Chief minister Ashok Chavan wants the Mantralaya makeover project to be undertaken by the Maharashtra Housing and Area Development Authority (Mhada) instead of a private developer.
Chavan’s stand has exposed the differences between the Congress and the NCP, the two partners in the Democratic Front coalition ruling the state. Chavan’s deputy Chhagan Bhujbal, a senior NCP politician who heads the public works department, wants private developers to execute the project.
The government opened tenders last week for the project. Real-estate firm Indiabulls emerged as the highest bidder at Rs1,376 crore.
According to an official in the chief minister’s office (CMO), “Chavan is under pressure from a section in the cabinet to rope in Mhada for the project. Ahead of the assembly elections [due in October], the decision to hand over Mantralaya to private builders would go against the image of the Congress.”
The naysayers within the cabinet argue that Mantralaya and the area around has the distinct identity of a government precinct and this character needs to be preserved; the private sector cannot be allowed to take it over.
Some ministers also argue that if such a large project is given to Mhada, the revenue generated through allocation of additional floor space index (FSI), up to 4.5, would go into the government’s kitty. Why, they ask, should the government allow private developers to walk away with this profit, estimated at up to Rs4,500 crore.
Chavan indicated that a cabinet subcommittee would look into the proposal before any decision is made.
The rethink within the DF government reflects the continuing power tussle between the Congress and the NCP. “I have no idea what the core committee plans to do with the project,” Bhujbal said. “All I can say is that the process for the project was initiated long ago and tenders were twice invited for it.”
But a source in the CMO said, “The government has every right to roll back its decision. Despite shortlisting bidders, it can postpone the project if necessary.”
Meanwhile, industries minister Narayan Rane has expressed reservations at the proposed redevelopment of Government Colony, Bandra, spread over 95.80 acres. “The government is virtually handing over prime property in its possession to private developers without imposing terms or thinking of the rehabilitation of people in existing structures,” he said.
