MMRDA to Lease BKC Plots to Raise INR 5,497 Crore for Infrastructure Development

Mumbai:

The Mumbai Metropolitan Region Development Authority (MMRDA) is set to raise approximately ₹5,497 crore by leasing out seven plots in the Bandra-Kurla Complex (BKC). This initiative aims to fund various infrastructure projects in the Mumbai Metropolitan Region (MMR).

Mixed-Use Plots for Lease

The available plots include three designated for residential use and four for commercial use, all with 80-year leases. The reserve price for commercial plots is set at ₹3.4 lakh per sq m, while residential plots are priced at ₹3.5 lakh per sq m.

Plot Details

Commercial Plots:

• 4,956 sq m
• 7,072 sq m
• 6,096 sq m
• 8,412 sq m

Residential Plots:

• 5,409 sq m
• 4,974 sq m
• 5,876 sq m

Financial Projections

The MMRDA projects that revenue from the commercial plots will total around ₹3,657 crore, while the residential plots are expected to generate about ₹2,290 crore, leading to a cumulative potential revenue of ₹5,947 crore.

Generating Funds for Urban Development

Leasing these prime plots in the G block of BKC allows the MMRDA to secure funds for essential infrastructure projects, transportation, and other developmental initiatives across the city. This strategy is vital for meeting budgetary needs and supporting the city's growth and modernization.

Previous Successes and Future Plans

In the 2022-23 fiscal year, the MMRDA successfully completed the tendering process for commercial plots in BKC, awarding them to a Japanese corporate for ₹2,067 crore. This marked one of the highest foreign direct investments in India's real estate sector for that period.

MMRDA's Financial Strategy

Facing a significant infrastructure spending challenge projected for the decade, with a cumulative cost of 10 Metro projects at ₹75,000 crore, the MMRDA has to innovate its revenue generation methods. The estimated total receipts for 2024-25 are around ₹39,453 crore, against total expenditures of ₹46,921.29 crore.

Without the power to generate revenue through taxes, the MMRDA plans to raise funds through land deals and asset monetization, particularly focusing on the Metro network. A ₹60,000 crore loan limit and funds raised through bonds will provide a buffer against potential revenue delays. In July, the MMRDA received approval to raise ₹50,000 crore via bonds to support various infrastructure projects in the city and surrounding areas.