Mumbai's Nariman Point Metro Land Project Estimated to Cost ₹7,000 Crore.

The Mumbai Metro Rail Corporation (MMRCL) has established a minimum development cost of ₹5,173 crore for a prime 4.2-acre land parcel in Nariman Point, Mumbai's business hub, as outlined in the key terms of a global tender. This figure does not include the land acquisition cost, estimated to be around ₹2,000 crore, and encompasses any additional premiums that must be paid to the authority.

To be eligible to bid for the 90-year lease of the plot, interested developers must demonstrate a minimum net worth of ₹1,500 crore and have a proven track record of executing projects worth ₹6,000 crore over the past decade. Additionally, any bidding entity must showcase net deployable capital of ₹3,000 crore.

This marks the first time a land parcel in this strategically located commercial zone is being auctioned since its establishment in the early 1970s. According to the bid specifications, the successful project developer is required to provide approximately 113,000 square feet of ready commercial space to MMRCL. The proposed development could yield nearly 1.46 million square feet, leading to an estimated total revenue potential of around ₹10,000 crore, contingent on the development mix proposed.

The tender documents indicate that consortiums, as well as independent realty developers and financial institutions, are eligible to bid for the project. Pre-bid meetings are scheduled for October 28, with the final bid submission date set for November 27.

Regarding the payment of the lease premium for the development license and lease grant, the chosen bidder can opt for either an upfront payment structure or a deferred payment plan. Under the upfront option, the bidder may pay the entire lease premium to the authority before signing the development agreement. Alternatively, the deferred payment method allows the selected bidder to pay at least 50% of the upfront cost before the agreement is finalized.

ET