Dharavi redevelopment: 'Businesses rehabilitated to get SGST refund for 5 years,' says DRPPL

The JV between Adani Group and Maharashtra government on January 1 announced that it was partnering with renowned architect Hafeez Contractor for its ambitious Dharavi project, which involves redevelopment and rehabilitation of nearly 1 million residents in one of Asia’s largest slum clusters.

Dharavi Redevelopment Project Pvt Ltd (DRPPL), a joint venture between the Government of Maharashtra and the Adani Group, on February 26 said that eligible industrial and commercial units in redeveloped as part of Dharavi redevelopment project will enjoy benefits, such as a refund of State Goods and Services Tax (SGST).

This in order to boost and help formalise local businesses. This is as per the tender conditions, the JV said.

As per the tender conditions, SGST for industrial and commercial units will be reimbursed by the state government’s Finance Department through the DRP/SRA for five years from the date of issuance of the OC. Eligible industrial and commercial units will have to provide SGST payment details as proof while claiming the refund.

“Redevelopment will transform the informal nature of businesses in Dharavi and enable them to be a part of the India growth story. To support this transition, the state government has offered tax benefits, like the reimbursement of SGST.  It will make the businesses more competitive and give them manifold growth opportunities,” said a DRPPL spokesperson.

The tax rebate will come into effect after the newly constructed buildings receive the occupation certificate (OC).

Dharavi encompasses several thousand industrial and commercial units manufacturing garment and leather items. Many are vendors for large national and international brands sold across the world, with turnover estimated to be in millions of dollars. They are keen to formalise their businesses to expand and get a fillip, both locally and globally, the spokesperson added.

Also read: Dharavi redevelopment: Survey to determine number of slumdwellers eligible for rehabilitation

Survey of slum dwellers

The JV between Adani Group and Maharashtra government is currently under process to conduct survey of eligible slum dwellers of Dharavi.

The DRPPL had on January 1 announced that it was partnering with renowned architect Hafeez Contractor for its ambitious Dharavi project, which involves redevelopment and rehabilitation of nearly 1 million residents in one of Asia’s largest slum clusters.

Also read: Meet architect Hafeez Contractor who has partnered with Adani Group for Dharavi redevelopment project

Project timeline
The timeline for rehabilitation of eligible slum dwellers is seven years and it is expected that the entire project will take 17 years to turn into a reality. In November 2022, Adani Group was declared the winner of the Dharavi redevelopment project. The Group had won the bid by promising an initial investment of Rs 5,069 crore for the over Rs 20,000-crore project.

Dharavi came into the spotlight as one of the locations where the Oscar-winning film Slumdog Millionaire was shot. Overall, the Dharavi revamp will have a timeline of 17 years, of which seven years will be for the construction of homes under the rehab component.