Mumbai: The BMC's proposal to lease out the 11,299.53-sq-meter asphalt plant plot at Lower Parel for Rs 815.61 crore to a private developer has been strongly opposed by the Congress party. Mumbai Congress President and MP Varsha Gaikwad has demanded immediate cancellation of the proposal.
The tender process, initiated in April 2025, attracted three eligible bidders. Indivara Realty’s initial bid of Rs. 783 crore was 3.71% above the base price of Rs. 755 crore. Following the state government's Urban Development Department's February 18, 2026 notification revising the plot area to 11,299.53 sq metres, the lease premium was increased to Rs. 815.61 crore.
Gaikwad pointed out that the land, currently used for an asphalt mixing plant, has an estimated market value of nearly Rs. 9,000 crore. However, the proposed deal offers the BMC a one-time premium of just Rs. 815.61 crore for a 30-year lease, with an option for a further 30-year extension.
Highlighting the plot’s proximity to a Metro station and its significant commercial development potential under Transit-Oriented Development (TOD), she argued that the BMC should develop the land itself to maximise public revenue rather than hand over a valuable public asset to a private developer.
Referring to the BMC’s 2026–27 financial position, Gaikwad said the civic body has financial liabilities of approximately Rs. 2.44 lakh crore, against which Rs. 41,390 crore has been allocated in the annual budget. The proposed lease premium accounts for just 0.33% of these liabilities. She cautioned that leasing valuable municipal land without adequately assessing its long-term financial potential could undermine public assets and affect the BMC’s ability to meet essential civic obligations, including staff salaries, contractor payments, infrastructure maintenance and public services.
"Land belonging to Mumbai must be utilised in the interest of Mumbaikars, and the financial benefits generated from it must accrue to the citizens," Gaikwad asserted.
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