The state government has directed MHADA to sign a Memorandum of Understanding (MoU) with the Housing and Urban Development Corporation (HUDCO) for the convention centre at Bandra Reclamation. Early estimates are that the centre could cost Rs 500 crore; with HUDCO and the government to have a 50:50 equity, it is unclear how the cash-strapped MHADA will raise the required resources. MHADA Vice-President Gorakh Megh confirmed that an MoU will besigned but refused to elaborate since discussions are still at a preliminary stage.

The 7.5-acre plot at Bandra Reclamation in the vicinity of the Lilavati Hospital and Rang Sharda hotel-cum-auditorium was mired in a tug-of-war as Housing Minister Suresh Jain had directed MHADA last year to return it to the government; two successive MHADA CEOs refused to toe the government line. Reports were that the Shiv Sena-BJP government was entertaining multi-crore proposals from private developers including diamond merchant and film financier Bharat Shah. MHADA meetings on this issue turned into explosive sessions as the CEOs resisted the minister's instructions. Both Swadheen Kshatriya and Subodh Kumar was transferred.

However, the government's new proposal may set off fireworks too as senior MHADA officials doubt the viability of a convention centre on that plot. They are pressing for a change in the landuse itself - from convention centre to commercial complex so that the land could be developed and hawked inthe real estate market hopefully for a decent profit. It may just re-arrange the springboard for the government to allow private developers to use the land in future.

A convention centre may not be as viable as a commercial complex, that too when MMRDA holds a blueprint for another in the same area, they fear, whereas a commercial complex could generate up to Rs 300 crore a year for MHADA. Indications are that the complex might eventually be a combination of a convention centre and a commercial complex.

Housing Secretary Govind Swaroop also admitted that a convention centre would be built on the MHADA plot. And HUDCO officials were confident that a convention centre, on the lines of the Habitat Centre in New Delhi, will be constructed on the 7.5 acre plot. They are confident that the MoU can be signed by end June after which a HUDCO team will prepare a feasibility report.