MCC to get ₹3.07 crore annual revenue from redeveloped Central Market after three years

Lead bidder Somayaji Estates Pvt. Ltd. commences redevelopment work at an estimated cost of ₹114 crore

Published - December 15, 2022 09:17 pm IST - MANGALURU

Construction works under way at market complex (Central Market) by Smart City Limited project in Mangaluru on Thursday.

Construction works under way at market complex (Central Market) by Smart City Limited project in Mangaluru on Thursday. | Photo Credit: H.S. MANJUNATH

The Mangaluru City Corporation (MCC) will get ₹3.07 crore revenue from the redeveloped Central Market after three years when the project gets completed with escalation of 5% Compounded Annual Growth Rate, said Corporation Commissioner Akshy Sridhar on Thursday.

Interacting with media persons during the ‘Meet the Press’ programme organised by the Dakshina Kannada Union of Working Journalists here, Mr. Sridhar said the concessionaire, Mangaluru-based M/s. Somayaji Estates Pvt. Ltd., has already commenced the work on the 3.61 acre plot that earlier housed the Central Market building.

Being the lead bidder, M/s. Somayaji would build the structure spread across 15,000 square metres in three years under Design, Build, Finance, Operate and Transfer basis with an initial concession period of 30 years, including the three years construction period. Thereafter, the builder and the MCC could extend the tenure for another 30 years on the ‘first right of refusal’ basis. The builder would also pay an upfront premium of ₹3.5 crore at the rate of ₹50 lakh a year for the first three years.

The Mangaluru Smart City Ltd. had prepared the Concession Agreement, he added.

Infrastructure development

Dwelling upon infrastructure development in the city, Mr. Sridhar said the Corporation had earmarked ₹66 lakh for the rejuvenation of 12 identified lakes/tanks and development of other tanks. The Mangaluru Urban Development Authority has taken up rejuvenation of 41 lakes/tanks, out of which work on 21 tanks, including Gujjarkere lake, was already complete. Rejuvenation of the Kavoor lake was under way, he added.

The civic body was spending ₹111 crore on road widening and development of concrete roads across the city, the Commissioner said, adding another ₹30 crore was being spent for improving junctions.

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