TIRUCHY: Several councillors of the Tiruchy city municipal corporation have expressed disappointment over the civic body's decision to lease 14.16 acres of its land at K Sathanur village near the new bus stand in Panjappur to TIDCO for a period of 45 years for establishing a TIDEL park.
According to sources, the civic body has fixed Rs 282 per sq ft as lease amount, but councillors said the market value of the land is much higher and the civic body should develop the land on its own to generate higher revenue.
As per the plan, a Tidel Park will be built under a Special Purpose Vehicle (SPV) called Tidel Park Tiruchy Limited, formed in partnership between TIDEL Park Limited and the Tiruchy Corporation. The corporation commissioner will serve as a director of the SPV. The corporation will lease its land for Rs 23.75 crore for 45 years, which is 50 per cent of the total land cost of Rs 47.50 crore. The resolution was introduced during the monthly council meeting on October 31 and passed despite objections raised by some councillors over the lease rate.
Speaking to TNIE, AIADMK councillor KK Ambikapathi said, "Why should we give our land to another agency? By giving away our land, we lose both the property and potential income. The corporation can ensure long-term sustainability if it builds the TIDEL Park on its own."
S Suresh of the CPI (M) said, "We do not support giving projects to private sector and want the government to handle such schemes." A senior corporation official, however, said, "We have provided the land and, in return, received shares. Every year, we will receive 25% of the total revenue. The government approved the project after an analysis by the Finance Department. The Tidel Park is being built by TIDCO, but they did not have land, so we provided it and will receive the corresponding amount. Why should we build it when it does not fall under the purview of municipal administration?"