NDMC hopes to raise Rs 5,000 crore from highrise

In an attempt to put an end to its financial woes, the North Delhi Municipal Corporation (NDMC) is going to build a skyscraper at Minto Road in Central Delhi. It expects to raise a minimum of Rs 5,000 crore by leasing or selling out space at the proposed property.

The 1.35 hectare prime property will be a stone’s throw away from Connaught Place. It will be very close to both New Delhi Railway and the Metro Station.

A proposal to utilise the site for commercial usage has been approved recently by the standing committee. A senior NDMC official said that as per initial plan, the corporation would construct a high-rise commercial building similar to that of the Civic Centre. The NDMC has leased out 40 per cent space of Civic Centre to the income tax department at a cost of Rs 1,800 crore for a period of 90 years. “The proposed high-rise will be leased or sold out primarily to government department or agencies instead of private players. This proposed building will also be rented for shorter duration to earn maximum rental revenue. At the existing circle rate and prime location of the site, the NDMC would expect at least Rs 5,000 crore from the said property.” The move is seen as an attempt of cash strapped NDMC to fatten its empty coffers. “The corporation is reeling under a loan of Rs 2,600 crore. It owes Rs 1,500 crore to the Delhi government and Rs 750 crore to contractors. The remaining loans have been diverted from other heads and the amount withdrawn from provident fund head is being utilised for salaries to its employees,” said a senior NDMC official.

NDMC standing committee chairman Paravesh Wahi told this newspaper that process for the commercialisation of the said plot will start soon. “Recently the standing committee changed the land use of the plot. A detailed project report will be prepared for the proposed construction.”