A general view of Dharavi, one of Asia's largest slums, in Mumbai.
Credit: Reuters Photo
Mumbai: Eligible industrial and commercial units in the redeveloped Dharavi will enjoy benefits such as a refund of State Goods and Services Tax (SGST) to boost and formalise local businesses, according to Dharavi Redevelopment Project Pvt Ltd (DRPPL), a joint venture between the Maharashtra government and the Adani Group.
This is in accordance with the tender conditions.
The tax rebate will come into effect after the newly constructed buildings receive the occupation certificate (OC).
“Redevelopment will transform the informal nature of businesses in Dharavi and enable them to be a part of the India growth story. To support this transition, the state government has offered tax benefits like the reimbursement of SGST. This will provide existing and new businesses in Dharavi a robust footing and boost their profitability. It will make the businesses more competitive and give them manifold growth opportunities,” a DRPPL spokesperson said on Monday.
As per the tender conditions, the State Goods and Services Tax (SGST) for industrial and commercial units will be reimbursed by the state government’s Finance Department through the DRP/SRA for five years from the date of issuance of the OC. Eligible industrial and commercial units will need to provide SGST payment details as proof when claiming the refund.
Dharavi encompasses several thousand industrial and commercial units that manufacture garments and leather items. Many of these units are vendors for large national and international brands sold worldwide, with turnovers estimated to be in millions of dollars. They are eager to formalise their businesses to expand and gain momentum, both locally and globally.
"It is DRPPL’s endeavour to transform Dharavi into a globally connected city with commercial and industrial premises, while preserving its vibrant and unique entrepreneurial culture. Our aim is to upgrade the lives of the people of Dharavi by providing economic opportunities, futuristic education, vocational training, advanced healthcare facilities, and a quality lifestyle. These initiatives will be facilitated in both Dharavi and Nav Dharavi. Additionally, there will be provisions for community halls, recreational areas, public gardens, dispensaries, and daycare centres for children," the spokesperson stated.