Tax Refund Boost for Businesses in Developed Dharavi

Following its redevelopment under the Adani Group, businesses rehabilitated in Mumbai’s Dharavi will receive a State Goods and Services Tax (SGST) refund for a period of five years. This initiative aims to stimulate the local economy, announced the Dharavi Redevelopment Project Private Limited (DRRPL), a joint venture between the Maharashtra government and the Adani Group. The rebate, effective upon receipt of the occupation certificate, is expected to enhance the competitiveness of businesses and provide them with growth opportunities, as stated by the DRRPL.

Transforming Informal Businesses

The redevelopment of Dharavi is set to transform the informal nature of businesses in the area, integrating them into the broader narrative of India’s economic growth. To facilitate this transition, the state government has introduced tax benefits, including the reimbursement of SGST. This measure is aimed at establishing a solid foundation for both existing and new businesses in Dharavi, ultimately boosting their profitability, according to a spokesperson from DRPPL.

Tax Benefits and Economic Formalization

Under the scheme, SGST will be reimbursed by the state government’s Finance Department for a period of five years from the issuance of the occupation certificate. These incentives are expected to greatly encourage the formalization of Nav Dharavi’s economy, providing a significant impetus to its growth.

Dharavi, known as Asia’s largest slum covering over 250 hectares, is undergoing redevelopment by the Adani Group. The project aims to provide eligible residents with flats, along with facilities such as schools, community halls, and hospitals. Additionally, Dharavi houses numerous industrial and commercial units, specializing in garment and leather manufacturing, many of which serve as vendors for renowned national and international brands. With turnovers estimated in millions of dollars, these businesses are poised to benefit greatly from the redevelopment efforts.