Apart from this, it will generate 75 lakh sq ft of built-up area for commercial sale, with the expected revenue from this developed space being around Rs 10,000 crore.

For this project, MMRDA has anticipated Rs 4,000 crore for building rehab housing and developing infrastructure. It had called for a proposal earlier, seeking funds from domestic lenders to be paid within a tenure of 8 years, including a 3-year principal and interest moratorium followed by a 5-year repayment.

According to MMRDA, this project is a crucial step towards urban redevelopment and social improvement in a vital area of Mumbai to improve the lives of Ramabai Ambedkar Nagar inhabitants. The bids evaluation will vary over various factors such as amount of loan, interest rate, and any upfront fees proposed by the bidder.

As per an MMRDA official, the estimated cost of the project and revenue from commercial sale is substantially higher, further making the project not only viable but also potentially profitable.

“Given these projections, MMRDA is exploring financing options to ensure the financial stability of the project and to expedite its development. One strategy under consideration is to seek debt financing, where the entire project would serve as collateral. Since the value of the project is more than double the debt value, it makes for a secure option for lenders,” the official said.