Citing poor market sentiment MMRDA shelves BKC land sale.Posted on : 19 Mar, 2012
Mumbai: Owing to uncertainty in the real estate sector, the Mumbai Metropolitan Region Development Authority (MMRDA), which presented a deficit of Rs 1,760 crore for its FY13 budget, is not planning to lease its vacant plots in the prime Bandra-Kurla Complex area.
“There is uncertainty in the real estate market and auctioning land in this scenario will not make sense till we get incremental value on our land stock. We will rather prefer to maintain the plots as landbanks,” MMRDA commissioner Rahul Asthana has said.
Nearly 20 hectare plots in the BKC are still lying vacant and the authority is awaiting a turnaround in the sector, so that it can obtain higher bids.
The authority has presented a Rs 4,825 crore budget for FY13, with a deficit of Rs 1,760 crore.
“We have enough deposits to spend on our infrastructure projects. Therefore, we do not require to auction land for generating funds. Besides, if we keep the stock as landbank, the incremental value, which we will get, will be much more than what we may get if we auction the land at the current rates,” Asthana said.
At present, MMRDA has a corpus of Rs 9,200 crore that it has committed to spend on its projects, Asthana said, adding the authority has not made any major land deals since the last two years citing uncertainty in the realty sector.
Meanwhile, the MMRDA has also proposed a floor space index of 4 for the future residential projects coming up in the BKC area with a view to increase revenues.
“At present, we offer 3 FSI for residential plots, while 4 FSI for commercial projects. But lately, we have observed that there is more demand for residential space, compared to commercial space. Therefore, we have submitted a proposal to the government to allow 4 FSI for residential projects coming up in the BKC area,” Asthana said.
This move will bring in more revenues for the authority, which can then be routed for major infrastructure and transport projects, he said.
“We will also make a presentation to the BMC to get their view on our proposal. We have proposed to offer 4 FSI only for new projects,” Asthana added.
SOURCE: Accomodation Times.