The massive Dharavi Redevelopment Project, led by Adani Group's Dharavi Redevelopment Project Private Ltd (DRPPL), faces a roadblock in Sector 5 due to ongoing fee negotiations with the Maharashtra Housing and Area Development Authority (MHADA). The transfer of Sector 5, which includes five buildings for 942 rehabilitated tenants, has stalled. Key negotiation points include INR 183.57 crore in interest, an INR 17.24 crore land fee, and other waivers, totaling over INR 665 crore. MHADA has proposed these waivers to the state government. A swift resolution is crucial for the project's progress and for improving living conditions for thousands of Dharavi residents.
The massive Dharavi Redevelopment Project, spearheaded by the Adani Group's Dharavi Redevelopment Project Private Ltd (DRPPL), is encountering a roadblock in Sector 5 due to ongoing negotiations over fees with the Maharashtra Housing and Area Development Authority (MHADA).
The handover of Sector 5, located near the Dharavi depot, from MHADA to DRPPL has been put on hold. This sector includes five buildings constructed by MHADA to house 942 rehabilitated tenants.
The key points of the negotiation, totaling over INR 665 crore, include significant aspects such as Interest Capitalization, Land Fee, and Other Waivers. MHADA has charged INR 183.57 crore in interest due to a 12-year construction delay, which DRPPL attributes to external factors like government decisions and contractor issues. DRPPL suggests reducing this by recalculating for a 1.5-year period. For the Land Fee of INR 17.24 crore in Sector 5, DRPPL proposes paying 25% of the ready reckoner rate linked to the commencement certificate of the project's sale component. Additionally, DRPPL seeks waivers for various provisional expenses, including the construction of a storm water drain, arguing that these costs should only be borne when the work is carried out.
MHADA has already submitted a proposal to the state government regarding the fee and liability waivers requested by DRPPL. The final decision on these waivers' rests with the state government.
A swift resolution to the fee negotiations is critical for the progress of the Dharavi Redevelopment Project in Sector 5. The thousands of tenants expecting improved living conditions through this large-scale redevelopment initiative are eagerly awaiting the outcome of these negotiations.
The outcome of these negotiations will have a significant impact on the project's overall cost, estimated to be over INR 665 crore just for the points currently under discussion. A speedy resolution is vital to ensure the project's progress and deliver on the promise of improved living conditions for the residents of Dharavi.
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