MUMBAI: To fund the execution of infrastructure projects, the Mumbai Metropolitan Region Development Authority (MMRDA) has now put on sale 37,118 sq m of transfer of development rights (TDR).
TDR is a development right given to builders. It is usually generated in exchange for surrendering land for public amenities or carrying out community rehabilitation work.
The TDR on sale is spread across four locations generated by executing slum rehabilitation schemes in Goregaon and Jogeshwari.
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 sale of land and TDR.
In April, MMRDA’s offer for TDR sale generated less than the expected response. It was able to sell about 1% of the total 86,823sq mt put on sale. MMRDA earned around Rs 55 crore from TDR sale. The per-sq-mt amount MMRDA got was between Rs.36,000 and Rs.39,000 a sq mt.
In January, MMRDA sold only 1,500 sq m of TDR to private firms though it had offered to sell 30,000 sq mt due to “sluggishness in the real estate market”.
Now, MMRDA will require funds to execute big-ticket projects like Metro, Santacruz-Chembur link road extension, BKC-Chunabhatti link. It also plans to lay 118 km of Metro, estimated to cost Rs.35,000 crore. It will also have to provide Rs.23,136 crore for Colaba-Seepz metro.
Credits ET Realty