The Hindu 08.08.2012
VMC eyes commercial complexes to augment revenues
The cash-strapped Vijayawada Municipal Corporation (VMC)
has set its eyes on commercial complexes owned by it to improve income.
The corporation is contemplating augmenting its revenues through its
commercial complexes and shops in the city.
The VMC has more than 60 complexes/buildings in the city that generate revenue of more than Rs.56 lakh per month.
In a way, the lease amounts of the shops would be hiked if proposals were to be implemented.The
corporation leased out 3,000 shops situated in these complexes and
buildings. The lease period of 12-years for many of these shops is
nearing completion.
Feasibility
Municipal
Commissioner Md. Abdul Azeem has asked the officials to study the
feasibility of constructing a few more floors on the existing commercial
complexes.
The revenue wing has been asked to assess
the present revenue through the complexes and exploring the other
avenues to augment the revenues. The engineering wing officials would
have to assess the structural stability and feasibility of constructing
additional floors. Complexes like Kaleswara Rao Market are in existence
for more than two-decades.
More than ambitious plans,
a big question before the officials is whether they could go for
additional constructions as the Corporation had mortgaged some of its
prime and most revenue-generating properties.
The VMC had mortgaged Vastralatha, I.V. Palace and K.B.N. Shopping Complex to avail itself of the HUDCO loan of Rs.100 crore.The
Vastralatha, a shopping complex near K R Market in One Town, is valued
at Rs.70 crore. It is the hub for textile business in the city.
The
Municipal Corporation offered assets like the Ajitsinghnagar Sewage
Treatment Plant and the Makineni Basavapunnaiah Municipal Corporation
Stadium as collateral, but the banks wanted something with some real
estate value and remunerative. So, these properties were mortgaged to
avail itself of the loan facility.