In a move that could free up precious space in a space-starved city, the Mumbai Port Trust (MbPT) is for the first time considering allowing the state government to redevelop some of the old buildings housed on its land.

MbPT is the city's largest landowner, with control over a total of 1,800 acres, most of it prime real estate in the island city.

In a meeting held on Thursday with the Maharashtra Housing and Area Development Authority (Mhada), the port authorities expressed a willingness to allow redevelopment of 1,200 dilapidated buildings housing nearly 25,000 tenants on its land.

Mhada is responsible for the maintenance of these pre-1940 buildings, but the MbPT has never allowed redevelopment.

"Currently, we do not have a policy of redevelopment on MbPT land. Discussions are underway," said port trust chairman Rajeev Gupta.