The Mumbai Metropolitan Region Development Authority (MMRDA) has announced plans to lease seven prime land plots in the Bandra-Kurla Complex (BKC). This initiative is projected to generate approximately INR 5,497 crore, aimed at supporting the city’s expanding infrastructure demands.
The land in question includes three plots designated for residential development and four for commercial purposes. The leases will be secured for a substantial period of 80 years. For commercial plots, the reserve price has been set at INR 3.4 lakh per square metre, while residential plots are priced slightly higher at INR 3.5 lakh per square metre. The sizes of the plots vary, with commercial plots ranging from 4,956 to 8,412 square metres, and residential plots from 4,974 to 5,876 square metres.
Located in the G Block of BKC, these plots benefit from a floor space index (FSI) of 4, which permits considerable development. MMRDA estimates that commercial leasing could yield approximately INR 3,657 crore, with residential leases potentially bringing in around INR 2,290 crore. This revenue is pivotal for MMRDA, which aims to accumulate nearly INR 5,947 crore through such initiatives.
BKC is recognised for its high-value potential in both commercial and residential sectors. By monetising these land assets, MMRDA plans to reinvest the funds into crucial infrastructure projects throughout Mumbai, particularly focusing on transportation and urban development. This funding strategy is crucial, given the authority’s budgetary constraints amid extensive ongoing projects. MMRDA has been grappling with financial shortfalls recently, with the estimated cumulative cost for 10 Metro projects, excluding Metro 3 and Metro 1, hovering around INR 75,000 crore. For the fiscal year 2024-25, the authority’s total receipts are projected at INR 39,453 crore, while expenditures are expected to reach approximately INR 46,921 crore.
To bridge this gap, MMRDA has been actively seeking various revenue-generating mechanisms, including land leases and asset monetisation. The authority’s revenue generation efforts are further supported by a recent approval to raise INR 50,000 crore through bonds for financing city infrastructure. This financial cushion is essential to address potential revenue shortfalls caused by project delays or unforeseen challenges.
In a notable development last year, MMRDA awarded commercial plots in BKC to a Japanese corporation for INR 2,067 crore. This deal represents one of the highest levels of foreign direct investment in India’s real estate sector for the fiscal year 2022-23, underscoring the growing interest in Mumbai’s commercial property market.
