Jet in talks with realtors to develop BKC land

MUMBAI: India���s largest private airline by market value, Jet Airways, has initiated talks with real estate developers to jointly develop around 1.5 acre at Bandra Kurla Complex (BKC) in suburban Mumbai. This land is a part of the four acre property that the company bought in March 2008 for Rs 826 crore.

KG Vishwanath, the company���s vice-president (commercial strategy and investor relations) said a deal will close in about three months. The Naresh Goyal-controlled airline has also started construction of its new corporate headquarters, which will be housed on the balance 2.5 acres.

This is expected to be ready during the early part of next fiscal. Saroj K Datta, executive director of Jet Airways, said: ���We have started work on the land in ���G��� Block at BKC, where we propose to house our corporate office.���

Of the total consideration of Rs 826 crore, the company has, so far, paid a one-time lease premium of Rs 339.72 crore to the Mumbai Metropolitan Region Development Authority (MMRDA). Also, it deposited Rs 10 crore as earnest money.

In the light of the airline���s difficult financial position, it has requested MMRDA for additional time to make the balance payment. MMRDA chief Ratanakar Gaikwad said it has granted an extension to Jet Airways till September to pay the balance amount. ���In the event of the airline failing to make the payment, it would have to forfeit its security deposit,��� Mr Gaikwad added.