Mumbai: Yet another municipal plot is on its way to being leased as BMC has received the highest bid of Rs 470 crore from Skystead Constructions LLP for a 5,166-sq-metre property in Lower Parel, which currently houses its municipal testing and laboratory facility. The civic body has proposed leasing the land to the developer for 30 years, with a provision for a further 30-year extension, subject to the policy prevailing at the time of renewal.The bid is 3.3% above the base price of approximately Rs 455 crore fixed by the civic body. Skylark Private Limited, the only other bidder, quoted ₹459 crore.The proposal, listed as agenda item 9 for the upcoming improvements committee meeting, seeks approval to award the lease to the highest bidder and remove the plot’s existing reservation for ‘Other Institutions’ under Development Plan 2034. The proposed change will be processed under Section 37(1) of the Maharashtra Regional and Town Planning Act, 1966, which provides for modifications to an approved development plan, including inviting public objections and suggestions.BMC said the auction was intended to generate additional revenue and facilitate redevelopment of its existing testing and laboratory building. The plot, identified as part of land parcel No. 1629 in the G/South ward, has direct access from Sudam Kalu Ahire Road, which is 18.3 metres wide. The land is also affected by an approved road line of the same width.As part of the tender conditions, the successful bidder will have to construct a replacement facility with a built-up area of 1,299 sq metres for the municipal testing laboratory and hand it over to the civic body at its own cost.“Temporary arrangements for the laboratory will have to be made until the new facility is ready. The existing building can be demolished only after suitable alternative arrangements are made in consultation with the concerned department,” states the proposal.BMC invited tenders on April 6, 2026. Two bids were received by the May 6 deadline, and their financial bids were opened on May 11 after both bidders were found responsive during scrutiny.Under the proposed payment terms, the successful bidder will have to pay 30% of the accepted bid amount within a month of the letter of acceptance, with the remaining 70% payable in instalments over the subsequent eight months. The letter of acceptance will be issued only after the reservation is removed. Delayed instalments will attract interest at 12% per annum, while failure to pay within the stipulated period could lead to cancellation of the bid and forfeiture of deposits.The initial lease rent for the first 30 years is proposed at ₹1 per sq metre per annum, subject to a minimum of ₹1,000 for open land, with rent for the subsequent period to be determined under the policy then in force.The final plot area is yet to be confirmed through a joint measurement by the Superintendent of Land Records. The final area, and consequently the bid amount, may change following the measurement.In Sept, BMC’s civic house of corporators cleared a proposal to lease its 6.17-acre Century Mills land in Lower Parel to a private developer in a similar manner for a 30-year lease—renewable for another 30 years.
