The Mumbai Metropolitan Region Development Authority (MMRDA), is looking at land tokenisation as a potential new mechanism to unlock the financial value of its vast land assets and fund major infrastructure projects.
Maharashtra May Become First Tokenised State
MMRDA Commissioner Dr Sanjay Mukherjee said the proposed land tokenisation framework under Maharashtra’s proposed Delta Act could allow the authority to leverage its land assets more efficiently and unlock value based on the actual funding requirements of its projects. Maharashtra is expected to become the country’s first “tokenised state” once the framework is introduced, Mukherjee said, adding that MMRDA, among the pioneers of land monetisation in the country, could significantly benefit from the mechanism. “Today, all the projects that we are doing are financed in an interesting way. We put our own equity into it, which we get from land monetisation, and the rest we take as debt,” he said.
MMRDA Holds Vast Land Assets Across Three Districts
The proposed mechanism assumes significance for MMRDA as the authority has secured 33,954.61 hectares of government land across 1,324 villages in Thane, Raigad and Palghar this year. The land, transferred to MMRDA on a freehold basis, includes areas around Kalyan, Bhiwandi, Thane, Panvel, Alibag, Pen, Palghar and Vasai which is seeing good value in real estate market with improved infrastructure. For 2026–27, MMRDA has projected more than Rs 11,177 crore from land sales and related charges. The Bandra-Kurla Complex (BKC) alone is expected to contribute Rs 5,534.95 crore, while the Wadala Truck Terminal and Wadala Notified Area are estimated to generate around Rs 1,630 crore. The Karnala–Sai–Chirner New Town Development Authority (KSC NTDA) has been assigned a land-related revenue target of Rs 4,000 crore. These are all under conventional land monetisation schemes. Now with also the proposed tokenisation mechanism if approved, could provide MMRDA with another avenue to tap the value embedded in its land assets without treating the exercise merely as conventional land sales. “This is not about speculation; this is all about unlocking the value,” Mukherjee said, explaining that the proposed mechanism could allow the authority to unlock only as much value as required for executing a particular infrastructure project. According to Mukherjee, better cash flow generated through such mechanisms could strengthen MMRDA’s financial management and help the authority execute infrastructure projects more efficiently and within timelines. The strategy could also reduce the authority’s dependence on borrowing while helping achieve financial closure for its large project pipeline.
