Bidders show little enthusiasm for the project under BOT mode
There are 26 market complexes under the jurisdiction MCH Plan to demolish dilapidated structures and build modern complexes
HYDERABAD: The much-vaunted scheme of Municipal Corporation of Hyderabad (MCH) to build modern markets under private-public partnership mode has elicited very poor response. However, three of the four proposed multi-storied parking complexes got at least one bidder each.
Just one firm (Manjeera Estates) had responded to one first such tender notification recently for taking up the project under Build, Own and Transfer (BOT) mode.
This was to re-build the market at the prime zone of Ameerpet having an area of 1,036 sq.mts.
New markets were proposed to be rebuilt at Punjagutta (776 sq.yards), Begum Bazar (3,3011 sq.mts) and Mallepally (755 sq.mts).
Apparently, despite two of the sites being located in high commercial areas there have been no takers for these ventures.
There are 26 market complexes under MCH jurisdiction and the plan to demolish the dilapidated structures and go in for modern commercial complexes had been in the making for many years now.
Not only are the buildings in dire need of an overhaul, the corporation was also earning peanuts, as rental values have been in single digits for decades when rents have to be hiked by one-third every three years!
Officials admit that some tenants have leased the properties again for a more realistic market price while the MCH does not earn even Rs. 10,000 per annum. Recalcitrant tenants were left scotfree with local political pressure being conveniently cited as an excuse for the glaring administration lapse all these years.
The corporation has now prepared a base architectural plan for each market and prospective developers have to improve on it to come up with a full-fledged building plan.
Existing tenants are to get a 20 per cent concession on the buying price to be fixed as a sop.
"Prospective bidders have complained about some stiff conditions in the tender. We are trying to negotiate with them. After all, this is a first such BOT project in the country and it is a new feature even for us," explains D. Jagadeeshwar, Estate Officer.
One firm each including GVK for site near Jalagam Vengal Rao Park, Future Age Infrastructure for sites at Ghasmandi and at Secunderabad Gurudwara and Patel Infrastructure for the latter had expressed interest in taking up construction of multi-storied parking complexes.