According to Mantralaya sources," a final decision on the lease is yet to be taken. This is just one of the options before the government."

The money from the lease, if finally decided on, is expected to be utilised for building a new six-storey annexe to the main Mantralaya building, adding additional space of over one lakh square feet.

The new administrative building with 19 floors, houses the urban land ceiling, irrigation and social welfare departments besides a few other ministerial departments. In the event of a lease (orleases) being finalised, these departments may be relocated to the Bandra-Kurla complex and elsewhere.

According to Mantralaya sources, "The government is looking at the option of leasing out the premises to institutions who may be scouting for space in the area."

Mantralaya has only 40 cabins for ministers making it difficult to accommodate all the 55 ministers, including the chief minister and the deputy chief minister, in the current premises.

The erstwhile Shiv Sena-Bharatiya Janata Party administration had about 48 ministers. While 45 of them were allotted cabins in Mantralaya, three ministers opted to operate from the nearby `Manora' guest house.

Ministerial cabins consist of a main chamber and anteroom, while some of the larger ones have a committee room. The space constraints are expected to be offset by allotting some of the cabins meant for secretaries of the respective departments to new ministers.

The money required for the annexe needs to be financed from the lease as the stategovernment's coffers are already dry with the chief minister himself putting the total debt burden at Rs 38,000 crore. According to Mantralaya sources, this is excluding the Rs 8,000 crore raised through bonds for which the government has given a guarantee.

The state finance minister, Jayant Patil, is believed to have initiated a number of cost-cutting measures like asking the new MLAs and ministers to do without new cars, renovated office cabins or bungalows. Patil is quoted as having said that out of every rupee earned, the government spends 73 paise on salaries, 25 paise on interest and 30 paise on subsidies.

The government has already initiated a number of cost-cutting measures which include a freeze on creating new posts, reconsidering some schemes, closing down some others launched by the centre, and putting limits on borrowings and providing guarantees for loans.