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The Brihanmumbai Municipal Corporation (BMC) has reopened the bidding process for two key plots-Chhatrapati Shivaji Maharaj Market in Fort and the Worli Asphalt Plant plot-in an effort to generate revenue. The civic body has set a target to raise INR 1,183 crore through a 30-year lease of these parcels. The base prices have been reduced by nearly 70% compared to the earlier bids that failed to attract interest. The revised prices are now based on the approved zonal Floor Space Index (FSI) from the Development Plan, rather than the maximum usable FSI. This step is part of the BMC's strategy to address financial pressures stemming from ongoing infrastructure projects and to expand its revenue sources.
The Brihanmumbai Municipal Corporation (BMC) has once again invited bids to lease two significant plots-Chhatrapati Shivaji Maharaj Market in Fort and the Worli Asphalt Plant plot-in its continued endeavour to boost revenue. The civic authority is targeting earnings of INR 1,183 crore from the 30-year lease agreement for these parcels of land. Advertisement
On this occasion, the BMC has considerably lowered the base prices, by nearly 70%, compared to the previous bidding process which failed to attract any participants. During December last year, the civic body had opened tenders for three plots-Chhatrapati Shivaji Maharaj Market in Fort (near Crawford market), the Worli Asphalt Plant plot, and the BEST substation plot situated in Malabar Hill.
Notable companies like L&T, Godrej Properties, Welspun World, H N Safal, Runwal Developers, DB Realty and representatives of architects had shown an interest earlier in the pre-bid meeting on November 12 to discuss the auction and acquire these lands on a 30-year lease. However, no bids had been submitted at that time because of the high base price.
A BMC official mentioned that they had earlier calculated the base price based on the maximum usable Floor Space Index (FSI). The official explained that bidders had objected to this approach, as fully utilising the FSI depended on several factors. He further stated that this time, the bid prices had been determined in accordance with the approved zonal FSI as laid out in the Development Plan.
The fresh bidding process has been reopened exclusively for the Chhatrapati Shivaji Maharaj Market and Worli Asphalt Plant plots. The BMC clarified that the Malabar Hill substation plot was excluded from this round as BEST had raised objections to its lease.
As per the tender document, the base price for the Chhatrapati Shivaji Maharaj Market plot, measuring 8,116.11 square metres, has now been revised to INR 428 crore, a significant reduction from the earlier valuation of INR 2,069 crore. Similarly, the Worli Asphalt Plant plot, spanning 10,847 square metres, has been priced at INR 755 crore, down from INR 2,175 crore quoted in the previous tender.
Leasing out these key plots forms part of the BMC's broader strategy to establish alternative streams of income. This is the first time that BMC is leasing out its plots for 30 years with a renewal of another 30 years, similar to institutions like MMRDA and MSRDC monetising their land banks to raise money for the infrastructure projects implemented by them. The proceeds from these sales were expected to fund various infrastructure projects initiated by the civic body. Should this auction prove successful, the civic body may consider putting additional plots on the market for bidding in the near future.
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