The residents of the Maharashtra government's employee staff quarters have suggested that government redevelop the colony spread across 96 acres. The resident's association has suggested the government to redevelop the land on the build operate and transfer basis.
According to the proposed plan, the redevelopment project is expected to cost Rs 1,686 crore (Rs 16.86 billion) with an estimated revenue of Rs 1,899 crore (Rs 18.99 billion). It also makes provision for construction of government offices for the suburbs. The Maharashtra government constructed the colony in 1958-60 on a reclaimed land.
Madhukar Vichare, advisor, Government Quarters Residence Association, said, "The relocating of existing staff in the multi-storey buildings will require 25-30 acres of land while the government can exploit the rest for further development.
The project will also fetch additional revenue to the government that is spending Rs 15-20 crore (Rs 150-200 million) on annual maintenance."
When contacted D B Deshpande, secretary, public works department, Maharashtra government, said that he could not comment on the proposal since the house is in session.
The government colony, which houses around 5,000 families, is strategically located on the western express highway and is close to Bandra-Kurla Complex developed as the city's second business hub.
If approved the project will release a significant supply of real estate at Bandra (East), which has attracted corporate houses to set up new offices in recent years. According to the industry experts, the real estate rates at Bandra-Kurla Complex have jumped 100 per cent in the last three years.
Currently, Bandra (East) is commanding Rs 30,000-40,000 per sq ft for luxury apartments while residential rates are hovering around Rs 14,000 per sq ft. The rates for office spaces at Bandra-Kurla Complex are been quoted at Rs 350-375 per sq ft.
Sanjay Dutt, deputy managing director, Cushman & Wakefield, said, "The additional of piece of land will have huge impact of the area's realty considering the strategic position of the colony. The specific assessment is not possible as the project will take time to come up if approved."
The residents maintain that colony is living on a borrowed time and the July 2005 deluge has severely damaged the buildings, with 5-6 feet water entering the houses. Vichare said, "The staff have already paid the cost of the houses through the HRA deductions and it is impossible to buy new houses at such high realty prices."