Runwal Enterprises has secured a 200-acre land parcel in the coastal town of Alibaug, located near Mumbai, for a Rs 20,000 crore integrated township initiative under the Maharashtra Regional and Town Planning (MR&TP) Act of 1966, which regulates large-scale and mixed-use developments within the state.
The firm, promoted by Subodh Runwal, intends to execute the project featuring a blend of residential and commercial spaces, including a five-star hotel and social amenities such as a golf course, all subject to planning regulations and infrastructure commitments. This project, which has a total development potential of approximately 20 million square feet, is set to be completed over a span of seven years.
“With the government’s initiatives on the infrastructure front, Alibaug has become a key destination for residential and mixed-use projects, offering excellent connectivity to Mumbai while providing a picturesque and sustainable living environment,” stated Subodh Runwal, director of Runwal Enterprises, in an interview . “We are looking to invest around Rs 9,000 crore in this venture, ensuring that the development meets global standards on this expansive land parcel, which is bordered by the sea on three sides,” he added.
While the overall gross development value of the project is estimated at around Rs 20,000 crore, the total investment will encompass the costs associated with land acquisition, construction, and necessary approvals. The development will be carried out in several phases, with investments synchronized to approvals, construction schedules, and market absorption, rather than being allocated all at once. The land acquisition has been arranged through a combination of an upfront payment and a space-sharing agreement with the landowner, a privately held entity.
According to Runwal, part of the compensation will be settled through a share of the developed real estate instead of a complete cash payment. Such hybrid arrangements have become increasingly prevalent in substantial land transactions, enabling developers to preserve capital while aligning the interests of landowners and project developers throughout the duration of the project.
Alibaug, historically recognized as a retreat and leisure spot for affluent residents of Mumbai, is increasingly attracting the interest of developers due to enhancements in connectivity.
Improvements in infrastructure within the area, such as upgraded road access and ferry services, have significantly decreased travel time from Mumbai, broadening the region’s appeal from merely holiday homes to encompass larger residential and mixed-use developments. Projects initiated under the MR&TP Act involve extensive contiguous land parcels and necessitate that developers establish internal infrastructure, including roads, water supply, drainage, open spaces, and social amenities.
In exchange, developers gain flexibility in planning, enhanced development potential, and the capacity to phase construction and launches over a prolonged period. In recent years, large township developments have gained momentum as developers pursue scale, long-term visibility, and regulatory certainty.
Unlike independent residential projects, these developments enable developers to diversify their product offerings and time their launches according to demand cycles, all while fostering self-sustaining urban clusters. Runwal Enterprises’ Alibaug township contributes to the expanding pipeline of large-scale developments surrounding Mumbai’s outskirts, as developers seek opportunities for growth beyond the city’s central markets.
This acquisition occurs at a moment when developers are exercising caution in land purchases, supported by phased investments and development-linked consideration frameworks. Industry experts indicate that township projects provide planning advantages and long-term scale benefits, with execution results influenced by approval timelines, infrastructure delivery, and demand visibility across various cycles.
