BMC Proposes ₹815.61-Crore Lease Of Lower Parel Asphalt Plant Land; Indivara Realty Tops Bidding

Mumbai: The BMC's plan to monetize its prime Lower Parel land has reached the approval stage, with the civic body seeking its Improvement Committee's nod to lease out the 11,299.53-sq-meter asphalt plant plot for Rs 815.61 crore. Indivara Realty Pvt Ltd has emerged as the highest bidder. The proposed arrangement entails a 30-year lease, potentially extendable by another 30 years under the prevailing policy.

BMC Plans To Monetise Prime Lower Parel Land

The plot currently houses an old asphalt mixing plant and a garage belonging to the BMC Transport Department. The civic administration has said the asphalt plant is no longer needed, as most of the city's roads are now being constructed using cement concrete. The transport department's garage is also proposed to be shifted to another location. The plot, situated in the BMC's G/South ward and identified as land parcel No. 1629 (part), is owned by the BMC.

The civic body had initially put 10,847.74 sq meters of land on the block, fixing its base price at Rs 755 crore. However, after the state government's Urban Development Department (UDD) revised the land area, it increased it to 11,299.53 sq meters, resulting in a corresponding increase in the premium payable by the successful bidder. In the auction, Indivara Realty quoted Rs 783 crore and emerged as the highest bidder. Sheth Homes Dwellings Pvt Ltd submitted the second-highest bid of Rs 769 crore, while Saroj Landmark Realty LLP quoted Rs 760 crore, as per the proposal submitted by the BMC administration.

Land Area Revised Following Urban Development Department Notification

The tender process was initiated in April 2025, with bids from three eligible parties. Indivara Realty's original bid of Rs 783 crore was 3.71% above the base price of Rs 755 crore. The land area was subsequently revised after the UDD, through a notification dated February 18, 2026, canceled the existing Development Plan reservation for the asphalt plant and specified the affected land area as 11,299.53 sq meters.

The revised calculation has pushed the premium payable by Indivara Realty from ₹783 crore to ₹815.61 crore. The developer has already deposited the balance earnest money of ₹6.79 crore, in addition to the initial payment made when submitting its bid. Under the revised payment terms, the developer must clear the premium in five equal installments of approximately ₹163.12 crore each.

The first payment is due within 30 days of the Letter of Intent (LoI), with subsequent installments at 60-day intervals and the final payment due within 270 days. While the BMC has allowed an upfront payment option, it will not offer a discount. The lease deed will be executed only after the developer pays the entire ₹815.61-crore premium. The proposal allows the developer to use the plot for residential or non-residential purposes, while ownership will remain with the BMC, the proposal states.

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