Mumbai’s civic body is once again turning to long-term land leases as a way to raise funds for the city’s massive infrastructure pipeline. The Brihanmumbai Municipal Corporation has invited bids for a plot in Worli on a 30-year lease, with an option to extend it for another 30 years. The move is part of the corporation’s broader push to generate steady revenue without selling land outright, especially at a time when Mumbai’s infrastructure spending is at an all-time high.
The civic body has already seen how effective this strategy can be. Earlier this year, it leased two prime plots, one near Crawford Market and another at the Worli Asphalt Plant, bringing in more than Rs. 1,152 crore. The money has been earmarked for ongoing and future projects including bridges, roads, coastal works and improvements across key public spaces. Encouraged by the response, the administration has now placed the Worli land parcel on the auction list.
The plot is not large, but it sits in a valuable location. The total area measures roughly 3,518 square metres. Out of that, the currently usable portion stands at 1,299.52 square metres. As per Mumbai’s Development Plan 2034, the plot is reserved for recreational activities, which means the lessee will have to create facilities such as a club, sports centre or gymkhana. For private bidders, this opens the door to develop a community-focused space in a neighbourhood where land is scarce and demand for such amenities is high.
The land itself has an unusual history. It was originally allotted under Vacant Land Tenure, a system under which long-term use is allowed but ownership remains with the government. Over time, the plot became stuck in legal proceedings, delaying its development. After years of dispute, the BMC’s G/South ward formally took possession of the site in October 2024. This cleared the path for the civic body to put the plot up for auction as part of its revenue-generation programme.
The Worli tender is part of a larger wave of auctions that the BMC initiated in December 2024. Three major properties were placed on the list: the Worli Asphalt Plant, a plot near Crawford Market and a plot at the BEST substation in Malabar Hill. While two of the auctions moved ahead smoothly, the Malabar Hill proposal hit a roadblock. Local residents opposed the move, and the civic administration eventually cancelled the tender.
The other two, however, fetched substantial sums. The Worli Asphalt Plant plot marked one of the year’s biggest real estate transactions for the BMC, bringing in Rs. 783 crore. The Paltan Road plot near Crawford Market received the winning bid at Rs. 369 crore. These two deals alone contributed heavily to the Rs. 1,152 crore the civic body raised.
With Mumbai’s infrastructure list expanding, from the coastal road and metro lines to sewerage upgrades and stormwater projects, the city needs new avenues to fund capital-intensive work. Leasing land for decades at a time is emerging as one of the more dependable tools. For private bidders, long leases offer stability and enough time to recover investment. For the public, the model ensures that ownership never leaves the civic body.
The Worli plot tender is being seen as another test case. It is expected to draw interest from clubs, hospitality groups and private institutions that want to build recreational facilities in one of south Mumbai’s most sought-after neighbourhoods. The BMC has not shared revenue estimates for this specific plot yet, but officials say they expect strong bids given its location and the clear terms of use set under DP 2034.
If the response mirrors the earlier auctions, the civic administration could continue to lean on this model. It gives Mumbai a way to monetize land without losing control over it, while also pushing development that benefits locals. For the BMC, every such lease feeds into the city’s infrastructure engine. For bidders, it offers a foothold in one of Mumbai’s most premium zones. And for residents, it ultimately determines how public land evolves in a fast-changing city.
