Railways yet to part with 47 acres for phase 1 of Dharavi

18 Oct 2023 CW Team

This railway-owned land, situated adjacent to Dharavi, is slated for the construction of permanent accommodation as part of phase I of the redevelopment plan. Although the physical survey of the land has been completed, discussions with the Indian Railways for its handover remain ongoing.

The SPV, formed just last month, is a collaborative effort between the Dharavi Redevelopment Project Authority (DRPA), the Slum Rehabilitation Authority (SRA), and the lead developer, Adani Realty. In May, following the directives of the state government, the SRA allocated Rs 300 crore for the project. Of this amount, Rs 200 crore was designated for settling the pending balance owed to the Indian Railways, while the remaining Rs 100 crore was allocated by the DRPA to support the equity required for SPV formation.

A government resolution issued in May outlined that the funds would be reimbursed to the SRA once the SPV was officially established. A spokesperson for the Dharavi Redevelopment Project Pvt Ltd confirmed that the lead partner, Adani Realty, had fulfilled their financial obligations as specified in the tender document and letter of award within the set timeframe, including payments for the railway land.

The delay in the land handover presents a significant challenge to the Dharavi Redevelopment Project, a critical initiative aimed at transforming one of Mumbai's most densely populated and economically disadvantaged areas. Stakeholders and authorities continue to work towards a resolution with Indian Railways to ensure the timely progress of this vital redevelopment project.

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The Indian Railways is facing delays in handing over 47.5 acres of land in Dadar to the Dharavi Redevelopment Project Pvt Ltd, a special purpose vehicle (SPV) established for the revitalization of the sprawling Dharavi slum. Insiders reveal that the railway authorities have yet to clear the land, which is currently occupied by stored goods, hindering the progress of this significant urban development project.This railway-owned land, situated adjacent to Dharavi, is slated for the construction of permanent accommodation as part of phase I of the redevelopment plan. Although the physical survey of the land has been completed, discussions with the Indian Railways for its handover remain ongoing.The SPV, formed just last month, is a collaborative effort between the Dharavi Redevelopment Project Authority (DRPA), the Slum Rehabilitation Authority (SRA), and the lead developer, Adani Realty. In May, following the directives of the state government, the SRA allocated Rs 300 crore for the project. Of this amount, Rs 200 crore was designated for settling the pending balance owed to the Indian Railways, while the remaining Rs 100 crore was allocated by the DRPA to support the equity required for SPV formation.A government resolution issued in May outlined that the funds would be reimbursed to the SRA once the SPV was officially established. A spokesperson for the Dharavi Redevelopment Project Pvt Ltd confirmed that the lead partner, Adani Realty, had fulfilled their financial obligations as specified in the tender document and letter of award within the set timeframe, including payments for the railway land.The delay in the land handover presents a significant challenge to the Dharavi Redevelopment Project, a critical initiative aimed at transforming one of Mumbai's most densely populated and economically disadvantaged areas. Stakeholders and authorities continue to work towards a resolution with Indian Railways to ensure the timely progress of this vital redevelopment project.

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