After a long hiatus, MMRDA plots to go under the hammer

The plots would be roughly 5,000 sq metres in size. The development authority is still in the process of identifying plots to sell, but intends to come out with an advertisement this month, Madan said. He, however, did not want to put a figure to the likely earnings from the auctions. “The last land sale was a long time ago and the situation has changed since then. Real estate consultancy firm CBRE is helping us determine an appropriate reserve price for the auction,” the metropolitan commissioner said.

The development authority’s last successful land auction was in 2008. Thereafter, it had attempted to sell a plot in the Bandra Kurla Complex’s G Block with a reserve price of Rs 3 lakh per square metre, which was determined on the basis of the rates it received during previous auctions. However, the plot did not receive even a single bid due to a sluggish real estate market. The MMRDA then decided to temporarily put a stop to auctions, which officials refer to as the authority’s “family silver.”

A senior MMRDA official said the authority has about 30 hectare of unsold land in Bandra Kurla Complex.  If the Floor Space Index is considered, the MMRDA has about 150 hectare of unsold built-up area, the official added.

In the near future, the development authority has planned a 118-km additional Metro rail network in Mumbai at Rs 35,400 crore. Besides, major projects as Sewri-Nhava Sheva Mumbai Trans Harbour Link, growth centres in Mumbai Metropolitan Region and a Virar-Alibaug Multi Modal corridor are also on the cards. The MMRDA is in the process of tying up with international agencies for funding for some of these projects, and also has Rs 12,000 crore in bank deposits other than its land bank to rely on, a senior official from the authority said.

manasi.phadke@expressindia.com