Land under Mumbai, Kolkata, Kandla ports to be made into townships

Three central government-owned major ports – Mumbai, Kolkata and Deen Dayal (Kandla) – are likely to generate nearly Rs.1 lakh crore by developing townships and office space on their under-utilised or unutilised land, according to government estimates.

This could be the first big ticket initiative to monetise large tracts of land by government agencies. Revenue generated from this would be used for port-related developments. The move comes amid the government’s growing emphasis on port-led development.

Sources said the Centre has finalised the township policy for these three ports, which will allow them to prepare the detailed land use plan, including areas for redevelopment. The policy is likely to get Cabinet nod, sources said. According to an estimate, at least 1,600 hectares of land under 10 major ports can be redeveloped.

The policy will enable the three port trusts to renew thousands of old leases, which will generate more revenue and put an end to a plethora of litigations.

Sources said only in the case of Mumbai port, over half of the total 495 hectares under township area can be utilised for redevelopment that can generate over Rs.50,000 crore for the port trust. An estimate suggests renewal of leases would generate nearly Rs.2,000 crore and the annual income from these leased properties would increase more than four times, once the policy is implemented. One of the options being explored for Mumbai port is to develop a huge office complex, which can be given on rent to government departments, sources said.

Similarly, in the case of Deen Dayal port (Kandla), nearly 800 hectares out of the 2,768 hectares of township area has potential for redevelopment. The port has an estimated potential to generate Rs.1,600-crore revenue through allotment of about 819 hectares.

Sources said in the case of Kolkata port, about 100 hectares of the township area can be utilised for development. Moreover, the port trust can generate about Rs.25,000 crore by leasing out the already existing township land.

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