MMRDA Explores Land Tokenisation To Fund Mega Projects

The Mumbai Metropolitan Region Development Authority (MMRDA) is exploring land tokenisation as a new mechanism to unlock the financial value of its vast land assets and fund major infrastructure projects.

MMRDA Commissioner Dr Sanjay Mukherjee stated that 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, with MMRDA among the pioneers of land monetisation in the country. The authority currently finances its projects by putting its own equity into it, which it gets from land monetisation, and the rest it takes as debt.

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 the 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.

If approved, the proposed tokenisation mechanism 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, but about unlocking the value, according to Mukherjee.

The proposed mechanism could allow the authority to unlock only as much value as required for executing a particular infrastructure project. 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.

In the context of Maharashtra's infrastructure development, the introduction of land tokenisation could be a significant step forward. With the state's growing population and urbanization, the need for efficient infrastructure development is becoming increasingly important.

The MMRDA's exploration of land tokenisation is a testament to the authority's commitment to finding innovative solutions to funding its infrastructure projects. As the state continues to grow and develop, it is likely that land tokenisation will play a key role in unlocking the value of its land assets and driving infrastructure development forward.

The significance of this development cannot be overstated, as it has the potential to transform the way infrastructure projects are funded in Maharashtra. With the state's infrastructure needs continuing to grow, the introduction of land tokenisation could be a major step forward in addressing these needs and driving economic growth in the region.