NAGAPATTINAM: The pre-auction of shops at the Rs 30.40 crore bus stand being built at Sellur along the East Coast Road failed to draw adequate response on Wednesday, with just 26 shops sold out of a total 80 shops planned in the facility.
The Nagapattinam municipality started construction of the bus stand in September 2024 and it was to be completed on August 31, 2025. But only the basement and columns have been raised so far. According to municipality sources, the work is progressing at a snail's pace allegedly due to paucity of funds.
A senior official from the municipality told TNIE that the state government had sanctioned Rs 15 crore, and the rest was to be borne by the municipality. "The municipality does not have sufficient funds to meet this share, which has resulted in the delay." the official added.
"The area where the bus stand is being constructed is a low-lying ground, and almost the entire funds sanctioned by the government has been spent on raising the basement and the pillars to the required height.
For further construction, we have to seek out loans," the official said adding the civic body is looking to secure loan before the 2026 Assembly election dates are announced as the model code of conduct will come into force.
Ahead of the auction, traders and the Nagapattinam Chamber of Commerce opposed it saying the bus stand construction was yet to get over. "Despite the slow pace of work, the municipality has gone ahead with the auction. Very few turned up as traders are uncertain about when the project will be completed.
Traders are not willing to invest without clarity on when the facility would be inaugurated," said ASN Suresh, secretary of the chamber. However, the municipality official reasoned that it was common to hold pre-auction for such projects.
"The pre-auction was aimed at raising funds to reduce the loan requirement and, in turn, minimise the interest burden on the local body," said the official.
According to sources, the auction fetched the municipality Rs 98 lakh. Apart from 80 shops, the facility will include two restaurants, ATM centres, parking space and public toilets. Sources said another auction would be held soon for the unsold shops.