MMRDA looks at raising ₹656 crore through 3 more BKC plots

MMRDA aims to raise ₹656 crore by leasing three plots for a hospital, sports, and educational institutes, amid a ₹1.51 lakh crore debt burden.

MUMBAI: The Mumbai Metropolitan Region Development Authority (MMRDA) is looking at generating at least ₹656 crore by leasing out three plots for a hospital, a sports institute and educational institute. The development authority has already put up seven plots on the block with the aim of generating a minimum of ₹5,497 crore.

MMRDA looks at raising ₹656 crore through 3 more BKC plots

The lease period for the three plots for which auction bids have been invited by MMRDA on Saturday will be 80 years, the same period as for the seven land parcels announced in August.

Of the 10 plots, four are meant for commercial purposes, three for residential use and one each for a hospital, an educational institute and a clubhouse-cum-sports facility. This means that a total of 1,10,078 square metres with a permissible built-up area of 2,11,896.26 square metres could be monetised over the next few months.

Among the three new plots to go on the block, the one earmarked for academic purposes is 5,117.85 square metres with an FSI of 2. MMRDA is looking at fetching a minimum of ₹164.87 crore from this. For the 10,026.44 square metres of land reserved for a hospital, it hopes to draw in ₹322.99 crore and has made 2 FSI available. The plot for the clubhouse-cum-sports facility is far bigger at 52,138.43 square metres with a minimal FSI of 0.20 and a reserve price of ₹167.96 crore.

As of June, MMRDA was saddled with a debt of ₹1,03,622 lakh crore. In mid-September, it signed a loan agreement with the Power Finance Corporation to avail of ₹31,674 crore while earlier this month it was looking at raising ₹16,577 crore in debt for more infrastructure projects planned across MMR. These together take the consolidated debt burden on MMRDA to ₹1,51,873 crore.

In the last couple of decades, the development authority has extended lines of credit, grants-in-aid and reliefs of up to ₹6,000 crore to various urban local bodies within the MMR, recovery of which seems a distant reality.

Apart from land monetisation, MMRDA draws revenue from the state government through a levy of 1% metro cess on real estate transactions. It is yet to receive nearly ₹3,500 crore from the BMC and is also looking at raising ₹50,000 crore via bonds.

During the ongoing fiscal 2024-25, MMRDA has estimated receipts of ₹39,453 crore while its expenditure is estimated at ₹46,921.29 crore.