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MMRDA finally gets a buyer for its BKC plot; may fetch ₹2,300cr

Authority will again extend deadline for two plots that didn’t find a bidder this time

mumbai Updated: Jun 15, 2019 00:33 IST
Tanushree Venkatraman
Tanushree Venkatraman
Hindustan Times
Mumbai,MMRDA
The MMRDA wants to lease plots to fund its metro projects in and around the city.(HT FILE )

Even after extending the deadline to submit bids for three plots in Bandra-Kurla Complex (BKC), the Mumbai Metropolitan Region Development Authority (MMRDA) has received only one bid for one of the plots near the stadium. While officials didn’t reveal the name of the bidder as the process is on, the MMRDA hopes to earn a base price of ₹2,300 crore from the sale of the 12,500-sqm plot, C-65, in G block.

BKC is one of the topmost business districts in the state governed by the authority. The MMRDA wants to lease plots to fund its infrastructure projects in and around the city. For instance, the amount MMRDA can get from this plot (₹2,300 crore) can almost fund a third of the upcoming Metro-6 (Swami Samarth Nagar-Vikhroli), which is estimated to cost ₹6,716 crore. For the other two plots, MMRDA is considering extending the deadline again to get responses.

A senior official from the metropolitan authority said, “With projects such as the bullet train and Metros coming up in the area, we hope to get more responses [for the plots].”

The MMRDA is currently executing metro projects worth ₹1 lakh crore in the metropolitan area. It has been looking at various means to generate funds for the project. The MMRDA has achieved financial closure for four of the six under-construction Metro lines through loans from the Japan International Cooperation Agency (JICA) and Asian Development Bank (ADB), and Central assistance. In all, the MMRDA is looking to construct 11 Metro lines in the city by 2024. Recently, MMRDA commissioner RA Rajeev wrote to the Brihanmumbai Municipal Corporation (BMC) to share 25% of the total cost of the Metro project.

The MMRDA is undertaking redevelopment around the upcoming Metro stations to cross-subsidise the cost. Apart from this, the state also introduced an additional one per cent stamp duty surcharge on property deals, with the revenue to be transferred to MMRDA for its infrastructure projects.

AV Shenoy, a transport expert from Mumbai Vikas Samiti, called it haphazard planning of the state government. “If the World Bank was funding the project, the authority would have had to submit the whole finance model before getting the project started. Right now, so many projects have been announced without any finance model in place,” he said.

First Published: Jun 15, 2019 00:32 IST