Unsold BDA flats cause funds crunch for Bengaluru steel flyover

BENGALURU: The Bangalore Development Authority (BDA) is scrambling to mobilise resources for the controversial steel flyover as its housing projects do not have many takers and proceeds from their sale will not be sufficient for the Rs. 1,791 crore project. What’s more, the state government is not extending any financial support to the agency .

Sample this: The BDA notified allotment of 1,097 1BHK flats in Alur for the economically weaker section (EWS) and general categories. The agency has received only 300 applications. It has taken up construction of 13,500 housing units at several locations around the city’s periphery. Although this project is valued at Rs 2,300 crore, the expenditure in developing this is around Rs 1,300 crore.

Two-thirds of BDA ‘s income comes from developing housing sites and apartments. While there used to be a great demand for the agency’s projects among Bengalureans, there has been a lukewarm response for its projects in the recent past. “There’s enough housing available in the private sector where people are assured of location and quality. Why will someone buy something outside the city , given BDA’s troubled past,“ Bengaluru Vision Group member RK Misra asks.

The BDA realised Rs 173.52 crore as against the expected Rs 425 crore from site sales at Nadaprabhu Kempegowda Layout. There was no sale of commercial sites at Konadasapura, where it expected Rs 150 crore. This fiscal, BDA estimates to collect Rs 1,277 crore from sales at Kempegowda Layout, but might end up realising only Rs 522 crore (going by last year’s performance), according to Janaagraha’s analysis. “The BDA is sitting on a lot of resources.

Available sites will be sold periodically and the proceeds will be used exclusively for the (steel flyover) project. If they fall short, they have to raise a loan externally ,“ BDA chairman and additional chief secretary (urban development) Mahendra Jain said.

Former urban development minister S Suresh Kumar said: “At Kempegowda Layout, the BDA collected roughly Rs 800 crore, of which it had to return Rs 690 crore to unsuccessful applications. In June, the BDA wrote to the government saying it cannot take up the flyover project due to financial constraints.“

Urban expert Ashwin Mahesh pointed out a flaw in its approach.“You sell plots not to fund projects but to provide civic amenities.”

Credits ET Realty


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