The Hindu Business Line : Real estate biggies eye Mumbai’s rail land project

Infra boost
RLDA has decided to let the private developer take the entire project structure on lease for 80 years against an upfront payment.
The proceeds of the project would primarily fund rail transport projects of Mumbai and Maharashtra.

Mamuni Das

New Delhi, Sept. 23 Real estate companies appear to be eyeing the commercial development on 45,371 sq. metres of railway land in Mumbai’s Western Express highway at Bandra-east.

The Rail Land Development Authority (RLDA) is executing the project and had recently held the pre-bid meeting. “About 10 players had attended the pre-bid meeting. They include Akriti, DLF, Emaar-MGF, Tata Realty and Infrastructure and a subsidiary of Reliance ADAG,” said sources in the know.

RLDA has decided to let the private developer take the entire project structure on lease for 80 years against an upfront payment. The reserve price has been fixed at about Rs 4,600 crore based on the Mumbai Metropolitan Region Development Authority rates.

The players attending the pre-bid meeting requested RLDA to take a re-look at the reserve price as it was on the higher side, it is learnt.

The proceeds of the project would primarily fund rail transport projects of Mumbai and Maharashtra.

To make the project attractive, the Maharashtra Government has doubled the floor space index (FSI) to four from two, which would allow the developer to commercially exploit a larger area.

The doubling of FSI was subject to condition that the entire benefit of incremental floor space should accrue to rail projects of Mumbai and Maharashtra in 2:1 ratio.

From the initially conceived FSI, one-third proceeds would accrue to rail projects in Mumbai, one-third to those in Maharashtra and one-third to projects in rest of the country.

RLDA has already bid out its first commercial land development project in Delhi with ABW Infrastructure winning the lease rights for 90 years to develop 11 hectares of vacant Railway land at Sarai Rohilla.

The private developer ABW Infrastructure had emerged as the highest bidder after quoting Rs 1,026 crore for commercial development of surplus land at Sarai Rohilla.

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