As mill culture vanishes, NTC expects Rs 5,000-crore windfall
The National Textile Corporation (NTC) is expecting a windfall from the sale of its nine mills located in Mumbai’s realty hot spots. This will also complete the transformation of central and south central Mumbai from a mill precinct to a business hub and premium housing destination.mumbai Updated: Jan 20, 2010 01:05 IST
The National Textile Corporation (NTC) is expecting a windfall from the sale of its nine mills located in Mumbai’s realty hot spots. This will also complete the transformation of central and south central Mumbai from a mill precinct to a business hub and premium housing destination.
The auction of the mills, all located in the Dadar-Worli-Parel belt, is expected to free up 90 acres of land. K. Ramchandran Pillai, chairman anmanaging Director of NTC, said the NTC expected a minimum rate of Rs 12,000 per square foot. This works out to Rs 5,000 crore from the entire sale.
Girangaon, as the mill area is known, will be transformed into a modern township replete with high-rises and malls.
Pillai said the process would begin in April. “The modernisation of mills, along with joint ventures, is complete. Now, the focus is on auctioning our remaining mills,” he said.
Of its 25 mills, NTC sold five in 2005 and entered into joint ventures to revive four others. Three other mills were handed over to the civic body and Maharashtra Housing and Area Development Authority (MHADA) as per the rules that govern such sales.
NTC now has 10 mills, of which it can sell nine and hand over one to MHADA and the Brihanmumbai Municipal Corporation (BMC).
Realty experts said the timing was right. “The market has improved and land deals are being signed again,” said Anuj Puri, country head, Jones Lang LaSalle Meghraj, a real estate consultancy.
Pranay Vakil, chairman of real estate consultancy Knight Frank, said this is an opportunity to provide affordable housing. “The state should give additional floor space index to developers ready to construct affordable houses and fix the prices,” said Vakil. He said that at least 30,000 flats of 600 square feet each could easily be built on the mill lands.
In the past, mill lands have been sold for ultra-luxury houses and plush offices.