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MbPA Clarifies Rs 4.75 Bn Land Charge for SoBo Twin Tunnels

2025-01-02

In response to a report about the Mumbai Port Authority (MbPA) quoting Rs 85 billion for land near Orange Gate for the Mumbai Metropolitan Region Development Authority (MMRDA), the port authority has clarified that it has only requested Rs 4.75 billion.

The report on December 27 highlighted a discrepancy between the land cost and the total project value for the Eastern Freeway-Coastal Road twin tunnels. A spokesperson for MbPA explained, “Based on MMRDA’s request, the terms for granting land near Orange Gate Princess Dock for Phase 1, covering 12,500 sq m for temporary use for five years, at an annual lease rent of Rs 25.58 crore, and 7,100 sq m for permanent use for 30 years, at an annual rent of Rs 14.53 crore, have been communicated to MMRDA. These terms align with Union Cabinet-approved policy guidelines for Land Management 2015.”

The statement also mentioned that a special way charge will apply to the underground tunnel passing through MbPA land. After the initial project period, the 1.25-hectare land will revert to MbPA, and for the permanent land, a 50% concession will apply after five years.

The statement continued, “Given the project’s importance in alleviating Mumbai’s traffic congestion, an understanding has been reached between both parties, and the land was handed over to MMRDA on October 1, 2024, for the city’s improvement. MMRDA has already begun work,” it added.