Dharavi Redevelopment Project, a joint venture between Maharashtra government and Adani Group, will refund state goods and services tax (SGST) for five years to industrial and commercial units setting up businesses in the area.
This and other benefits, which would be provided as per the tender conditions, aim to boost the local economy, the company said in a statement.
Redevelopment will transform the informal nature of businesses in Dharavi, the company said. To support this transition, the state government has offered tax benefits. This will provide existing and new businesses in Dharavi a “robust footing and boost their profitability”, it said.
The tax rebate will come into effect after the newly constructed buildings receive the occupation certificates. SGST for industrial and commercial units will be reimbursed by the state government’s finance department through the Dharavi Redevelopment Project or the Slum Rehabilitation Authority for five years from the date of issuance of the OC.
Dharavi encompasses several thousand industrial and commercial units manufacturing garment and leather items. Many are vendors for large national and international brands with turnover estimated to be in millions of dollars.
In November 2022, Adani Group was declared the winner of the Dharavi redevelopment project. It has earmarked an initial investment of Rs 5,069 crore for the over Rs 20,000-crore project. A 259-hectare area will be redeveloped in phases over seven years, while the timeline for complete revamp of Dharavi would be 17 years.
The people living in Dharavi till January 1, 2000, will get 17% larger houses at no cost.
The DRPPL had on January 1 announced that it was partnering with architect Hafeez Contractor for the Dharavi project, which involves redevelopment and rehabilitation of nearly 1 million residents in one of Asia’s largest slum clusters.