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The Brihanmumbai Municipal Corporation’s Improvement Committee has approved the lease of about 15 acres of reclaimed land at the former Mulund dumping ground to Navbharat Mega Developers Pvt Ltd, the special purpose vehicle implementing the Dharavi Redevelopment Project. The five-year lease will allow the company to establish a casting yard, precast element manufacturing facility and ready-mix concrete plant for the redevelopment works. The proposal had earlier faced objections over environmental and civic concerns, but was cleared by the panel on August 14 following further consideration. The BMC is expected to receive about INR 103.47 crore in gross rent.
The Brihanmumbai Municipal Corporation’s Improvement Committee approved on Friday, August 14, a proposal to lease about 15 acres of reclaimed land at the former Mulund dumping ground to Navbharat Mega Developers Pvt Ltd for five years, enabling the Dharavi Redevelopment Project to establish construction facilities in Mumbai.
The land, measuring about 60,703 sq m, will be used for a casting yard, precast element manufacturing facility and ready-mix concrete (RMC) plant required for the Dharavi redevelopment project. Navbharat Mega Developers is the special purpose vehicle appointed to implement the project and is primarily owned by Adani Properties.
The proposal had previously faced opposition within the civic body. Shiv Sena (UBT) and Congress members raised concerns over the use of civic land for project-related infrastructure and questioned whether the plot would eventually be returned to the BMC. Members also raised concerns about the impact of RMC truck movement on traffic in Mulund.
The proposal had been sent back by the Improvement Committee in late July after members raised technical and environmental concerns. The committee had sought clarification on whether the proposed activities could affect nearby residents. The latest approval follows its reconsideration of the proposal.
The site forms part of the former Mulund landfill, where biomining and land reclamation activities have been under way. At the time the proposal was examined, the 15-acre parcel was estimated to contain around 2.5–3 lakh metric tonnes of legacy waste. The lease arrangement requires the developer to undertake remediation, soil stabilisation and levelling before the site can be used for the approved construction facilities.
The BMC has fixed the lease rental at INR 252 per sq m per month, with an annual escalation of 6%. On this basis, the gross rental over the five-year period is estimated at around INR 103.47 crore. Navbharat Mega Developers will undertake remediation at an estimated cost of INR 20.04 crore, which will be adjusted against the lease rental after verification by the BMC’s chief engineer for solid waste management. The net rental to the civic body is expected to be about INR 83.44 crore, while the total amount payable including 18% GST is around INR 100 crore.
Under the proposed payment arrangement, the developer will pay six months’ rent along with GST in advance after taking possession. The remediation expenditure will subsequently be adjusted against rental dues over the following 14 months, after which the full rent, including annual escalation, will apply for the remaining lease period.
The plot will be handed over on an “as is where is” basis and may be used only for the specified facilities. The developer will also be responsible for obtaining applicable statutory and environmental clearances and for scientifically processing the legacy waste in accordance with the Solid Waste Management Rules, 2016. The lease conditions also require environmental monitoring, CCTV surveillance, access controls and safety infrastructure at the site.
The approval follows the BMC’s earlier decision to make 124 acres of the Deonar dumping ground available for the Dharavi Redevelopment Project, while the Mulund parcel is intended specifically to support construction-related activities for the project.
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