NDMC eyes property development to overcome cash crunch

From ET Realty

New Delhi: Desperate times call for desperate measures. In a bid to generate revenue to clear a huge salary backlog, North Delhi Municipal Corporation (NDMC) has proposed that six of its properties be developed by National Building Construction Corporation (NBCC) and, then, sold to meet the project cost and generate additional revenue.

If passed by the standing committee, the proposal will be forwarded to the House for approval. According to commissioner Praveen Kumar Gupta, the corporation wants to make 84,013 sqm in Model Town fully residential whereas it seeks to develop 1,01,264 sqm in Azadpur as commercial and residential space. Also, it wants to utilise 31,525 sqm area in Dhaka for residential purposes and transform 4,200 sqm of Cup and Saucer restaurant into office space. Another 13,500 sqm on Minto Road would be developed into office space or a commercial complex, and 3,200 sqm of the Idgah Slaughter House land into a shopping complex with car parking.

Taking a cue from the East Kidwai Nagar model that NBCC took up at the behest of the ministry of urban development, the corporation wants the PSU to develop its land parcels into real estate ventures. The NBCC will charge 7% for project management consultancy apart from a 15% interest per annum on its investment and 1.7% as marketing charges on the total lease.

The commissioner on Friday placed the draft MoU before the standing committee, which, if cleared, would authorise the civic body to sign an agreement with NBCC. Councillors, however, have raised doubts. “We are looking at quick revenue generating measures. This will take time. Plus, why should we pay so much to a government agency?” asked an official.

Gupta told the standing committee that these properties were over 20 years old and the corporation didn’t have time or expertise to develop them.

Leave a Reply

Your email address will not be published. Required fields are marked *