Now, a Special Purpose Vehicle (SPV) will be formed with the Slum Rehabilitation Authority, the special planning authority for the Dharavi Notified Area and the DRA. The equity shareholding of the lead member of the selected bid in the SPV will be 51 per cent. Along with its consortium partner, the lead member will hold 80 per cent of the equity for two years from the date of issuance of the Commencement Certificate and later 51 per cent.
The DRA also signed a “definitive agreement” with the railways for handing over 47.37 hectares of railway land at Dadar for the project. In 2019, the DRA paid ₹800 crore upfront but the land is yet to be handed over.
The DRA has now paid ₹28 lakh to the state revenue department to carry out the measurement of the railway land. Once the measurement is completed the physical possession of the land will be handed over to the authority.
Apart from the 800 crore, the Railways are to be paid another ₹3,000 crore as a share in profit besides redevelopment of the railway quarters and rehabilitation of existing slums on the railway land free of cost.
The SPV will prepare the master plan for the redevelopment as well as carry out a fresh survey of the slum dwellers to determine their eligibility for free housing. There are around 58,000 eligible slum dwellers and an equal number of ineligible slum dwellers. The latter will be rehabilitated on land 10km from Dharavi or on land available in the Mumbai Metropolitan Region.
The industrial and commercial units will not be moved out of Dharavi and unit holders will be offered tax concessions for five years for the financial loss they may suffer. The government will also lease salt pan land at Wadala for 99 years for the redevelopment project. The land size is around 47 acres and the authority will obtain permission from the Centre for building rental housing on this plot. The authority will pay compensation to the centre for the land.