Mumbai: Congress Opposes BMC's ₹816-Crore Lease Deal For Lower Parel Asphalt Plant Plot

The Congress party has vehemently opposed the Brihanmumbai Municipal Corporation (BMC)'s plan to lease a 11,299.53 sq meter asphalt plant plot in Lower Parel for ₹816 crore. Congress President and Member of Parliament Varsha Gaikwad has called for the immediate cancellation of the proposal. The leasing process, launched in April 2025, received bids from three eligible developers.

Indivara Realty's initial bid of ₹783 crore was 3.71% higher than the base price of ₹755 crore. The government revised the plot area in February 2026, raising the lease premium to ₹815.61 crore. Gaikwad highlighted that the land, currently utilized for an asphalt mixing plant, could be worth around ₹9,000 crore. Despite the plot's close proximity to a Metro station and its potential for significant commercial development through Transit-Oriented Development (TOD), Gaikwad argued that the BMC should develop the land itself to maximize public revenue.

She pointed out that the BMC's financial liabilities are around ₹2.44 lakh crore, with only ₹41,390 crore allocated in the annual budget. The proposed lease premium is merely 0.33% of these liabilities. Gaikwad warned that leasing valuable municipal land without proper assessment of its long-term financial implications could jeopardize public assets and affect the BMC's capacity to fulfill essential civic duties, including staff salaries, contractor payments, infrastructure maintenance, and public services.