BMC to Auction Prime Plots in Mumbai to Fund Infrastructure Projects

The Brihanmumbai Municipal Corporation (BMC) has announced plans to auction three prime plots in the island city of Mumbai, a move aimed at raising funds for the city's numerous ongoing infrastructure projects. This marks a significant step for the BMC, as it is the first time the civic body is leasing out its land assets, a strategy previously employed by agencies like the Mumbai Metropolitan Region Development Authority (MMRDA) and the Maharashtra State Road Development Corporation (MSRDC), which have monetized their land banks to finance large-scale projects.

One of the prime plots being auctioned is located in Malabar Hill, an affluent area of South Mumbai. Another is situated near Crawford Market, a historical landmark in Mumbai, where the Chhatrapati Shivaji Market once stood. The third plot is at Lower Parel, a commercial hub known for its rapid urbanization. These plots, owned by the BMC, are expected to attract significant interest due to their locations in high-demand areas of the city.

According to BMC's tender documents, these three plots will be leased for an initial period of 30 years, with a provision to renew the lease for another 30 years. The leasing model allows the BMC to retain ownership of the land while generating long-term revenue from developers or companies that lease the land. This is a change from the BMC’s previous approach to land management, where unused plots remained dormant, often vulnerable to encroachment or neglected due to lack of utilization.

The plot near Crawford Market, which used to house the Chhatrapati Shivaji Market, once had a four-storey building that accommodated several BMC offices. The ground floor was used by the fisher community as a wholesale market. However, the building was demolished in 2015 after it was declared unsafe. Despite the demolition, local fish sellers continue to operate on the ground floor. The BMC has long faced challenges in managing this site, and leasing the land is seen as a practical solution to maximize its value while preventing further disputes or illegal occupation.

Another plot up for auction is located at Malabar Hill, which currently houses a Brihanmumbai Electric Supply and Transport (BEST) receiving station. According to the BMC’s tender, this facility is in a dilapidated state. While BEST has been operating on the land, the BMC remains the legal owner of the plot. The decision to lease the land comes after BEST agreed to return the plot to the BMC, making it available for commercial use.

The third plot, located in Lower Parel, houses an asphalt plant and a BMC testing laboratory. Like the other two properties, this plot holds substantial commercial value due to its location in one of Mumbai’s most developed business districts. The BMC has not specified the size of the plots or the minimum bidding price in the tender documents, but it is expected that the auction will generate considerable interest from developers and companies looking to capitalize on Mumbai’s growing commercial real estate market.

BMC executive engineer Lalitkumar Shah, who issued the tender, confirmed that the properties have been underutilized, and the auction presents an opportunity to commercially exploit these prime assets. Shah expressed optimism about the interest these plots would generate. Another BMC official explained that, without proper utilization, these plots could risk encroachment, or there could be demands to use them for rental housing, a situation the BMC wishes to avoid.

The BMC’s decision to auction these properties comes at a time when the civic body is heavily invested in several infrastructure projects, including the Dahisar-Mira Bhayander stretch of the coastal road and the Mulund-Goregaon tunnel. These large-scale projects require substantial financial resources, and the BMC sees the auction as a way to raise the necessary funds without compromising public reservations or relying on government grants. BMC commissioner Bhushan Gagrani has also emphasized the need for fiscal discipline, implementing cost-cutting measures and halting wasteful expenditures.

The auction of these prime plots represents a strategic move by the BMC to leverage its land assets in the face of growing financial demands for infrastructure development. With Mumbai’s real estate market continuing to thrive, the auction is expected to generate substantial revenue, helping the city achieve its ambitious development goals.