The Maharashtra government has approved a major land acquisition deal to purchase 71.06 acres of land from BSNL and MTNL in Borivali, Mumbai, for approximately ₹7,500 crore to develop affordable housing.
Land parcels and locations
The deal covers six land parcels across two localities in western Mumbai’s Borivali suburb:
- BSNL land at Gorai: One large parcel covering CTS numbers 22, 23, 25, 63 (part), 64 and FP No. 460, totaling 41.32 acres, valued at around ₹4,017.26 crore.
- MTNL land at Shimpoli–Eksar, Borivali: Five plots (FP 468; Plots 390, 374/A/3; and survey numbers 1387, 1387/1–6, 1387/12–21, 1387/27; plus FP 392), together measuring 29.74 acres and valued at about ₹3,250.26 crore.
Combined, the six parcels add up to 71.06 acres with a total estimated market value of ₹7,267.52 crore; the government’s approval cites an overall outlay of roughly ₹7,500 crore when including ancillary costs.
Purpose: affordable housing under PMAY
The land is being acquired by the Maharashtra Housing and Area Development Authority (MHADA) through its implementing arm, Maharashtra Housing Development Corporation (Mahahousing), primarily for affordable housing projects under the Pradhan Mantri Awas Yojana (PMAY).
Earlier approvals in April 2026 had already cleared about 28.84 acres of “reserved” BSNL-MTNL land in Gorai and Shimpoli for PMAY housing at an estimated ₹729 crore, setting the policy direction for using these telecom PSU lands for low-cost housing. The latest Government Resolution (GR) expands that plan to cover additional reserved/unreserved parcels and formalizes the funding mechanism.
Funding structure and financial approvals
The September 23, 2026 GR (No. Mahahousing-2025/Pr.Kr.265/GruNidhi-2) lays out a multi-layered financing plan:
- In-principle approval: About ₹7,500 crore is approved in principle for acquiring the six properties and meeting related expenses such as stamp duty, registration fees, and other transaction costs.
- Immediate fund release for MTNL parcels: For the five MTNL plots, the state approves releasing ₹3,446 crore from the Maharashtra Housing Fund to Mahahousing. This includes ₹3,250 crore for land purchase and around ₹196 crore for stamp duty, registration, protective structures, security fencing, etc.
- Housing cess contribution: The Maharashtra Housing and Area Development Authority (MHADA) is directed to deposit its share of funds into Mahahousing’s designated bank account (Indian Bank, BKC branch) as per details specified in the GR.
- Adjustment of earlier deposit: An amount previously approved as a deposit (under a January 13, 2026 GR) is to be adjusted against the land purchase cost.
- Borrowing via HUDCO: Mahahousing is authorized to raise funds through loans/lines of credit from Housing and Urban Development Corporation Ltd (HUDCO) for the BSNL/MTNL land acquisition and related project costs.
- Annual tranche from Housing Fund: Up to ₹750 crore per year is to be made available to Mahahousing from the Maharashtra Housing Fund towards HUDCO loan installments.
- Repayment terms: Mahahousing will repay the Housing Fund at HUDCO’s rate of interest plus 0.50%, and the Fund will have a first charge on revenues from Mahahousing projects until full repayment.
Role of National Land Monetization Corporation (NLMC)
The deal is structured within the broader central-government push to monetize non-core assets of public sector enterprises. The National Land Monetization Corporation (NLMC), under the Department of Public Enterprises, has been advising on valuation and monetization of BSNL/MTNL lands, including these Borivali parcels.
Record of Discussions with NLMC notes that for the BSNL Gorai land (41 acres), a portion (about 21 acres) is reserved for a crematorium; final valuation and purchase will be concluded after the Brihanmumbai Municipal Corporation (BMC) issues the relevant reservation notification and revised ready reckoner-based valuations are worked out.
Administrative and compliance aspects
The GR also sets strict controls on fund usage and accounting:
- Funds released from the Maharashtra Housing Fund must be used only for the specified purpose—acquiring these BSNL/MTNL lands and associated project costs.
- Mahahousing and the Finance Controller of MHADA must maintain detailed records and reconciliation of all funds received and repaid.
- The decision is published on the Maharashtra government website with a unique code and will be formally notified in the Government Gazette.
Why this matters for Mumbai’s housing market
Borivali, especially Gorai and Shimpoli–Eksar, is a high-demand western suburb with limited large contiguous land banks. Converting over 71 acres of telecom PSU land into affordable housing can significantly boost supply under PMAY, potentially adding thousands of units over the next few years if developed in phases.
By using ready reckoner-based valuations and a structured funding route via HUDCO and the state Housing Fund, the government aims to balance fiscal prudence with accelerated project execution, while also supporting the central government’s asset monetization agenda for BSNL and MTNL.
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