MILLS & BOOM

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: Land unlocked, planning awaited
Can the mill lands chart a new course in city development?
E Jayashree Kurup in Delhi

The Supreme Court ruling clearing the way for redevelopment of select NTC mill lands is expected to free close to 600 acres in Mumbai alone, where land is at a premium. Little wonder then that when the Mumbai Textile Mills of the National Textile Corporation was sold to the Jwala group - a joint venture between the Delhi-based DLF group and the Mumbai-based Akruti Nirman group - for Rs 702 crore, the market reactions were mixed. While seasoned market players like Niranjan Hiranandani of Hiranandani Constructions felt the whopping price paid would push up real estate values in the city, others feel the fact that the sale took place is positive as it frees locked land for redevelopment.

Whether the price of Rs 702 crore, which translates into an FSI price of Rs 7000/sq ft cost was overpriced, remains to be seen. Says Kumar Gera, past Chairman of Credai, “There are many ways of discounting that value and the actual price may well be about Rs 4000/sq ft after development but that remains to be seen. Property values in Mumbai have already risen over 100% in the last one year. A large part of this is attributed to the huge pent-up demand and scarce supply of land in the city.”

However, the Parel property of NTC saw at least two groups from Delhi - DLF and Parsvanath - bidding for the land, indicating the level of national interest. The NTC mills lands’ sale will free close to 2,709.95 acres for redevelopment across the country at a market value of about Rs 3,437.90 crore. However, the euphoria generated in Mumbai has clearly not been replicated in all other cities.