Even before the deal for the Rs 26,000-crore Dharavi redevelopment project is signed, the state government has sanctioned a major fiscal concession to the project’s developer.Chief Minister Devendra Fadnavis has agreed to tap into the state’s exchequer to reimburse all the payments made by the private developer-led Special Purpose Vehicle (SPV) towards Goods and Services Tax (GST) payable over taxable components in the construction project for a period of seven years.
Additionally, the state government has agreed to fully reimburse GST paid by existing commercial and industrial units, which are rehabilitated as part of the project, for five years. Sanjay Kumar, Additional Chief Secretary (Housing), when contacted, confirmed approval to the proposal. Meanwhile, Fadnavis, when contacted, said, “The suggestion that the concession is being given to a particular company is untrue. All the concessions and conditions for the redevelopment had been decided by the cabinet before floating the tender. These were pre-tender conditions known to all bidders.”