In a first, Railways to long-lease prime plot at Mahalaxmi to private developers
According to senior rail officials, the Rail Land Development Authority has been given the mandate to consider ways to commercially exploit this land space
MUMBAI: Indian Railways has identified the first piece of railway land in Mumbai to be leased out for 99 years to a developer. This over-two-acre empty plot, neighbouring the infamous Shakti Mills, is located in Mahalaxmi, faces the Race Course and is parallel to the Western Railway (WR) line.
According to senior rail officials, the Rail Land Development Authority (RLDA) has been given the mandate to consider ways to commercially exploit this land space. The size of the uneven hexagonal plot is 10,801.700 square metres or 2.669 acres (1.08 hectares).
“It’s an empty plot of railway land, which is covered with weeds and shrubs,” said a senior rail official. “A prime piece of property is being wasted. So the RLDA is seeking prospective contractors who can develop it on a 99-year lease period.”
The estimated asking price of the railways is ₹805 crore. Railways sources said that considering the prime location, they expected anything upward from the reserve price. “The plot has an FSI of 4.05,” said another rail official. “We expect this land to be lucrative for developers especially since luxury housing is becoming increasingly popular in Mumbai.” Real estate experts said the area was already a hotspot for leading developers constructing skyscrapers with residential and commercial office spaces.
The railway ministry has proposed to give over 47.5 acres of rail land at Matunga and Mahim for the Dharavi Redevelopment Project (DRP), of which 29 acres have been handed over on a 99-year lease. The rail authorities rue the fact that a plot, which is a veritable goldmine, has been given away for a mere ₹2,800 crore, of which only ₹800 crore has been received so far.
The DRP is a larger public interest project but the Mahalaxmi plot is the first one that will be long-leased to a private builder for 99 years. Rail officials said that tenders had been called for and an online pre-bid meeting was scheduled for October 3. October 4 is the deadline set for submitting e-bids.
The railways are also looking to hive off 110.46 hectares at Grant Road, Tardeo, Parel, Bandra East and West, Mahalaxmi and Carnac Bunder among other locations through the RLDA. Among their ambitious plans is a proposed skyscraper at Parel which could go as high as 135 storeys.
A combination of premium housing, commercial shopping complexes, entertainment centres, service apartments, high-end hotels, amusement parks, office spaces, multimodal parks, storage and handling facilities has been proposed at all the identified locations. The money generated will be used for additional public amenities at railway stations, manufacturing coaches, construction and redeveloping railway stations and for the overall benefit of passengers.