Samruddhi Corridor: MSRDC set to lease Nepeansea Road plot to raise funds

Neeraj Tiwari
The MSRDC is the nodal agency for the corridor, which is set to come up at an estimated cost of Rs 49,000 crore.(File)

LOOKING TO raise funds for its Mumbai-Nagpur Samruddhi Corridor project, the Maharashtra State Road Development Corporation (MSRDC) on Friday floated expression of interest to lease a plot on the Nepeansea Road in Mumbai.

The 1.54-acre plot, valued at Rs 500 crore, is set to be leased for 60 years. The MSRDC is the nodal agency for the corridor, which is set to come up at an estimated cost of Rs 49,000 crore.

Vijay Waghmare, MSRDC joint managing director, said: The state government has given the plot to the MSRDC to generate revenue and utilise it for the Mumbai-Nagpur Samruddhi Corridor. We have invited expression of interest. The land will be leased out for 60 years.

The MSRDC had demanded the plot and hence, we have handed it over to the authority. Now, the MSRDC will have to prepare rules and regulations before any development can take place on the land, an official from the revenue department said.

With the debt mounting on the public exchequer, the state had earlier adopted a policy of funding big ticket infrastructure projects through off-budget borrowings.

Not only MSRDC, the Mumbai Metropolitan Region Development Authority (MMRDA) has also been trying to lease its properties to generate revenue for its infrastructure projects.

On August 21, the MMRDA had floated a tender to lease a land parcel at the Bandra Kurla Complex (BKC), seeking to earn a revenue of Rs 1,033 crore. The land parcel in question is an amalgamation of two plots C-44 and C-48 in BKC s G Block.

The MMRDA had, in March, too, tried to lease the two plots separately but found no takers.

According to MMRDA, the tender for the plot will remain open from August 26 to October 14. While the combined area of the plots is 6,018.90 sq m, a permissible built-up area (Floor Area Ratio) with 5 Floor Space Index (FSI) will be nearly 30,000 sq m. MMRDA had reserved a price of Rs 3.44 lakh per sq m.

The plots are adjacent to each other. BKC falls under the airport funnel zone (buildings taller than those located at the airport are not permitted). Now, as the two plots have been combined, an investor can avail more built-up area, said a senior MMRDA official.

In March, MMRDA had floated a tender for leasing its three plots. According to the tender document, the first plot had an area of 12,486 sq m and a permissible built-up area of 65,000 sq m. However, in the backdrop of a sluggish real estate market, builders did not show interest in it.

After extending the dates thrice, the MMRDA finally received a response from Japanese conglomerate Sumitomo for three-acre plot. It was leased to the conglomerate for Rs 2,238 crore. The deal was one of the biggest investments made by a foreign firm in the Maharashtra realty sector.

However, the two other plots found no takers. While the first one had an area of 3,000 sq m with total built-up area of 12,000 sq m, the other had an area of 2,961 sq m with built-up area of 12,000 sq m. These two plots C-44 and C-48 in BKC s G Block have now been amalgamated and put up for lease again.