Mumbai: BMC To Earn ₹103.47 Crore By Leasing Mulund Dumping Ground Land To Dharavi Redevelopment Project For 5 Years

Mumbai, July 28, 2026: The Brihanmumbai Municipal Corporation (BMC) is set to earn an estimated Rs 103.47 crore by leasing 15 acres of reclaimed land at the Mulund dumping ground to the Dharavi Redevelopment Project (DRP) for five years.

The land will be used to set up a casting yard, precast manufacturing unit, and ready-mix concrete (RMC) plant. The proposal was discussed at the Improvement Committee meeting on Tuesday and is expected to be approved at its next meeting.

Land To Be Leased For DRP

Under the proposal, 60,703 sq m of land will be leased to Navbharat Mega Developers Pvt Ltd, the state-appointed agency executing the project. The plot, where biomining is currently underway, still contains an estimated 2.5 lakh to 3 lakh metric tonnes of legacy waste, which will be removed before the site is handed over.

The BMC has fixed the lease rent at Rs 252 per sq m per month, adopting the rate already approved by its Bridges Department for casting yards used in infrastructure projects. With a 6 per cent annual escalation, the lease is expected to generate Rs 103.47 crore in gross rental income over five years.

Remediation Cost Adjustment

The developer will carry out site remediation at an estimated cost of Rs 20.04 crore, which will be adjusted against the lease rent after certification by the Chief Engineer (Solid Waste Management).

Following the adjustment, the BMC is expected to receive a net rental of Rs 83.44 crore, while the total payment, including 18 per cent GST, will be around Rs 100 crore.

The developer will pay six months' rent with GST in advance, with the remediation cost adjusted over the next 14 months, after which the full lease rent with annual escalation will become payable.

Developer's Responsibilities

The land will be handed over on an "as is where is" basis and can only be used for the approved facilities. Any extension of the five-year lease will require fresh approval from the competent authority.

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The developer will be responsible for obtaining all statutory and environmental clearances, scientifically processing the legacy waste in compliance with the Solid Waste Management Rules, 2016, and providing CCTV surveillance, access control, and other safety infrastructure at the site.

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