Bangalore Development Authority pushes project for renovation of complexes with new govt
Top BDA officials met Bengaluru Development Minister DK Shivakumar and MP DK Suresh last week and impressed upon them the need to go ahead with the job entrusted to the contractors, sources said.
BENGALURU: With the rebuilding of seven commercial complexes of the Bangalore Development Authority (BDA) on the Public-Private Partnership model put on hold by the previous State government in October 2019, the Authority’s plans to earn a six-fold increase in rental income took a severe beating. It is now attempting to revive its plan through the new government.
Top BDA officials met Bengaluru Development Minister DK Shivakumar and MP DK Suresh last week and impressed upon them the need to go ahead with the job entrusted to the contractors, sources said. BDA complexes in prime areas of HSR Layout, Austin Town, Koramangala, Vijayanagar, Sadashivanagar and Indiranagar house 566 shops. Many of these 30-year-old shops were in a pathetic shape and fetched them annual rents of just Rs 7 crore.
The contract to rebuild and operate them for the next 30 years was handed over to private concerns on March 22, 2019. The floor area ratio of 1 was increased to 3.5 offering much more built-up area in the complexes thereby facilitating multi-storeyed construction. “We planned to earn Rs 38.98 crore when they were fully ready,” a source said.
While Indiranagar complex was contracted to Maverick Holdings, the remaining six were handed over to MFar Developers. The contractors were expected to invest nearly Rs 700 crore in these buildings and own them for 30 years.
“BDA was to get revenue from 30 per cent of the space occupied by shops, while the remaining 70 per cent was to go to the private party. Only with Indiranagar, it was 35 per cent for BDA,” another source said. In Indiranagar, BDA’s rental earning would have gone up from Rs 2 crore to Rs 20 crore.
“After the contract was awarded in March 2019 and a time frame of two years was set for completion, it was put on hold. The contractors had spent a good sum of money rehabilitating the occupants. 75% of them have vacated, while a few continue by paying a small sum as rent,” an official said.
BDA earns only Rs 30,000 annually from the few occupants refusing to leave. “The contractors were selected after two rounds of tendering was dropped. Going ahead with it will help boost our revenue,” the official said.