As the saying goes, the devil is in the details. A week after the Maharashtra Cabinet approved inviting fresh tenders for the redevelopment of the Dharavi slum, the state government in a 35-page document has listed the additional concessions to be offered to the developer and the role of special purpose vehicle (SPV) in the time bound completion of the project.
SPV will be exempted from payment of betterment charges, loan charges, inspection charges and layout deposit amount. In addition, the state urban development department will take necessary decisions on the exemption in certain provisions of Development Control Regulations, and permission to invest/use TDR without Indexation. It will also propose an exemption to relax provisions of open leases in front of buildings.
Further, the industry department will provide a subsidy for the use of modern technology during construction and implement measures to reduce air pollution.
The government will also refund the state GST paid by SPV for 15 years and also refund of State GST paid by the industrial and commercial company after obtaining a certificate of occupancy in notified areas for a period of five years.
Besides, the Dharavi Redevelopment Authority/Slum Rehabilitation Authority will seek the Centre’s approval for the extension of the Prime Minister’s Awas Yojana up to 2037, income tax relief to the special purpose vehicle.
Further, DRA/SRA after checking the necessary fulfilment of various conditions of the environment and civil aviation will send the integrated development proposal to the union ministries of environment and civil aviation. The DRA/SRA CEO will give directions for the commencement of work considering that it has not received any communication citing lapses and thereby the union ministries have approved the proposal.
SPV Company will adopt the latest high-rise technology available for speedy and quality construction of the Project. Technologies such as Mivan/S-Form, tunnel form and jump form, precast members, 3-D printing or any other technology shall be used for speedy and quality construction of rehab buildings.
The Bidding Company/Lead Member of the Consortium shall have a minimum consolidated net worth of Rs 20,000 crore as per the latest balance sheet and such balance sheet shall not be earlier than March 31, 2022.
In case of a consortium, the Technical Consortium Member shall have a minimum net worth of Rs 2,000 crore as per the latest balance sheet and such balance sheet shall not be earlier than March 31, 2022.
“Rehabilitation, renewal, amenities and infrastructure component shall be completed within 7 years from the date of issuance of the Commencement Certificate for the first phase of the project. DRP/SRA has paid Rs 800 cr to Railway Land Development Authority (RLDA). Additional amount depending on the land being transferred to DRP/SRA will be paid (Total Rs. 1000 cr for 45 acres of land and proportionate higher amount towards such higher areas) by DRP/SRA. The SPV Company shall pay to DRP/SRA, the payments made by DRP/SRA, including any cost incurred and interest,” it reads.
Moreover, the SPV Company shall indemnity the Government of Maharashtra for payment of Rs 2,800 crore (or any proportionate higher amount as per the additional land being given by RLDA), and shall be responsible for payment of the such amount as per the Definitive Agreement that will be entered between DRP/SRA and RLDA.