Mumbai/Bangalore: The Maharashtra government on Tuesday revised its land lease policy for Mumbai, increasing lease rates and reducing the tenure of lease agreements.
The state cabinet decided that land in Mumbai can be given on lease for only 30 years, as against the much longer tenures of 99 years or more allowed until now. Lease rates will match market prices.
The decision is expected to boost revenue for the state government, as the lease rates levied till now were archaic.
A majority of the lease transactions in Mumbai are up for renewal. Chief minister Prithviraj Chavan said there are around 1,500 such leased land parcels in south Mumbai and 500 in suburban Mumbai. These are mostly leased out to residential colonies or private firms.