CHENNAI: The Chennai Metropolitan Development Authority (CMDA) has decided to create a two-km buffer zone for commercial development along the entire 62km stretch of Outer Ring Road (ORR) by taking possession of land with the consent of landowners. The government earlier planned commercial development on 50-metre strip of land abutting the road.
On Monday, Tamil Nadu Housing Minister S Muthusamy said the CMDA has planned to take possession of land along Outer Ring Road under a land pooling scheme. “We will develop the land and give it back to owners,” he said. Land pooling is a process by which landowners give their land to government to develop infrastructure through plot reconstitution. The portion used for developing amenities is gifted to the government and landowners get back a part of the developed land with higher market value.
Official sources said the CMDA is planning to first monetise 300 acres in the 50-metre stretch by auctioning it to private players. A Shankar, Chief Operating Officer, Strategic Consulting and Valuation, JLL West Asia, said the land pooling scheme will be a game-changer as it’s a win-win deal for the landowners and State. “Landowners will be willing to participate due to continued title ownership with a developed land. The model had already been successfully implemented in Delhi,” he said.
Sources said, the CMDA will soon appoint a valuer for assessing the market value. Similarly, land-use norms will be fixed before the auction. Development of software to facilitate e-auctioning of land is also on, sources added.
The project was planned after Tamil Nadu Urban Infrastructure Financial Services Limited hired CBRE, a global commercial real estate and investment services firm, as consultant for preparing a feasibility report to develop 50-metre stretch along the road for transit-oriented growth. It is akin to development along key corridors in Delhi and Ahmedabad and international models such as Curitiba, capital and largest city in the Brazilian State of Paraná, and Portland, the largest and most populous city in the US State of Oregon.