities and infrastructure is estimated at around ₹36,000 crore. However, including the sale component, the total investment over the project lifecycle, spanning 10–15 years or more, could be somewhere around ₹1 lakh crore.
In 2025, the Adani Group, which is also executing the Dharavi redevelopment project, emerged as the winning bidder for the Motilal Nagar redevelopment.
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According to Adani Group sources, the current per sq ft rate is around ₹30,000, with the residential segment offering the strongest monetisation opportunity. The sale component is expected to be a mixed-use development comprising commercial, educational, hospitality, and retail uses.
As much as 923 acres of land will be unlocked for the Mumbai real estate market through cluster redevelopment
Speaking about , Jaiswal said that in the coming year, 923 acres of cluster redevelopment projects will be tendered or approved.
“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 is going to be 75,445,” Jaiswal said.
According to Jaiswal, this scale and model of rehabilitation would be a first for MHADA, possibly unprecedented in Mumbai and even across the country.