The Tamil Nadu Housing Board is still mulling on whether to go in for public private partnership or self finance scheme (SFS) to develop vacant lands in Ashok Nagar and Koyambedu, according to sources.
Although the Tamil Nadu Urban Infrastructure Financial Services Limited has selected transaction advisory consultants to develop the vacant lands, the project is yet to be implemented for the past one year.
The site in Ashok Nagar is located between K K Nagar Bus Depot and ESI Hospital and covers an area of 3.73 acres, while the site in Koyambedu is located in two parcels in the SAF Games Village with an extent of 4.28 acres and 1.36 acres.
Darashaw was appointed as transaction advisory consultant for Ashok Nagar vacant land development, while Inmaas was appointed transaction advisory consultant for Koyembedu vacant land development.
Sources said that despite the tenders being floated initially by the two consultants, there was no response, forcing TNHB to look into other alternatives.
On October 29, 2012, certain developers were invited to TNHB office in Nandanam to offer suggestions on construction of a multi-storey commercial complex, as well as a multi-storey residential complex in Koyambedu. Among the developers, P N R Constructions came forward to carry out the scheme under joint venture instead of public private partnership mode.
They also insisted to reduce the quantum of upfront money. A high power committee meeting to look into the issue never materialised and was disbanded with Tamil Nadu Infrastructure Development Board (TNIDB) coming into picture.
Later, a discussion was held with the consultant Inmass on the feasibility of PPP mode and self finance scheme. It is learnt that the public private partnership mode with 10 per cent upfront money for land cost as initial amount and the balance at the end of the project period is likely to get the approval of the government.
Similarly, after no response was received to the tender for construction of residential building at Wood Working Unit in Ashok Nagar, following which a meeting was held with developers who sought reduction in the upfront money.
Sources said that TNHB analysed the feasibility of taking up the scheme under the newly- formed Tamil Nadu Infrastructure Development Board (TNIDB). A detailed report was submitted to take up the project under self finance scheme instead of PPP.
However, the consultant Darashaw was asked to perepare a detailed report for comparision between PPP mode through TNIDB and SFS mode by TNHB. Following which a report recommending executing the work in PPP mode by collecting 20 pc of land cost as upfront money and balance to be collected after 18 months in six installments has been proposed to the government.