The Times of India  03.12.2010

VARANASI: The Housing and Urban Development Corporation (HUDCO) on Thursday consented to provide loan to the Varanasi Development Authority for its ambitious project of creating institutional hub in trans-Ganga area.

It is worth mentioning here that the VDA has decided to create an institutional hub in trans-Ganga area. The VDA has selected the land of three villages, viz Katesar, Kodopur and Domari, for this project. After the strips of sandbed and green zone, this project will take place on a stretch of 300 hectare land. Under this project, the land will be allotted only for running educational and other institutions.

According to VDA vice-chairman RP Goswami, this project has been divided in two phases. In the initial phase, 120 hectare land of Katesar and Kodopur villages will be acquired while in the second phase the land of Domari village will be acquired. To begin the process of land acquisition for the first phase of the project, the VDA has already deposited Rs 11 crore with the land acquisition department while a total of Rs 54 crore is required to complete this process.

"The first phase of the project will cost Rs 115 crore," said Goswami and added that amount was required for completing the process of land acquisition as well as development of the area before allotment of land to the institutions. To arrange for the fund, the VDA had contacted the HUDCO. On getting the proposal, the HUDCO had sent a team of its officials who stayed in the city on Wednesday and Thursday. The team of HUDCO officials visited the site of the proposed project.

After becoming convinced about the viability of the project, the HUDCO team expressed interest in providing a loan to the VDA, disclosed Goswami. He said that the HUDCO team had assured to complete the formalities of sanctioning the loan by December end. He said after getting the loan amount from the HUDCO, it would be forwarded to the state exchequer after which the process of land acquisition would be intensified. He said it was expected that the process of land acquisition and taking possession on acquired land would be completed in four-five months after which the project would come on the floor.

As per the norms of the government, 10-15 per cent land would be reserved for the weaker sections of the society. The bridges on the Ganga would connect the institutional hub with the city.

The VDA is expecting that the income generated from this project will not only pave the way for an early completion of the second phase of this project but the project will also generate the margin money for seeking loan for other major projects.