Slum authority in Mumbai directed to give Rs 300 crore for Dharavi Redevelopment Project
NEW DELHI, MAY 16: Maharashtra has directed the Slum Rehabilitation Authority (SRA) in Mumbai to give Rs 300 crore for the proposed Dharavi Redevelopment Project (DRP).
On May 15, the state Housing Department issued a government order explaining that an upfront payment of Rs 1,000 crore is to be made for the additional railway land parcel included in the Dharavi Redevelopment Project.
Maharashtra had in November 2017 decided to carry out the redevelopment of sectors 1 to 7 through a Special Purpose Vehicle (SPV). It was later decided to include 45 acres of land in the project and a Memorandum of Understanding (MoU) was signed with the railways in March 2019.
The department mentioned that the state has arranged Rs 800 crore and the remaining Rs 200 crore needs to be paid to the Railway Land Development Authority (RLDA) at the time of agreement between the DRP and the RLDA. The SPV would make all payments to the RLDA as agreed.
It further explained that the first instalment of Rs 500 crore is to be paid by the lead developer after 90 days from the letter of award (LOA). However, since LOA is yet to be given to the lead developer, the arrangement of money has to be made through SRA, Mumbai. Moreover, at the time of SPV formation with the lead developer, DRP/SRA as equity partner has to contribute Rs 100 crore, therefore the state wants the SRA to give Rs 300 crore for the project. It has clarified that after the formation of SPV, Rs 300 crore will be returned to SRA.
The much-awaited Dharavi Redevelopment Project, which has been pending for almost two decades now, will be undertaken across 2.8 sq km. The area is home to an informal leather and pottery industry which employs over a lakh people. The state government envisages to transform the sprawl into a cluster of high-rises with improved urban infrastructure, resettling 68,000 people, including slum dwellers and those with commercial establishments.
DRP completed the tendering process for Asia’s biggest slum cluster in November last year and Adani Realty, which quoted Rs 5,069 crore for the project, was the winning bidder.
-Indian Express
