The agency that runs the Mumbai airport plans to make thousands of crores by selling off part of the land in pricey Andheri that had been given to it for improving facilities.
The Mumbai International Airport Ltd (MIAL) — that includes the Airports Authority of India (AAI) and a consortium led by infrastructure major GVK — plans to sell around 70 acres presently valued at around Rs5,000 crore. This land is part of the acreage allotted to MIAL for the airport modernisation project. The MIAL says this land is in excess of the project requirements.
According to a senior executive at GVK, MIAL is looking to sell 10-12 acres, which realtors value at between Rs700 crore and Rs800 crore, within the next one year.
The remaining 60 acres will be put on the block within the next three to four years, said Anil K Pandit, president, real estate at GVK.
"There are some permissions that we are seeking from the government and once that is done, we would sell the land in tranches. The land to be sold is apart from the one that has a slum on it," said Pandit, on the sidelines of the CII real estate conclave in Mumbai. Government approvals could come through within a year, said sources close to the development.
Company officials, however, did not respond to queries on the fate of the plot that has a slum on it.
According to sources close to the development, bids for the land would be invited only after it gets a clear title — a term used in the realty sector to describe a land where work can begin.
Industry experts, however, are taking it with a pinch of salt. "The land that GVK is planning to sell is very close to the airport and the runway, so a buyer would discount the price for that," said the head of an international real estate consultancy firm. "But, the Mumbai realty market does not work on logic or any set principles. It works on emotions and so the land may fetch an attractive price."
Meanwhile, MIAL expects the airport modernisation project, which had a December 2012 deadline, to be delayed by three to four month, said Pandit.
"We are expanding more than what was originally planned. We are using 200 acres more in the development of the international airport than what was earlier planned," said Pandit.