Mumbai: Blame it on the ongoing elections or the real estate slump or both, but the Mumbai Metropolitan Region Development Authority (MMRDA) has failed to attract a single lessee for three plots in a prime location — the Bandra-Kurla Complex (BKC).
There were no bidders for the plots, for which tenders were floated last month with a May 24 deadline, which has now been extended to June 30. The BKC has emerged as a financial hub, housing several corporate offices and international institutions.
Before the tender was floated on March 8, the MMRDA had amended its land-use policy in December 2018. According to the new policy, instead of reserving a plot only for commercial or residential use, developers would have a mixed use option. Thirty per cent of the commercial plot can now be used for residential construction.
According to MMRDA sources, the purpose of leasing these three prime plots, instead of selling them, was to generate revenue, around Rs 3,000 crore. The MMRDA had planned to utilise the funds generated from leasing out these properties for its ongoing metro and other projects in the region.
However, the authority claims that although no bidders were found, infrastructure projects will not be affected as it has already borrowed money from international financial institutions.
Currently, the MMRDA has undertaken infrastructure projects worth nearly Rs 1 lakh crore and since 2014, its expenditure has increased twofold. The plots are 12,486 sq metres (65,000 sq m built-up area), 3,000 square metres (12,000 sq m built-up area), and 2,961 square metres (12,000 sq m) in area.