Mumbai: Eligibility Norms Raise Concerns Among Developers For Prime 24-Acre Bandra Reclamation Plot Worth ₹30,000 Crore

Mumbai: Eligibility Norms Raise Concerns Among Developers For Prime 24-Acre Bandra Reclamation Plot Worth ₹30,000 Crore

The tender requires the developer to be worth Rs 15,000 crore.

Rahul MUpdated: Friday, January 19, 2024, 09:16 PM IST
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A 24-acre plot in Mumbai’s upscale Bandra Reclamation with a gross development value of Rs 30,000 crore has been put up for development but top city developers are questioning the eligibility norms in the tendering process. The tender requires the developer to be worth Rs 15,000 crore.

“The biggest of us will find it difficult to meet these norms. Imposing a financial criterion to have Rs 15,000 net worth in one single entity is restricting the opportunity to one or two builders. It appears that the tender has been custom made for a select few,” said a top builder whose representative attended the pre-bid meet hosted by JLL, a global property consultant, on Tuesday for the Maharashtra State Road Development Corporation (MSRDC) to discuss the process.

Another top builder on condition of anonymity said, “The technical and financial norms defined in the tender are unreasonable as compared to commercial terms that MSRDC has proposed.”

The representative added that the MSRDC wants only those builders whose minimum net worth is Rs 15,000 crore as on March 30, 2023. In addition, the tendering norm requires the developer to be a ‘single entity’ and not a joint venture. Plus they must have developed a project with a total built-up area of at least 2.6 million sq ft in the last 10 years.

“The norms are stringent because the developer is expected to pay Rs 8,000 crore to MSRDC over a period of 9-14 years”, he said.

The development of this plot, the location of which is in close proximity to Bandra Kurla Complex (BKC) and Worli, entails a mini township with potential to develop 45 lakh sq ft area.

According to sources, the top developers who attended the meet on Tuesday include Godrej Properties, Adani Realty, Sunteck Realty, K Raheja Corp, L&T Realty, Wadhwa Group, Runwal, Oberoi Realty, Lodha, Sattva among others. It is learnt that builders have requested MSRDC Board to relax the norms so as to enable more developers to bid for the project.

Meanwhile, local residents are opposing the development of a mini township in their area. They fear that the project will place tremendous pressure on infrastructure in the area and add to traffic congestion.

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