Mumbai, Feb 27 (KNN) Dharavi Redevelopment Project is set to provide a State Goods and Services Tax (SGST) refund for a duration of five years to industrial and commercial units establishing operations within the region.

This initiative, a collaborative effort between the Maharashtra government and Adani Group is aimed at invigorating the local economy, as stated by the company in an official statement alongside other benefits outlined in the tender conditions.

The redevelopment endeavour seeks to metamorphose the informal landscape of businesses in Dharavi.

To facilitate this transition, the state government has extended tax incentives, which are envisioned to furnish both existing and new businesses in Dharavi with a solid foundation, consequently enhancing their profitability.

Under the scheme, the tax rebate will be activated upon the issuance of occupation certificates for the newly constructed buildings. The reimbursement of SGST for industrial and commercial units will be overseen by the state government's finance department.

It will be administered either through the Dharavi Redevelopment Project or the Slum Rehabilitation Authority. This reimbursement will span a period of five years from the OC issuance date.

Dharavi encompasses numerous industrial and commercial units engaged in the production of garments and leather items. Many of these establishments serve as vendors for prominent national and international brands, with turnovers estimated to be in the millions of dollars.

In November 2022, the Adani Group emerged as the victor in securing the Dharavi redevelopment project. An initial investment of Rs 5,069 crore has been allocated for this extensive project, which is valued at over Rs 20,000 crore.

The redevelopment will be executed in phases across a 259-hectare area over a span of seven years, with the complete overhaul of Dharavi slated to unfold over a 17-year timeline.

Residents domiciled in Dharavi until January 1, 2000, are entitled to receive houses that are 17 per cent larger at no cost.

On January 1, DRPPL announced its collaboration with architect Hafeez Contractor for the Dharavi project, which encompasses the redevelopment and rehabilitation of nearly 1 million residents residing in one of Asia's largest slum clusters.

(KNN Bureau)