Image Credits: DNA

The MMRDA (Mumbai Metropolitan Region Development Authority) is all set to process the auction of land in BKC (Bandra-Kurla Complex) with an aim to fund its some of infrastructure projects.

In past MMRDA has funded many infrastructure projects by selling different land parcels, but after 2007 its fist time when MMRDA decided to invite bids to fund its infrastructure projects. According to spokesperson of MMRDA, “We intend to sell 21,807 sq mtrs of residential space in G block (north) of BKC and 12,500 sq mtrs of commercial space in G block of BKC. MMRDA has decided to appoint consultants for the valuation and documents preparation in the process of bidding”. In Mumbai, the FSI (floor space index) for commercial and residential space is 4 and 3 respectively.

It is expected that in next few months consultant will prepare the whole road map for bidding invitation and rest of the process. According to one of the MMRDA official, “We hope that auction will start at the beginning of second quarter of 2016. We expect that we will get rate of Rs 4 to 5 lakh per sq mtrs, however; it also depends on the available built-up area, as there are more restrictions, due to which we have sought relaxation”.

MMRDA is planning to lay 118km of Metro lines with the cost of Rs 35,000 crore and MMRDA has already sanctioned work for Dahisar (Rs 5,566 cr) to DN Nagar Metro; Phase I, Metro II (Rs 4,737 cr) and Dahisar-East to Andheri-East Metro VII corridor. It will also have the pride for MMRDA to fund Rs 23,136 cr for Metro III or Colaba-Bandra-Seepz and its proposed extension between Kanjurmar-Seepz, which will cost around Rs 1,700 cr. However; it is expected that for Metro III it will get the bank loan for 88 per cent of the total cost from Japan International Cooperation Agency.

According to officials, “From many years we did not sell land because of downturn in the market, but now scenario is getting better and we need funds for crucial and most important projects. Earlier, MMRDA had tried to sell land with the rate of Rs 3 lakh per sq mtrs, but many felt that price was too high in 2010”.