MMRDA, the Mumbai Metropolitan Region Development Authority decides to raise nearly Rs. 5,497 crore by leasing out plots in BKC (Bandra Kurla Complex).
Out of the total seven plots for leasing, three amongst them are for residential purposes with a lease for 80 years. The reserve price for residential plots is Rs. 3.5 lakh sqm while commercial plots are set at Rs.3.4 lakh per sqm.
The commercial plots are the size of 4,956 sqm, 7,072 sqm, 6,096 sqm, and 8,412 sqm. It has a residential area including residential plots in the sizes of 5,409 sqm, 5,974, and 5,876 sqm.
These plots are in the G block of Bandra Kurla Complex with a floor space index (FSI) of 4. MMRDA estimates the revenue from the commercial plots that finalise approximately Rs. 3,657 crore. The residential plots are nearly at a value of Rs. 2,290 crore.
The authority estimates the land lease that can create a total of nearly Rs. 5,947 crore.
Bandra Kurla Complex is also the prime location comprising commercial and residential space. The leasing of these plots lets MMRDA build a corpus fund that can be used for infrastructure projects. It includes infrastructure, transportation, and other development.
In 2022-23, MMRDA completed a tender process to allot commercial plots in the Bandra Kurla Complex (BKC). Amid the competitive procedure, the MMRDA two plots to a Japanese corporate company for Rs. 2,067 crore.
It is the highest transaction inked as one of the highest foreign direct investments in the country during 2022-23.
At present, MMRDA is facing a monetary crisis, as rapid infrastructure progress is on its way. The final cost for 10 metro projects ousting Metro 3 (Colaba-Bandra-Seepz), and metro 1 (Versova-Andheri-Ghatkopar), is Rs. 75,000 crore. The total receipts for 2024-25 are approximately Rs.39, 53 crore, while total expenditures are estimated at Rs. 46,921.29 crore.
Also, MMRDA does not hold the right to generate revenues via taxes. Thus, the authority plans to raise revenue via land deals and monetization of assets. MMRDA expects a good inflow of funds in the next 25 years. The Rs. 60,000 crore loan limit and money raised via bonds will help the authority to act as an emergency corpus.
