The Maharashtra State Road Corporation (MSRDC) plans to develop its prime 28-acre land parcel in Bandra Reclamation and is looking for a construction company for the big project. With a minimum expected windfall of Rs 8000 crores, MSRDC intends to implement a revenue-sharing scheme. The mixed-use site will combine commercial and residential areas, and the hired firm will create the complicated master plan. MSRDC intends to retain ownership while leasing for 60 years, with an option to extend the lease for another 30 years.
The Maharashtra State Road Corporation (MSRDC) is planning to develop a sprawling 28-acre land parcel in Bandra Reclamation along the Western Express Highway (WEH). MSRDC is actively seeking a construction / development agency to lead this transformative project. Within this vast expanse, 24 acres is meant for immediate development, while the remaining 4 acres await permissions for subsequent integration.
MSRDC envisions a substantial windfall, estimated at a minimum of Rs 8000 crores, from the eventual sale of developed areas within this strategically located parcel. The corporation plans to adopt a revenue-sharing model with the selected agency, marking a shift towards collaboration for mutual benefit.
MSRDC plans to create a mixed-use space, seamlessly blending commercial and residential zones. However, the detailed master plan for this integrated development will be crafted by the appointed agency, thereby bringing forth expertise and innovation in urban planning. The proposed mixed-use concept aligns with modern urban trends, aiming to optimize the utility of the land and cater to diverse urban needs, fostering a vibrant and dynamic community.
Ownership remains a key consideration in MSRDC's strategy. While the corporation aims to retain its rights over the land, it plans to grant a lease for a long period. The initial lease tenure is pegged at 60 years and this will be extendable for an additional 30 years, with the possibility of a further 9-year extension. All of this is subject to MSRDC's specified conditions. This leasing model aims to ensure a balance between long-term strategic control and providing the selected agency with sufficient operational flexibility.
The land handover is envisaged in two distinct phases. Phase I encompasses an area of 22596.38 sq. meters (over 5 acres), which will be taken up first. MSRDC commits to relocating its office space within 30 days of notice, ensuring a seamless transition. Phase II involves the transfer of the larger chunk—75925.26 sq. meters (over 18 acres)—currently occupied by a casting yard. This phase's handover is scheduled within four and a half years from the signing of the agreement, which is extendable by six months at MSRDC's discretion.
The projected completion deadline for the entire Bandra Reclamation project is set at 10 years, signaling MSRDC's acknowledgment of the complexity and scale of the endeavor. This phased timeline allows for meticulous planning, ensuring that each stage is executed with precision and adherence to quality standards. As with any large-scale development, unexpected challenges may arise, and the flexibility built into the timeline acknowledges this reality.
In a strategic move, MSRDC has sought concessions from the Government of Maharashtra, aiming for a 10% reduction in various premiums. The outcome of these negotiations will significantly impact the financial dynamics of the project. If these concessions are not granted, the agency chosen for the project will bear the associated costs. MSRDC officials have clarified that any additional expenses incurred will be factored into the revenue-sharing arrangement, emphasizing the corporation's commitment to financial prudence.
It is noteworthy that MSRDC had previously explored plans to monetize a 1.5-acre land parcel on Nepean Sea Road. However, as of now, this plan remains unrealized, underscoring the dynamic nature of real estate ventures and the various factors influencing their execution.
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