Dharavi Redevelopment Project Pvt. said eligible industrial and commercial units will receive a refund of the state goods and services tax to boost and help formalise local businesses in the redeveloped region.
The tax rebate will come into effect after the newly constructed buildings receive the occupation certificate, the joint venture between the Maharashtra government and Adani Group said in a statement on Monday.
This move is as per the tender conditions of the special purpose vehicle, which is redeveloping Dharavi in collaboration with the Maharashtra government.
The SGST for industrial and commercial units will be reimbursed by the Finance Department for five years from the date of issuance of the occupation certificate, it said.
This (SGST refund) will provide existing and new businesses in Dharavi a robust footing and boost their profitability," a DRPPL spokesperson said. "It will make the businesses more competitive and give them manifold growth opportunities."
The aim is to not only redevelop Dharavi into a better space but also to ensure a quality lifestyle for residents while maintaining the integrity of its diversity, DRPPL said.
Dharavi encompasses several thousand industrial and commercial units manufacturing garment and leather items. Many are vendors for large national and international brands sold across the world, with turnover estimated to be in millions of dollars, according to DRPPL. "They are keen to formalise their businesses to expand and get a fillip, both locally and globally."
Earlier this year, Adani Group also said it would offer eligible residents of Mumbai's Dharavi slum clusters new flats measuring 350 square feet, a 17% extra space and the highest among slum redevelopment projects in the city.
The conglomerate won the contract to rebuild the largest slum cluster in Asia in November 2022. It has partnered with architect Hafeez Contractor, design firm Sasaki Associates Inc. and consultant Buro Happold Ltd. to design and conceptualise the plans for Dharavi.
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