State government’s recent industrial policy allows corporate firms, who had acquired land under the special economic zone (SEZ), to unlock 40% of it for construction of residential buildings. The firms can also sell the developed space in the open market.
Both Ambani and Jain jointly own over 4,300 acres of land at Ulwe and Dronaghiri in Navi Mumbai. “They both own the land. It has no connection with Reliance,” said sources close to Ambani.
“Besides malls, schools and colleges of international standard too will be started. They plan to develop a walk-to-work sort of a culture. We are still working out the module. We are trying to make houses for the affluent as well as for the common man,” sources from Jain's office said.
The central finance ministry recently sanctioned funds for a sea link connecting Sewri to Ulwe.
“The proposed eastern freeway and sea link will reduced commuting time. It will connect the established business district (Nariman Point) to the emerging one (Ulwe and Dronagiri). It will generate several jobs and opportunities in various sectors," said Atul Nemade, a real estate expert.
"By the time the residential project takes proper shape, both the freeway and sea link as well as the Navi Mumbai International Airport will be in operation. The new industrial policy helped us work on this unutilised land. It had been lying vacant since 2005.”
A local developer said Ambani and Jain launching the residential project and Cidco giving 22% developed land to farmers whose land would be acquired for the airport will add a huge track of land and, subsequently, inventory.
“It may cause a tremor in the South Mumbai property market. We are worried about a huge player like Ambani finishing us by his business tricks. If that happens, we have to start something new soon,” he said.