The cost of constructing two highrise buildings at Nariman Point under the Manora MLA hostel redevelopment project has escalated to ₹2,009 crore on account of additional development charges and incidental expenses related to the project’s floor space index (FSI) of 5.39. Both buildings are currently under construction and the project is slated for inauguration as per schedule, by March 2028, officials said.

In March 2019, four 14-storey buildings comprising the Manora MLA hostel complex were demolished after the Brihanmumbai Municipal Corporation (BMC) declared them dilapidated. The state government invited bids for construction of two highrises to replace the four buildings the same year, with the base price at ₹862 crore.
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The project was initially entrusted to the National Buildings Construction Corporation (NBCC), a central public sector undertaking. But in December 2020, following a change in the state government, it was entrusted to the state public works department (PWD).
Construction cost increases
In March 2023, the PWD awarded the project to Larsen & Toubro (L&T) on a design-and-build basis, at a cost of ₹1,266 crore. The cost subsequently rose to ₹1,750 crore, and recently to ₹2,009 crore.
{{/usCountry}}In March 2023, the PWD awarded the project to Larsen & Toubro (L&T) on a design-and-build basis, at a cost of ₹1,266 crore. The cost subsequently rose to ₹1,750 crore, and recently to ₹2,009 crore.
{{/usCountry}}According to PWD officials, the latest hike was on account of additional charges related to the project’s FSI, including an additional ₹55.50 crore towards development charges. The cost of interior design and furniture also contributed to the overall escalation, officials said.
A senior PWD official said that at a recent meeting comprising senior officials and representatives of various departments, the state government set March 2028 as the target for inauguration of the two towers.
“Tower A, planned as a 42-storey structure, has reached the 34th floor, while construction of the other 29-storeys tower is complete. The project is progressing as scheduled, and completion by March 2028 should not be a problem,” the official said.
Shashi Prabhu, the project’s architect, said construction work was progressing rapidly, and would be completed within the stipulated deadline. “We have also prepared a sample flat featuring state-of-the-art interiors, which MLAs can visit,” Prabhu stated.
Alternative accomodation expenses
Since February 2018, the state legislature has spent more than ₹210 crore on compensating 288 MLAs and 78 MLCs towards alternative accommodation.
“Of the more than 360 legislators in the two houses, over 200 have been allotted one room each, measuring around 300 square feet, at the Akashwani MLA Hostel. They receive ₹50,000 per month towards alternative accommodation, while the remaining legislators who have not been allotted rooms receive ₹1 lakh per month,” an official from the state legislature said.
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The annual expenditure on alternative accommodation for legislators stands at ₹30.50 crore, while the total expense on the same till now, at ₹210 crore, is equivalent to more than 10% of the total redevelopment cost, the official added.
The redeveloped hostel complex will include rooms and offices for legislators and their staff, parking facilities for 750 vehicles, two meeting halls, an auditorium, a library and a gymnasium.
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