The Brihanmumbai Municipal Corporation (BMC) has proposed leasing nearly 15 acres of reclaimed land at the Mulund dumping ground to support the Dharavi Redevelopment Project (DRP). The land will be used for setting up a casting yard, precast element manufacturing facility and ready-mix concrete (RMC) plant, with the civic body expected to generate around Rs 103.47 crore in rental income over the five-year lease period.
The proposal, approved by the civic administration, will be tabled before the BMC’s Improvement Committee during its meeting on Tuesday. It involves leasing 60,703 square metres of land to Navbharat Mega Developers Pvt Ltd, the company appointed by the state government for executing the Dharavi redevelopment project.
The proposed site is part of the Mulund landfill, where biomining activities are currently underway. Although some sections of the dumping ground have already been reclaimed, the identified 15-acre plot still contains an estimated 2.5 to 3 lakh metric tonnes of legacy waste. Before being utilised, the land will require waste removal, environmental remediation, soil stabilisation and levelling work.
To determine the lease charges, the BMC considered various options and finalised the rate based on charges approved by its bridges department for casting yards associated with infrastructure projects. The lease rent has been fixed at Rs 252 per square metre per month, with a yearly escalation of 6%, resulting in an estimated gross rental income of Rs 103.47 crore over five years.
As part of the agreement, Navbharat Mega Developers will carry out site remediation work estimated at Rs 20.04 crore. This amount will be adjusted against lease payments after verification by the chief engineer of the Solid Waste Management department. After the adjustment, the BMC is expected to receive a net rental amount of Rs 83.44 crore, while the total payment, including 18% GST, will be approximately Rs 100 crore.
Under the proposed payment arrangement, the developer will pay six months’ rent along with GST in advance after receiving possession of the plot. The remediation cost will subsequently be adjusted against rental dues over the next 14 months, after which regular lease payments with annual escalation will apply.
The land will be handed over on an “as is where is” basis and will be used only for approved activities. “Any extension of the five-year lease will require fresh approval from the competent authority,” said an official.
The developer will also be responsible for securing mandatory environmental approvals from agencies including SEIAA, MPCB, MCZMA and MoEF&CC, wherever required. It will also have to scientifically process legacy waste as per the Solid Waste Management Rules, 2016, maintain environmental compliance and install safety measures such as CCTV surveillance and access control systems at the site.
Source: The Times of India
