Mumbai's realty sector has got a much-needed boost, as nearly 4,500 sq mt of land in Bandra east situated adjacent to the western express highway will be thrown open for commercial exploitation. This was possible after Maharashtra's revenue department vacated the stay on the said land and directed the Mumbai suburban district collector to carry out measurement and demarcation. The commercial exploitation to be undertaken by Railway Land Development Authority (RLDA) with the help of consultants would partially fund the Rs 5,300 crore Mumbai Urban Transport Project-II (MUTP-II), which envisages improvement in the suburban rail transport system.
Officials at the Mahrashtra government and Mumbai Rail Vikas Corporation (MRVC), a nodal agency responsible for various projects under MUTP-II, projected that about Rs 2,500 crore would be mobilised through commercial exploitation of the Bandra land. The proposal was initially approved in 2008, but some citizens disputed the ownership of the land as soon as RLDA invited bids for its commercial exploitation in September 2008.
Rakesh Saksena, managing director, MRVC welcomed the government's decision. However, he told Business Standard, "There are a few formalities that need to be completed. Based on the revenue minister's directive, we will need to seek the Bombay High Court's approval, since Western Railway had approached it against the state government. The state government has asked the Mumbai suburban district collector to complete the measurement and demarcation within two weeks."
Prabhat Ranjan, MRVC's chief public relations officer said commercial exploitation of the Bandra land would fund nearly 40 per cent of MUTP-II. He added that some of the projects include fith and sixth lines between Chhatrapati Shivaji Terminus (CST) and Kurla, sixth line between Mumbai Central and Borivli, expansion of harbour rail service up to Goregaon, station improvement and tresspassing control scheme, completion of DC to AC between CST and Thane.
Yomesh Rao, director, YMS Consultants said "The opening up of Bandra land for commercial exploitation will change the dynamics of Bandra east which is situated nearer to the Bandra Railway Terminus and also to the airport. Currently, the realty price in Bandra east (near the railway station) is about Rs 20,000 a square foot, while it is Rs 27,000 sq ft for residential purpose in the MIG Colony and Rs 20,000 to Rs 25,000 per sq ft in the Bandra-Kurla Complex." According to Rao, there are locational advantage and it is a huge plus point.
Moreover, Paras Gundecha, president, MCHI-Credai said that commercial exploitation of Bandra land is a good news both for the realty sector and the government. "The fund mobilisation will help the implementation of various railway projects. At the same time, the realty sector will be able to tap opportunities in the residential and commercial segments," he added.