Mumbai Metropolitan Region Development Authority (MMRDA) plans to generate approximately Rs 5,497 crore by leasing out seven plots in the Bandra-Kurla Complex (BKC)
The Mumbai Metropolitan Region Development Authority (MMRDA) plans to generate approximately Rs 5,497 crore by leasing out seven plots in the Bandra-Kurla Complex (BKC).
The leases, set for 80 years, include three plots designated for residential use and four for commercial purposes. The reserve price for commercial plots is Rs 3.4 lakh per sq m, while residential plots are priced at Rs 3.5 lakh per sq m.
The commercial plots measure 4,956 sq m, 7,072 sq m, 6,096 sq m, and 8,412 sq m. The residential plots cover areas of 5,409 sq m, 4,974 sq m, and 5,876 sq m. All plots are located in the G block of BKC, with a floor space index (FSI) of 4.
MMRDA estimates that leasing the commercial plots will generate around Rs 3,657 crore, while the residential plots are expected to bring in about Rs 2,290 crore. In total, the land leases could generate approximately Rs 5,947 crore.
BKC is a prime commercial and residential area, and leasing these plots will allow MMRDA to raise funds for infrastructure projects, transportation, and other developmental initiatives across Mumbai. This strategy helps meet budgetary needs and supports the city’s growth and modernisation.
In the 2022-23 financial year, MMRDA successfully completed the tendering process for commercial plot allotments in BKC. Through competitive bidding, the authority awarded both plots to a Japanese corporation for Rs 2,067 crore, marking one of the highest foreign direct investments in the Indian real estate sector that year.
Facing a significant funding gap due to extensive infrastructure spending projected for the decade, MMRDA plans to raise revenues through land deals and asset monetisation, particularly of the Metro network. The cumulative cost of 10 Metro projects, excluding Metro 3 (Colaba-Bandra-Seepz) and Metro 1 (Versova-Andheri-Ghatkopar), is Rs 75,000 crore. For 2024-25, total receipts are estimated at Rs 39,453 crore, while total expenditures are projected at Rs 46,921.29 crore.
Without the power to generate revenue through taxes, MMRDA relies on land deals and bond issues to fund its projects. In July, the authority received approval to raise Rs 50,000 crore via bonds to support various infrastructure projects in Mumbai and surrounding areas. The Rs 60,000 crore loan limit and funds raised through bonds will act as a buffer in case of delays in expected revenue over the next five years.
