Maharashtra govt asks SRA to give Rs 300 bn for Dharavi redevelopment
Real Estate

Maharashtra govt asks SRA to give Rs 300 bn for Dharavi redevelopment

The Maharashtra government has directed the Slum Rehabilitation Authority (SRA) to provide 3 billion rupees to the Dharavi Redevelopment Project Authority (DRPA). This money will be used to pay the Indian Railways for 45 acres of land that will be amalgamated with the slum for the redevelopment project. The other 100 crore rupees will be used as DRPA's equity share in the Special Purpose Vehicle (SPV) that will be set up to implement the project.

The SRA has been asked to provide the funds even though the developer, Adani Realty, has not yet been formally awarded the contract. The cabinet approved Adani's appointment as lead developer in December 2022, but the formal appointment has been delayed due to concerns about Adani's finances.

The government reached an agreement with the Railway Land Development Authority (RLDA) in 2019 to lease 45 acres of railway land for 99 years at a cost of 38 billion rupees. The government has already paid 8 billion rupees of the 10 billion rupees for the land. A definitive agreement was signed in October 2022. As per the agreement, the 2 billion rupees were to be paid by April 17, 2023.

A survey of the land was taken up in December 2022 by revenue officials along with railway and DRPA officials. Along with the 10 billion rupees, DRPA will redevelop the railway quarters and hand them over to the railways; besides it will also be given a share of the profits in the redevelopment project.

The GR states that the SPV to be formed for the implementation of the project will pay 5 billion rupees to the RLDA. This money to the SPV is to be paid by the lead developer within 90 days of the contract being awarded. "Since the letter of award has not yet been issued, the money needs to be arranged from the SRA. As an equity holder the DRPA needs to pay 1 billion rupees towards the SPV. SRA will be reimbursed after the SPV is formed," states the GR.

Adani Realty recently sought to know the quantum of Transfer of Development Rights (TDR) that would be generated from the project. Under DCPR 2034, it is mandatory for redevelopment projects utilising TDR to first use 50 per cent TDR generated from the Dharavi project. Sources said the quantum of TDR generated would depend on the number of persons eligible for free housing. The survey can be done only after the contract is awarded and SPV is formed.

Also Read
Mumbai Metro opens FOBs on Metro Line 7
Mumbai: The coastal road will probably open in parts this year


The Maharashtra government has directed the Slum Rehabilitation Authority (SRA) to provide 3 billion rupees to the Dharavi Redevelopment Project Authority (DRPA). This money will be used to pay the Indian Railways for 45 acres of land that will be amalgamated with the slum for the redevelopment project. The other 100 crore rupees will be used as DRPA's equity share in the Special Purpose Vehicle (SPV) that will be set up to implement the project. The SRA has been asked to provide the funds even though the developer, Adani Realty, has not yet been formally awarded the contract. The cabinet approved Adani's appointment as lead developer in December 2022, but the formal appointment has been delayed due to concerns about Adani's finances. The government reached an agreement with the Railway Land Development Authority (RLDA) in 2019 to lease 45 acres of railway land for 99 years at a cost of 38 billion rupees. The government has already paid 8 billion rupees of the 10 billion rupees for the land. A definitive agreement was signed in October 2022. As per the agreement, the 2 billion rupees were to be paid by April 17, 2023. A survey of the land was taken up in December 2022 by revenue officials along with railway and DRPA officials. Along with the 10 billion rupees, DRPA will redevelop the railway quarters and hand them over to the railways; besides it will also be given a share of the profits in the redevelopment project. The GR states that the SPV to be formed for the implementation of the project will pay 5 billion rupees to the RLDA. This money to the SPV is to be paid by the lead developer within 90 days of the contract being awarded. Since the letter of award has not yet been issued, the money needs to be arranged from the SRA. As an equity holder the DRPA needs to pay 1 billion rupees towards the SPV. SRA will be reimbursed after the SPV is formed, states the GR. Adani Realty recently sought to know the quantum of Transfer of Development Rights (TDR) that would be generated from the project. Under DCPR 2034, it is mandatory for redevelopment projects utilising TDR to first use 50 per cent TDR generated from the Dharavi project. Sources said the quantum of TDR generated would depend on the number of persons eligible for free housing. The survey can be done only after the contract is awarded and SPV is formed. Also Read Mumbai Metro opens FOBs on Metro Line 7Mumbai: The coastal road will probably open in parts this year

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code