Private sector can now buy into Delhi’s govt colony revamp
The private-sector can now plan to redevelop government colonies in the heart of Delhi .The funds for redevelopment be organised from the corporate sector by undertaking to allot, on a freehold basis, 20% of the total residential space to be created to companies who pay up in advance as proposed by National Building Construction Company (NBCC).
NBCC plans to rebuild government colonies in Kasturba Nagar, Netaji Nagar and Thyagraj Nagar in Delhi, and the commercial space could also be leased out to the corporate. As yet private sector has not been allowed in the redevelopment scheme.
The cost of redeveloping these colonies, is estimated to be around R10, 000 crore, which includes building 8,000 flats in the heart of Delhi. Once corporate take 20%, the rest of the flats would go to the government’s quota for its officers.
NBCC chairman and managing director AK Mittal aforementioned : “We have proposed to the ministry of urban development that the private sector should also be allowed to bid for flats and commercial space to meet fund requirements.”
Presently, there are 3,000 government flats in the said colonies out of which most buildings are double-storeyed. The much-needed renovation will give the city a swankier look, besides unlocking a lot of prime real estate as stated by sources.
NBCC expects to start work on the project in 18 months, and the multi-storey residential-cum-commercial complexes will be mini-townships equipped with facilities like clubs, market areas, healthcare centres and schools.
The private sector was earlier also roped in 2007 for urban re-development in the capital The first such project was of Moti Bagh near the upscale diplomatic enclave, which was funded by the R620-crore realised from the sale of 3 acres of government land on which the Leela Palace hotel in Chanakyapuri now stands.
Only public sector units (PSUs) and ministries are allowed to bid for the commercial space and flats by NBCC, which is already redeveloping East Kidwai Nagar near AIIMS in Delhi.
Mr. Mittal added “In East Kidwai Nagar, the commercial space and 10% of residential space were reserved for PSUs and ministries, but for future projects, we have proposed to allow participation of private sector as well and increasing the limit to 20-30%.”
The 86-acre East Kidwai Nagar project, which is being renovated at a cost of R5, 000 crore, has signalled the success of similar projects.
The largest space has been booked by EPFO, of around 2.11 lakh sq ft commercial area and 1 lakh sq ft residential area for R790 crore, and the rest 60% of the space has been booked by PSUs and government departments such as EPFO, Sebi, NMDC, Punjab and Sind Bank, IDBI, NHPC, Indian Oil, the Chhattisgarh government and Oriental Insurance.
Source: The Financial Express
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She entered the industry somehwere in 2007 I think, or I maybe even before.