BMC to Earn ₹103.47 Crore by Leasing Mulund Land for Dharavi Redevelopment Project

15 Acres of Reclaimed Mulund Land to Support Dharavi Redevelopment Infrastructure

The Brihanmumbai Municipal Corporation (BMC) is set to generate an estimated ₹103.47 crore by leasing 15 acres of reclaimed land at the Mulund dumping ground to the Dharavi Redevelopment Project (DRP) for a period of five years. The land will be used to build key construction support facilities, including a casting yard, a precast manufacturing unit, and a ready-mix concrete (RMC) plant.

The proposal was reviewed during the Improvement Committee meeting and is expected to receive final approval at the committee's upcoming session.

Reclaimed Land to Be Used for Construction Facilities

According to the proposal, nearly 60,703 square meters of reclaimed land will be leased to Navbharat Mega Developers Pvt. Ltd., the state-appointed agency responsible for executing the Dharavi Redevelopment Project.

The leased site is currently undergoing biomining operations and still contains around 2.5 lakh to 3 lakh metric tonnes of legacy waste. This waste will be scientifically removed before the land is officially handed over to the developer.

Lease Expected to Generate Over ₹103 Crore

The BMC has fixed the lease rate at ₹252 per square meter per month, following the same pricing model already approved for casting yards used in other civic infrastructure projects.

With a 6% annual increase in rent, the five-year lease is expected to bring in approximately ₹103.47 crore in total rental income for the civic body.

Site Cleanup Cost to Be Adjusted Against Rent

As part of the agreement, the developer will carry out remediation and site preparation work at an estimated cost of ₹20.04 crore. This amount will be adjusted against the lease payments after the work is certified by the Chief Engineer (Solid Waste Management).

After deducting the remediation expenses, the BMC is expected to receive a net rental income of around ₹83.44 crore. Including 18% GST, the total payment under the lease agreement will be close to ₹100 crore.

The developer will also pay six months of rent along with GST in advance. The remediation cost will be adjusted over the following 14 months, after which the full lease amount, along with the annual rent escalation, will become payable.

Developer Must Follow Environmental and Safety Rules

The land will be handed over on an "as is where is" basis and can only be used for approved construction-related facilities supporting the Dharavi Redevelopment Project.

Any extension beyond the five-year lease period will require fresh approval from the competent authority.

The developer will also be responsible for obtaining all necessary statutory and environmental approvals. In addition, it must process the remaining legacy waste in line with the Solid Waste Management Rules, 2016, and install essential safety measures such as CCTV surveillance, access control systems, and other site security infrastructure.

Project Supports Dharavi Redevelopment While Creating Revenue for BMC

The proposed lease is expected to serve two important purposes—providing essential infrastructure for the Dharavi Redevelopment Project while generating significant revenue for the BMC. At the same time, the agreement includes environmental safeguards and site remediation measures to ensure the reclaimed land is prepared for long-term productive use.