The state government has directed the Slum Rehabilitation Authority (SRA) to give Rs 300 crore to the Dharavi Redevelopment Project Authority (DRPA) for slum redevelopment project.
In a Government Resolution (GR) issued on Thursday, the state housing department said Rs 200 crore is the balance to be paid to the Indian Railways for the 45-acre railway land at Dadar which was to be amalgamated with the slum for the redevelopment project.
A part of the railway land is vacant, and has railway quarters on it. It was to be used for transit accommodation for the rehabilitation project. The other Rs 100 crore is DRPA’s equity share in the Special Purpose Vehicle (SPV) to be set up for implementing the project.
SRA has been asked to provide the funds even as the developer – Adani Realty – has still not been awarded the contract. Though the cabinet approved Adani’s appointment as lead developer in December last year, the formal appointment has been delayed after the Hindenburg report on Adani’s finances in January.
In 2019, the government reached an agreement with the Railway Land Development Authority (RLDA) to lease 45 acres of railway land for 99-years at a cost of Rs 3,800 crore. The government had outright paid Rs 800 crore of the Rs 1,000 crore for the land to the RLDA.
A definitive agreement was signed in October last year. As per the agreement the Rs 200 crore was to be paid by April 17 this year. Survey of the land was taken up in December last year by revenue officials along with railway and DRA officials.
Along with the Rs 1,000 crore, DRA will redevelop the railway quarters and hand it over to the railways; besides it will also be given a share of the profits in the redevelopment project. The GR states that the SPV to be formed for the implementation of the project will pay Rs 500 crore to the RLDA.
This money to the SPV is to be paid by the lead developer within 90 days of the contract being awarded. “Since the letter of award has not yet been issued, the money needs to be arranged from the SRA. As an equity holder the DRPA needs to pay Rs 100 crore towards the SPV. SRA will be reimbursed after the SPV is formed,” states the GR.
Adani Realty recently had sought to know the quantum of Transfer of Development Rights (TDR) that would be generated from the project. Under DCPR 2034, it is mandatory for redevelopment projects utilising TDR to first use 50% TDR generated from the Dharavi project.
Sources said the quantum of TDR generated would depend on the number of persons eligible for free housing. The survey can be done only after the contract is awarded and SPV formed.
