After a prolonged legal battle spanning nearly two decades, the redevelopment of the Century Mills land in Lower Parel has moved closer to reality, with the Brihanmumbai Municipal Corporation (BMC) receiving a top bid of Rs 1,351 crore from Peddar Realty Ltd for the project.
The civic body had floated a tender in December last year to lease the 6.17-acre land parcel for 30 years under a public-private partnership (PPP) model. Peddar Realty emerged as the highest bidder among four participants, including K Raheja Corp Pvt Ltd, Keystone Realtors Ltd and Shapoorji Pallonji Real Estate Pvt Ltd.
The bid amount is among the highest received for redevelopment of a former mill land parcel in Mumbai in recent years. However, it remains below the Rs 1,505 crore paid for the 8.37-acre Bharat Textile Mills land in 2010. The reserve price for the Century Mills tender was fixed at Rs 1,348 crore, while the current market value of the plot is estimated at around Rs 660 crore.
Sanjog Kabare, joint municipal commissioner (improvements), said, “Peddar Realty is the highest bidder among the four bidders. They have bid Rs 1,351 crore and the Century Mills land will be leased for 30 years. The proposal to appoint Peddar Realty will be placed before the improvements committee for approval, following which the contract will be awarded.”
The redevelopment project is expected to provide homes to around 650 families of former Century Mills workers. The existing site comprises 23 buildings with 476 tenements occupied by eligible mill workers’ families, along with 10 shops. The BMC plans to develop a high-rise residential complex similar to MHADA redevelopment projects, where eligible occupants will receive rehabilitation homes and additional units will be sold commercially.
For residents awaiting rehabilitation for years, the development marks a significant milestone. Rajesh Parab, a Century Mills tenant, said, “The mill shut in December 2006 and at least 250 mill workers have died waiting for their homes to be redeveloped. If the project is delayed further, many of the remaining families may never get to see the outcome of the struggle. They have spent decades living in cramped 180-sq ft rooms and want to move into their redeveloped homes during their lifetime.”
Officials said the new flats could measure around 405 sq ft, depending on the redevelopment model selected. The developer may opt for provisions under DCPR 33(23) or DCPR 33(9), which apply to cluster redevelopment of old and dilapidated structures.
The redevelopment process began after the Supreme Court upheld BMC’s ownership of the land, ending a long dispute with Century Spinning and Manufacturing Limited. The land was originally leased to the company in 1927, with a condition to provide housing for mill workers. After the lease expired in 1955, ownership was meant to return to the civic body. The Supreme Court’s decision last year cleared the way for BMC to proceed with redevelopment.
Source: Hindustan Times
