Mumbai: Real estate developer Housing Development & Infrastructure Ltd expects revenue of Rs150-180 billion from its deal to clear and develop land for Mumbai’s international airport, a top official said on Tuesday.
The Mumbai-based firm said it has signed an agreement with Mumbai International Airport Pvt Ltd (MIAL) for slum rehabilitation and development of 276 acres around the city’s airport, one of the busiest in India.
“We expect these revenues over the next 4-5 years, on a conservative basis. The money should start flowing in by first quarter of next year,” HDIL managing director Sarang Wadhawan said.
Under the deal, HDIL will clear the encroached land of slums and hand over the area to MIAL for development. It will also re-settle the affected persons at alternative locations. The process is to be completed within 48 months.
Wadhawan said HDIL will gain development rights on the cleared land in return, but declined to specify the size.
“The rehabilitated land itself adds up to 25 million sq feet, while the development rights are much more,” he said. His firm is among the major players involved in Mumbai’s slum rehabilitation scheme.
MIAL, in charge of modernising the Mumbai airport, had earlier undertaken a mammoth exercise to clear titles to about 2,000 acres belonging to the airport, but expansion plans were stymied due to large-scale encroachments. “Once slum rehabilitation starts, as land becomes available, we can speed up infrastructure development on the air side,” a MIAL spokesman said.
MIAL holds commercial development rights for 10% of airport land and will part with some of this as part of the deal withHDIL, he added.
The GVK group-led consortium plans to double airport capacity to 40 million passengers by building a new terminal, building roads and creating related infrastructure at a cost of Rs52 billion.
HDIL shares, which earlier touched a new high of Rs820, were trading at Rs749.8, down 1.9%, in a weak Mumbai market.