Mumbai, Nov 24 (NationPress) The City and Industrial Development Corporation has revealed its new ‘Iconic City Development Policy’ aimed at fostering concept-driven, internationally recognized urban initiatives on its expansive land holdings to enhance Navi Mumbai’s development in conjunction with the forthcoming international airport.

This policy received state cabinet approval last week, and CIDCO characterizes it as a tactical move in anticipation of the Navi Mumbai International Airport's launch and the region’s rise as a prominent growth center.

“CIDCO draws comparisons to global projects like Marina Bay Sands in Singapore and the business districts of Dubai and Abu Dhabi, suggesting that Navi Mumbai can also accommodate landmark developments that establish a unique global presence. By unlocking extensive land reserves via a controlled, revenue-sharing model, the Corporation aims to stimulate upscale townships, business hubs, and tourism-oriented areas while safeguarding public interests and maintaining long-term land value,” said government sources.

The initiative seeks to transcend the current practice of leasing individual plots through open auctions, where each leaseholder constructs their plot independently. While this model functions for standard projects, it hinders the realization of a cohesive urban vision across large land parcels, prompting CIDCO to create a framework more aligned with the state's Integrated Township Policy.

Under the current system, CIDCO allocates plots on lease, and private developers construct per lease terms and planning guidelines, resulting in fragmented developments and missed chances to create iconic districts. The new policy aims to facilitate ‘iconic’ and concept-driven developments featuring unique skylines, public spaces, and integrated amenities across large, contiguous areas.

“CIDCO anticipates that such iconic projects will transform local urban environments, enhance tourism prospects, and significantly elevate surrounding land values, thereby improving its own land monetization opportunities. Projects can be entirely residential, commercial, or mixed-use, but must include public infrastructure and amenities akin to township standards, such as roads, utilities, parks, and civic facilities,” stated government sources.

A key change in the policy is the shift from outright leasing to a Construction and Development (C&D) Agreement model, where only development rights are granted without transferring leasehold interests in the land.

A private firm, chosen through a competitive bidding process, will be responsible for planning, financing, constructing, and marketing the project, while CIDCO retains ownership of the land throughout. The private entity will not be permitted to mortgage the land, thereby minimizing third-party encumbrances and safeguarding the authority’s title.

The operator will only be allowed to sell completed units and not vacant plots, and will assume responsibility for operations and maintenance during the designated concession period. CIDCO will reserve the right to reclaim the land if project milestones are not achieved or if there are significant violations.

To avert land speculation and delays, the policy mandates clear timelines within a 20-year agreement. By Year 12, at least 75% of total construction must commence, and by Year 15, the developer must secure commencement certificates for all elements along with occupancy certificates for a minimum of 75% of the constructed area.

By Year 20, the project should be fully completed with all occupancy certifications. Non-saleable components such as utilities, internal roads, and public facilities must be delivered within the initial 12 years. Failure to meet these benchmarks will incur penalties, including advance payments against anticipated future revenue shares, and may trigger CIDCO’s right to reclaim undeveloped or unsold sections.

The policy employs a hybrid financial model that combines an upfront fixed fee with a variable revenue share from unit sales. The fixed fee for development rights is required to be paid at least 20% prior to signing the C&D Agreement, with the remaining balance distributed over a maximum of eight years and converted to present value using a simple interest rate of 9%.

Additionally, bidders will propose a revenue-share percentage on the sales proceeds of each unit, which will be the primary criterion in the tendering process. This configuration is designed to protect CIDCO’s financial interests with a guaranteed fixed income while allowing it to benefit from the potential gains of successful, high-value iconic developments.

(Contact Sanjay Jog at sanjay.j@ians.in for any clarification)