MUMBAI: MMRDA has received a setback in its bid to sell off transfer of development rights (TDR). The agency has been able to dispose of only 17% of the total 86,823 sq m put on sale.
The agency had expected to garner Rs 315 crore through the sale of TDR, which it generated from slum redevelopment projects in the suburbs when it invited bids on April 6.
“We have been able to get around Rs 55 crore from the sale of TDR. The per sq m amount that we got is around Rs 36,000 to Rs 39,000,” said MMRDA commissioner UPS Madan said.
Another MMRDA official said, “We will go for another round of sale for the balance TDR. The response this time round has been a let down due to sluggishness in the real estate market.”
MMRDA is selling its real estate assets to fund infrastructure projects, including the Metro corridor. On March 31, MMRDA put on sale 12,500 sq m of land in BKC with an expectation that the deal will help the agency fetch Rs 1,500 crore.
MMRDA has no independent source of revenue nor does it get any support from the state government to fund the project. Its only source of earning is by way of selling land and TDR. MMRDA will require funds to execute big-ticket projects like Metro, Santacruz-Chembur Link Road extension, BKC-Chunabhatti link among others. It has plans to lay 118 km of Metro, which will cost Rs 35,000 crore. It will also have to provide Rs 23,136 crore for Metro III (Colaba-Bandra-Seepz).
Credits ET Realty