The original, produced by Gul Anand and directed by Sai Paranjpye, revolved around three students living in Delhi - Siddharth (Farooque Sheikh), Omi (Rakesh Bedi) and Jai (Ravi Baswani) - and what happens when they meet Neha (Deepti Naval).
Dhawan said his film carries the same soul as the original, but with some obvious changes.
"As far the story is concerned, it has the soul, but that film was made 30 years ago. It was very good that time and I have tried that it should be good even now. It is according to today's youth," he said.
On the same day, Rise Of The Zombie co-directed by Devaki Singh and Luke Kenny, is coming out.
Featuring Luke as well as Kirti Kulhari, Ashwin Mushran and Benjamin Gilani, the film revolves around Neil Parker, a passionate wildlife photographer who pays more attention to his wildlife than his human life.
As a result, his relationships with the real world suffers. When his girlfriend walks out on him, he resigns himself to isolation and nature.
The story follows his journey into a darkness that has to be seen to be believed.
Made on a shoestring budget of Rs.4 crore, Rise Of The Zombie is about transformation and origin of a Zombie. The complex past story that turns into a contemporary psychological horror with Zombie mayhem will keep the audience on the edge of their seats.
Keeping the story simple was a challenge for the team, says Luke.
"The film is a beginning of a story. It is the first part of a long story. It is part one of a zombie trilogy, which is going to be coming out in the years to come," he said.
"Every story should begin in a simple way and that is what we have tried. That has been the most exciting challenge - to keep it simple," he added.