BMC slashes bid price by 70 percent to attract lessees for prime plots

Civic body reinvites bids for two prime plots— Chhatrapati Shivaji Market in Fort and the Worli Asphalt Plant plot—with a 70 per cent price cut to boost revenue generation

The Brihanmumbai Municipal Corporation (BMC) has reinvited bids to lease out two plots—Chhatrapati Shivaji Market in Fort, the Worli Asphalt Plant plot—in a bid to generate revenue. The civic body aims to earn Rs 1183 crore from the 30-year lease of these plots. This time, the BMC has reduced the base price by nearly 70 per cent compared to the previous bid, which failed to attract bidders. 

In December 2024, the BMC had invited bids for three plots—Chhatrapati Shivaji Market in Fort, the Worli Asphalt Plant plot, and the BEST substation plot in Malabar Hill. However, no bidders came forward. “Earlier, we calculated the base price based on the maximum usable Floor Space Index (FSI). Bidders objected since full FSI utilisation depends on various factors,” a BMC official explained. “This time, we have based the bid price on the approved zonal FSI as per the Development Plan,” the official added. 

The latest bids have been invited for the Fort Market and Worli Asphalt Plant plots. “BEST objected to the leasing of the Malabar Hill substation plot, so we have excluded it from the bid,” the official clarified. 

According to the bid document, the base price for the Chhatrapati Shivaji Maharaj Market plot (8,116.11 square metre) has been revised to Rs 428 crore—significantly lower than the previous estimate of Rs 2069 crore. Similarly, the Worli plot (10,847 square metres) is now priced at Rs 755 crore, down from Rs 2175 crore in the earlier bid. 

 “The lease will be awarded to the highest bidder. The winning bidder must pay 30 per cent of the amount within 30 days, while the remaining sum must be paid in equal instalments over the next eight months,” the official added. While this lease deal will provide the BMC with a one-time revenue boost, it will also secure a long-term income through property tax, sewage tax, and water charges from future occupants. 

In February, mid-day reported on the financial strain faced by the BMC due to major infrastructure projects and limited revenue sources. Leasing these plots is part of the civic body's strategy to create new income streams. If this auction is successful, the BMC may put additional plots up for bidding in the near future.

Rs 1183cr
Amount BMC aims to earn from the lease

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