Anjuli Bhargava: Put your money where the airport is

OUT OF THE BLUE

I don't know about you but if I had around Rs 1 crore to spare, I would, with my eyes shut, invest in a flat in Navi Mumbai. With the kind of neighbours I'd end up having, there can be absolutely no doubt that this area will boom and my investment would more than pay off.

This gem was brought to my notice by a senior government official, who was mentioning this to me in the nature of advice. "Take my word for it," he said, slamming his hand on his table to reiterate his point. "Prices in Navi Mumbai's Palm Beach road, if not in our lifetimes, in our children's, will be like Colaba or Cuffe Parade." He had, of course, already put his money where his mouth was.

I didn't take his word for it, but I did explore a bit further. As I delved deeper, I realised here was another Devanhalli in the making. For those not in the know, Devanhalli in Bangalore "" where the new international airport is coming up "" went through a similar phase. The moment the site for the airport was cleared and certainly well before it became public knowledge, local politicians "" with former prime minister Deve Gowda leading the way "" and builders had jumped in and bought up hundreds of acres at throwaway prices from farmers. The gated complexes that today command anywhere between Rs 1,500-3,500 per square foot were sold to original allottees at a measly Rs 200 by builders. Several non-resident Indians bought up 10-12 plots each and are still holding them empty, in anticipation of future gains once the airport becomes functional. Anyone back then who'd had the money and the sense to follow the lead of the local politicians will be thanking his stars.

The grapevine and CIDCO sources confirmed to me that Navi Mumbai was going the same way. Several leading politicians including at least one union minister (whose name seems inextricably linked with any land anywhere in the country) have invested in acres of land there. Large chunks have apparently been bought up by local MPs. Bureaucrats have invested in flats of varying sizes.

The Ambani brothers, especially the older one, has already placed many of his eggs in the Navi Mumbai basket. His corporate headquarters "" a 23-storied building "" is coming up in one of the Navi Mumbai colonies. He's also involved in setting up one of the largest special economic zones in the region (the land for this was handed to him on a platter by CIDCO). Accessibility of the region is being worked upon with a missionary zeal. Roads, bridges, expressways, rail lines "" everything conceivable has been conceived and is on its way.

The Navi Mumbai airport site has been approved by ICAO and all other agencies and will eventually come up. Several leading industrial houses will be jostling with each other to bag this one. Land prices around the airport have shot up three times ever since the announcement of the Cabinet clearing it.

When I got back to this official and said that his advice seemed sound but that I simply didn't have the kind of money needed for this kind of investment, he looked dejected (and a bit perplexed "" what's Rs 1 crore in today's day and age?). But, very soon, he perked up and added, "Oh don't worry, if not Navi Mumbai, you can look at Mopa "" do you know once the new airport at Mopa comes up the entire map of Goa will be redrawn?" His point was land around Mopa is cheaper than Navi Mumbai is today, but holds as much promise. And the list of neighbours he listed there was even more enviable.

I listened and realised I had new vistas to explore. Can Navi Mumbai go wrong? I don't think so. There's too much at stake for too many. I'm just working on the Rs 1 crore now.