The state government of Maharashtra has directed the Slum Rehabilitation Authority (SRA) to allocate Rs 300 crore to the Dharavi Redevelopment Project Authority (DRPA) for the revitalization of slums in Dharavi. However, a pending payment of Rs 200 crore to the Indian Railways for the railway land integrated into the project poses a financial hurdle. Adani Realty, the proposed developer, awaits the official contract after a delay caused by concerns raised in the Hindenburg report on Adani's financial status.
The state government of Maharashtra has instructed the Slum Rehabilitation Authority (SRA) to provide a sum of Rs
300 crore to the Dharavi Redevelopment Project Authority (DRPA) to facilitate the redevelopment of the slums in
Dharavi. The housing department of the state issued a government resolution last week stating that the outstanding
amount of Rs 200 crore is yet to be paid to the Indian Railways for the 45-acre railway land located in Dadar that was
supposed to be integrated with the slum for the purpose of redevelopment.
The railway property comprises unused land as well as housing units for railway staff. The intended purpose of the
facility was to provide accommodations during the rehabilitation project's transit phase. DRPA holds equity worth Rs
100 crore in the upcoming Special Purpose Vehicle (SPV) that will execute the proposed project. SRA has been
requested to facilitate the funding even though Adani Realty, the developer, has not yet been granted the contract.
Adani's confirmation as the primary developer was granted by the cabinet in December 2020; however, the official
appointment was postponed due to the Hindenburg report on Adani's financial status published in January.
Last year, the government struck a deal with the RLDA to rent out 45 acres of railway property for a period of 99
years, for a total of Rs 3,800 crore. The government had provided a payment of Rs 800 crore from the total amount of
Rs 1,000 crore to the RLDA for the land. An agreement that was considered definite was accomplished in October of
the previous year. According to the terms of the agreement, a payment of Rs 200 crore was due on April 17 of this
year. Last December, officials from revenue, railway, and DRA conducted a survey of the land.
In addition to providing Rs 1,000 crore, DRA will renovate the railway housing complexes and transfer them to the
railways. As part of the development venture, DRA will also receive a portion of the revenues. According to the GR,
the creation of an SPV will be required to carry out the project, and this entity is obligated to provide the RLDA with a
sum of Rs 500 crore. The lead developer is obligated to transfer the funds to the SPV within 90 days of the contract's
procurement. As the award letter has yet to be released, the funds must be procured from the SRA. The DRPA,
holding equity, is obliged to transfer a sum of Rs 100 crore to the SPV. The government regulation has laid out that
SRA's compensation will be provided only after the establishment of the SPV.
Adani Realty recently inquired about the amount of Transfer of Development Rights (TDR) that could be expected
from the project. According to DCPR 2034 regulations, redevelopment ventures that employ TDR must initially
employ 50% of the TDR produced by the Dharavi undertaking. According to sources, the amount of TDR produced
will be determined by the number of individuals entitled to receive housing for free. Conducting the survey is
restricted to a post-award phase and the formation of an SPV.
The SRA has officially been designated as a planning authority, allowing it to operate as a local governing body within
its jurisdictional boundaries. The State Government has given the Chief Executive Officer of SRA the authority to
exercise powers outlined in different sections of the MR and TP Act, 1966. The principal aim of slum upgrading is to
eradicate substandard living conditions among slum residents and concentrate primarily on relocating them elsewhere.
Advertisement
Facebook
Whatsapp
