BMC Eyes Mulund Land for Dharavi Redevelopment

Mumbai’s ambitious Dharavi Redevelopment Project (DRP) has moved a step closer to securing crucial infrastructure support, with the Brihanmumbai Municipal Corporation (BMC) proposing to lease 15 acres of reclaimed land at the Mulund dumping ground. The land is intended to facilitate construction-related activities for one of the country’s largest urban redevelopment initiatives while also generating revenue for the civic body.

Proposal Heads for Approval

The proposal, which has already received administrative clearance, is scheduled to be placed before the BMC’s Improvement Committee for approval.

Under the proposal, 60,703 sq m of land will be leased to Navbharat Mega Developers Pvt Ltd, the agency appointed by the Maharashtra Government to execute the Dharavi Redevelopment Project, for a five-year period.

The leased parcel will be utilised for establishing a casting yard, a precast element manufacturing facility and a ready-mix concrete (RMC) plant to support redevelopment works.

Revenue Model Finalised

The BMC has proposed a lease rental of Rs 252 per sq m per month, with a 6% annual escalation. Based on this structure, the civic body expects to generate approximately Rs 103.47 crore in gross rental income over the five-year lease period.

However, the developer will undertake site remediation at an estimated cost of Rs 20.04 crore, which will be adjusted against the lease rental after verification by the Chief Engineer (Solid Waste Management).

Following this adjustment, the BMC is expected to receive a net rental of Rs 83.44 crore, while the total amount payable, including 18% GST, will be around Rs 100 crore.

Land Requires Extensive Remediation

The proposed land parcel forms part of the Mulund landfill, where biomining activities are currently underway. Although sections of the landfill have already been reclaimed, the identified 15-acre site still contains an estimated 2.5–3 lakh metric tonnes of legacy waste.

Before construction activities can commence, the site will require waste removal, remediation, soil stabilisation and land levelling to make it suitable for industrial use.

Structured Payment Mechanism

According to the proposed payment structure, the developer will pay six months’ lease rent along with GST in advance upon taking possession of the land.

The remediation cost will subsequently be adjusted against rental dues over the following 14 months, after which the full lease rental, including annual escalation, will become payable for the remaining lease period.

The proposal also specifies that the land will be handed over on an “as is where is” basis and may be used exclusively for the approved purposes of establishing a casting yard, precast manufacturing facility and RMC plant.

“Any extension of the five-year lease will require fresh approval from the competent authority,” the proposal states.

Developer to Secure Clearances

The lease places full responsibility for obtaining statutory and environmental approvals on the developer. These include permissions from the State Environmental Impact Assessment Authority (SEIAA), Maharashtra Pollution Control Board (MPCB), Maharashtra Coastal Zone Management Authority (MCZMA) and the Ministry of Environment, Forest and Climate Change (MoEF&CC), wherever applicable.

The developer will also be required to scientifically process all legacy waste in accordance with the Solid Waste Management Rules, 2016, comply with environmental monitoring norms and install essential infrastructure, including CCTV surveillance, access control systems and safety facilities at the site.

Supporting a Landmark Redevelopment

The proposal reflects the BMC’s effort to support the Dharavi Redevelopment Project by providing dedicated infrastructure space while ensuring environmental safeguards and financial returns for the civic body. If approved, the leased land is expected to play a vital role in accelerating construction activities, while balancing redevelopment needs with responsible waste management and regulatory compliance.

By Sana Khan
Executive Editor,
Realty Quarter
Mumbai