NEW DELHI: The Delhi Development Authority (DDA) is poised to generate over ₹29,700 crore in the next 55 years by shifting focus from direct land sales to long-term land monetization. This strategy involves annual license fees from three key projects in Dwarka, aiming to enhance revenue while promoting urban infrastructure development.
The three projects include a five-star hotel in Sector 23, Delhi’s inaugural Transit Oriented Development (TOD) project in Sector 22, and a 600-bed super-speciality hospital in Sector 9. This approach represents a significant shift in DDA’s operations, allowing it to unlock value from limited land resources without giving up ownership. Tenders for all three projects have been issued, with clear deadlines for completion.
DDA officials emphasized the transition away from traditional land sales to leasing under a licensing framework, which spans up to 55 years. Revenue is generated through competitive bidding for annual license fees, providing a steady long-term income while maintaining control of public land.
“This model enables the DDA to monetize land in a sustainable manner, providing recurring revenue while keeping ownership with the authority,” stated a senior official.
The first project is a five-star hotel on nearly 2.5 acres in Sector 23, designed to accommodate at least 200 rooms. The project has been awarded with an annual license fee of ₹16.1 crore plus GST, with a construction timeline of 42 months. It is estimated to generate around ₹6,370 crore for the DDA over the license period.
The second project, located on approximately 10.4 acres in Sector 22, marks the first TOD project in Delhi to be auctioned under this model. Described as a mixed-use development, it will feature luxury retail, office spaces, and residential units. This project has a 36-month construction deadline and an annual license fee of ₹27.5 crore plus GST, projected to yield about ₹10,887 crore during the lease.
The largest endeavor is a 600-bed NABH-accredited super-speciality hospital situated on nearly 9.3 acres in Sector 9, awarded to Apollo Hospitals Enterprise Ltd., with a 48-month completion timeline. The annual license fee for this project is ₹33.3 crore plus applicable GST, expected to contribute approximately ₹12,522 crore over 55 years, making it the most lucrative among the three.
“In addition to financial advantages, these developments are anticipated to attract substantial private investment in public land, significantly enhancing hospitality, healthcare, commercial, and residential infrastructure in Dwarka,” officials noted.
