MMRDA changes clauses of TDR sale in bid to lure more builders

In order to attract more developers to purchase Transferable Development Rights (TDR), the Mumbai Metropolitan Region Development Authority (MMRDA) has changed clauses for the sale of the same. In the next two days, it will be clear on how many crores the development body will bag to fund Mumbai Metropolitan Region's (MMR) infrastructure.

Instead of selling a minimum of 2,500 sq mtrs to each developer, it is now willing to give out a minimum of 500 sq. mtrs.

A pre-bid meeting was held on May 25, where it was decided that the minimum area a developer has been reduced. "There are builders who do not want 2,500 sq mtrs, but are willing to buying lesser s[ace. It is a win-win situation for both, they get development rights and we get revenue," said an MMRDA officer who was part of the meeting.

Five developers had shown interest by attending the meeting, but the picture will only be clear on Wednesday how many actually come forward to buy TDR.

"TDR's market is very volatile, we do not know how much revenue we will get through the sale and how much TDR will be sold. MMRDA has a lakh sq mtrs of TDR, but this time we have put up only 30,000 sq mtrs for sale," said the official.

In the last one decade, MMRDA has sold its land bank in Wadala and Bandra Kurla Complex to generate revenue to fund projects in the MMR. Real estate market being in a slack period, it had put the sale of plots on hold. After years, it has now started generating funds through sale of TDR or plots.

The TDR on sale were generated through rehabilitation projects in Goregaon area.