CIDCO puts 25,000 sq mt plot on auction, developers say will sell for ₹600 Crore

The City and Industrial Development Corporation of Maharashtra (CIDCO) has put up a plot measuring 25,138.86 square metres (sq m) for auction in Navi Mumbai that is expected to earn the state at least ₹350 crore.

The City and Industrial Development Corporation of Maharashtra (CIDCO) has put up a plot measuring 25,138.86 square metres (sq m) for auction in Navi Mumbai that is expected to earn the state at least ₹350 crore, officials said.

CIDCO has put up a plot measuring 25,138.86 square metres (sq m) for auction in Navi Mumbai (Virendra Singh Gosain/HT PHOTO)

The plot, located in adjoining sectors of 54, 56 and 58 in Nerul, is one of 16 plots that will be auctioned in the satellite city. It is the largest of the lot, and with a base rate of ₹1.36 lakh per sq m, its reserve price is a whopping ₹343.46 crore. The plot has a base floor space index (FSI) of 1.5. While FSI determines the height the developer can build to the reserve price refers to the base price at which the bidding begin. In order to participate in the bidding process, an Earnest Money Deposit of ₹29.49 crore will be required to be paid up front.

Real estate developers expect that the auction could end up fetching CIDCO double this amount, as it is located close to the Arabian sea.

By contrast, the remaining plots 15 are located in Panvel, Kalamboli, Ghansoli, Nerul and Vashi, and their areas range from 398 sq m to 3,870 sq m. The reserve price of these plots start at ₹43,900 per sq m. The plot in Vashi, which has an area of 3,870 sq m also has a reserve price of ₹1.36 lakh.

Arvind Goel, former president of real estate industry body CREDAI-MCHI (Navi Mumbai) said that the Nerul plot had a direct view of the Arabian sea and was close to the jetty that is expected to come up which is why it commands a higher value. “I expect that this plot will be auctioned for ₹2.5 lakh per sq mt, thus taking the value of the plot to ₹628 crore,” he said.

The plot is intended for commercial as well as residential use, the tender document floated by CIDCO, read.

According to a senior CIDCO official, a plot of this size has been made available for developers to bid on after at least two to three years. The bidding process commenced on July 13, and the online auction will take place on August 4.

“The biggest plot measuring 25,138.86 sq mt, is close to the sea and around 30% of the plot falls under CRZ I, whereas the remaining is in CRZ II. We have already informed that those bidding for the plot will require MCZMA (Maharashtra Coastal Zone Management Authority) permission for carrying out construction,” the official quoted above said.

CIDCO expects to make above ₹1,000 crore from the auction of all 16 plots. The money will be used to fund Phase II of the metro work, officials said.

Manohar Shroff, a Navi Mumbai based developer said that the Nerul plot will go at a higher price because in the past, CIDCO auctions has seen plots being auctioned at more than double the reserve price.