Bandra Reclamation Project: 'Deadline For Bids Extended But No Change In Norms,' Says MSRDC MD

Mumbai: There will be no relaxation or changes in the tender bid norms and eligibility criteria put up by Maharashtra State Road Development Corporation (MSRDC) for development of the prestigious 24-acre sprawl at Bandra Reclamation. However, the last date for submission of bids has been extended from January 30 to February 6, vice-chairman and managing director, MSRDC, Anil Kumar Gaikwad told the FPJ on Thursday.

Following a high level meeting of top MSRDC officials to discuss the 71-odd queries raised by top developers after the pre-bid meeting last week, Gaikwad said, “We have examined every query and have come to the conclusion that our process is strong and on track. There is no need for any changes.” Top builders had raised concerns about the bidding process; some of them alleged that MSRDC is favouring ‘one or two big developers’ and that the bids are ‘tailor-made for a select few”.

Open Competitive Bidding Process

Talking to the FPJ, Gaikwad maintained that the process is one of “open competitive bidding”. “Even an international developer can respond. So where is the question of favouring a few?” he asked.

As of now, the financial criterion of ₹15,000 crore net worth in one single entity will remain, another top MSRDC officer told the FPJ. “We will not allow joint venture (JV) options because our experience with JVs in the past has been bad. We are looking for financially and technically strong developers who will be able to undertake a project of this magnitude and scale and complete it on time,” Gaikwad added.

Revenue Sharing Model

He clarified that since this would be a revenue sharing model, MSRDC will be in the loop at every stage vis-a-vis revenue generation. “We are not selling or auctioning the land parcel. We are monetising it and are very much part of the project,” he said. In the revenue sharing model, the developer will have to pay ₹8000 crore and will also have to develop 50,000 sq ft area of office space and hand it over to MSRDC. A top official said the GST will also have to be borne by the developer.

Regarding concerns raised by activists about MSRDC monetising vast open public spaces, Gaikwad maintained, “We are strictly going by the DC rules. Our consultant JLL has informed us that it is possible and well within the framework of the regulations, and that we can come up with residential and commercial units here,” he said. A top officer, however, clarified that there are reservations for a cemetery and a promenade, which will remain. “We will be making provisions for these,” he said.

According to sources, the top developers who attended the meeting on Tuesday include Godrej Properties, Adani Realty, Sunteck Realty, K.Raheja Corp, L&T Realty, Wadhwa Group, Runwal, Oberoi Realty, Lodha, Sattva among others.