The project, to be developed on a build, operate, transfer basis, will come up in the city's nerve centre, Nariman Point, and will have a state-of-the-art parking lot.

L&T has recently been awarded the mandate by the Mumbai Metropolitan Regional Development Authority (MMRDA) to develop the prime plot measuring over 3,000 yards. The tenure of the lease will be for 60 years.

Sources close to the deal told The Financial Express that both partners - L&T and Piramal Holdings - have agreed to share the cost of the project, which is likely to be completed next year.

According to the proposed agreement between the two partners, L&T will be associated with the project for around three years and will later sell their their stake to the Piramals.

Said L&T officials: "We are talking to a lot of parties for jointly developing the property and the Piramals are just one of them. We hope to finalise a partner within the next two months."

The plan for the parking lot, which will have a commercial space of around 55,000 square feet, includes construction of a unique mechanised parking system that will involve the use of specialised lifts. Besides, there are plans to develop a ramp system and stacking system for mechanical parking.

Under the mechanised system, the cars will be lifted with the help of special elevators to various floors and shifted to specially created slots with the help of electrically-operated platforms.

The parking space in the project will spread over 15 storeys. The ramp system, if implemented, will be spread over four storeys above and two storeys in the basement. The parking lot will have the capacity to house around 600 cars.

According to sources, "Since L&T has the expertise to construct and Piramals are flush with funds with a keen interest to expand its of network retail chains, it makes good business sense for L&T to share the costs initially and exit from the business at later date."

Piramal Holdings have mega plans to replicate the success of Crossroads at four locations in Mumbai. They have already finalised a deal with the Kandelwal Estates a private company owned by Deshbhandhu Gupta to acquire Bandra Talkies, located at Linking road.