Mumbai – The Reserve Bank of India (RBI) has offered ₹2,650 crore to Mumbai Metro Rail Corporation Limited (MMRCL) for a 4.12-acre plot at Nariman Point on a long-term lease, aiming to expand its headquarters in south Mumbai, as published by Hindustan Times.
The plot, which has a development potential of 1.6 million square feet, requires 113,500 square feet to be handed over to the state government for rehabilitating previously existing properties. MMRCL had put the land on a 90-year lease in October through international property consultant Knight Frank.
An official familiar with the discussions stated that RBI’s offer exceeded MMRCL’s expectations by approximately 25%. While earlier reports suggested that RBI’s bid was over ₹5,173 crore, the official clarified that this figure represented the total project cost, including construction. MMRCL had anticipated earning around ₹2,000 crore from the land monetization.
“Receiving an offer of ₹2,650 crore is about 25% more than what was expected,” the official said. “Discussions for this government-to-government transaction are progressing as planned.”
The lease proceeds were intended to help MMRCL begin repaying debt borrowed from the Japan International Cooperation Agency (JICA) for the ₹37,276 crore Metro 3 corridor, which connects Aarey, Bandra-Kurla Complex, and Cuffe Parade. JICA has provided ₹21,280 crore in funding for the project.
MMRCL had initially invited bids in early October, setting a deadline for November, which was extended twice to attract interest from the real estate sector, private firms, alternative investment funds, and foreign investors. Companies such as the Tata Group, Blackstone Group, Oberoi Realty, and RMZ Group had expressed interest. However, MMRCL canceled the tender last month after RBI formally conveyed its intent to acquire the plot.
The central bank has been seeking additional office space for at least four years, as its existing headquarters and the New Central Office near Horniman Circle have reached capacity.
The land previously housed the offices of multiple political parties, including the undivided Nationalist Congress Party (NCP), which has since relocated to Ballard Estate to facilitate the construction of the Vidhan Bhavan metro station.