Jet needs help to develop BKC plot

Mumbai: A severely cash-strapped Jet Airways that had bagged a 2.5-acre plot at Bandra-Kurla Complex for Rs339 crore back in 2006, is now seeking help to develop it. The plot is strategically located next to the Mumbai Cricket Club.
Developers like the Wadhwa Group, Oberoi Constructions, Godrej Properties, and industrialists like steel tycoon Mittal submitted their offers last week.
Oberoi has apparently made an offer of 2 lakh sq ft space, monetary compensation of Rs530 crore and an additional corpus of around 10% to the airline. Others have made similar offers.
The airline has taken the joint venture route as, according to rules framed by the Mumbai Metropolitan Region Development Authority (MMRDA) for BKC plots, the owner cannot sell the plot to a third party for five years after the commercial building has been constructed.
MMRDA rules also stipulate that Jet, who had bid for the plot in the end-user category, has to occupy 60% space of the original area, which comes to 2 lakh sq ft.
In view of the MMRDA rule, and the fact that the global floor space index at BKC has increased to 4 thereby, increasing developable area on the plot to roughly 13 lakh sq ft, the airline had asked developers to make offers involving both monetary and built-up area sharing options.
08/02/10 Rajshri Mehta/Daily News & Analysis

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Categories: Jet Airways Feb 2010