MUMBAI: The Mumbai Metropolitan Region Development Authority (MMRDA) aims to raise about Rs 5,497 crore by leasing out seven plots in the Bandra-Kurla Complex (BKC).
Three plots are designated for residential use and four for commercial, with leases set for 80 years. The reserve price for commercial plots is set at Rs 3.4 lakh per sq m, while residential plots are priced at Rs 3.5 lakh per sq m.
The commercial plots admeasure 4,956 sq m, 7,072 sq m, 6,096 sq m, and 8,412 sq m. The area of the three residential plots is 5,409 sq m, 4,974 sq m and 5,876 sq m.
These plots in G block of BKC have a floor space index (FSI) of 4. The MMRDA estimates that the revenue from the commercial plots will total around Rs 3,657 crore, and from the residential plots, about Rs 2,290 crore. The authority anticipates that the land leases could generate a total of Rs 5,947 crore.
The BKC is a prime commercial and residential area, and leasing these plots allows MMRDA to generate funds that can be invested in infrastructure projects, transportation, and other development initiatives across the city. This approach helps in meeting budgetary needs and supporting the growth and modernisation of the city.
In 2022-23, the MMRDA successfully completed the tendering process for the allotment of commercial plots in the BKC. Following a competitive bidding process, the MMRDA awarded both plots to a Japanese corporate for a total price of Rs 2,067 crore. The transaction marked one of the highest foreign direct investments in the real estate sector in the country in 2022-23.
The MMRDA is facing a funds crunch considering the enormous infrastructure spend projected for the decade. The cumulative cost of 10 Metro projects, excluding Metro 3 (Colaba-Bandra-Seepz) and Metro 1 (Versova-Andheri-Ghatkopar), is Rs 75,000 crore. The total receipts for 2024-25 are estimated to be around Rs 39,453 crore, while total expenditures are estimated at Rs 46,921.29 crore.
The MMRDA does not have the power to generate revenues by way of tax. The MMRDA plans to raise revenues through land deals and monetisation of its assets, particularly the Metro network. While it expects a good cash flow from various sources of revenue over the next 25 years, the Rs 60,000 crore loan limit and money raised through bonds will act as a buffer in case of non-receipt from expected sources in the next five years due to a delay in projects.
In July, the MMRDA received approval to raise Rs 50,000 crore via bonds to fund various infrastructure projects in the city and adjoining areas.
