The Times of India           09.12.2010 

MMC to take up 2 crore development work in city

Indian Express  08.12.2010

Soon: Another township near Mohali airport

After finding record-breaking takers for its first integrated independent township Aerocity, the Greater Mohali Area Development Authority (GMADA) is coming up with another self-contained township in vicinity of the upcoming international airport at Mohali. Besides residential, the new township will also have commercial and industrial components.

IT Knowledge Park, as it has been initially christened, will come up over 1,500 acres spread across four sectors — 66 Beta, 82 Alfa, 83 Alfa and 101 Alfa — on 300-feet-wide road leading to international airport from Kharar-Banur Road.

Of the 900 acres, 60 per cent will be used for residential and commercial purposes while industrial component will come up on the area comprising 600 acres.

Mohali Master Plan envisages usage of Sector 66 Beta for institutional and aviation industry; international business; tourism related projects; export and import houses; logistic companies, warehouses and cold storages while Sectors 82 Alfa, 83 Alfa and 101 Alfa are stipulated for industrial usage.

The ambitious project, which entails estimated investment of Rs 3,731 crore, will not only give big returns to GMADA but will also provide housing, commercial and industrial space to thousands of interested investors.

Taking in-principle decision to take up the project at its Board of Directors meeting chaired by Punjab Chief Minister Parkash Singh Badal in Chandigarh recently, GMADA has requested the Department of Housing and Urban Development to issue necessary notification for acquisition of land falling under six villages ¿ Rurka, Papri, Chachumajra, Manauli, Sainimajra and Chaumajra, a senior official told Chandigarh Newsline.

As per the initial estimates worked out by GMADA, the acquisition of 1500 acres land will require Rs 2250 crore at the rate of Rs 1.5 crore per acre and another Rs 750 crore will be required for the development of the project site, including Sector dividing roads and other internal works, at the rate of Rs 50 lakh per acre. Besides, Rs 562 crore will be borne on account of interest at the rate of 10 per cent per annum on payment of land for 30 months, Rs 94 crore for paying maintenance charges of 2.5 per cent per annum on development works’ expenditure and Rs 75 crore on administrative charges at the rate of 2.5 per cent per annum on expenditure of development works. This makes the total estimated expenditure to Rs 3731 crore.

Experts calculated that of the total 1500 acres acquired land, 900 acres will be available for sale after utilization of 600 acres under roads, other allied development works and carving out public utility services inside the township.

It is estimated that with the sale of 540 acres, which makes 60 per cent of the area available for sale, for residential and commercial use, GMADA could fetch Rs 4181 crore while remaining 40 per cent saleable area comprising 360 acres will be sold for industrial use, the tentative rate of which is not yet worked out. The residential area sale rate has been tentatively calculated at the rate of Rs 12000 per square yard, which is at par with Aerocity rate.

Deciding to offer Land Pooling Scheme (LPS) besides cash compensation option to the landowners, GMADA authorities want maximum landowners opt for LPS, which entails developed 968 square yards residential and 121 square yards commercial sites each instead of cash compensation against each acre of acquired land. “If all landowners opt for LPS, we could save Rs 2250 crore on account of cash compensation and this will reduce our total expenditure to Rs 919 crore,” said the official.

In case of total land acquired under LPS offer, the amount to be fetched from sale of residential and commercial sites will also come down from Rs 4181 crore to Rs 1,176 crore while the sale proceeds of industrial component, reason the officials, could not be calculated at this juncture.

However, GMADA officials are hopeful that if not entire, they will be able to motivate at least half landowners to opt for LPS.

In the absence of requisite funds for taking up the project, GMADA decided to procure loans from banks/financial institutions as they had already done for developing Aerocity.

But how much it requires for cash compensation, for that GMADA will invite expressions of interest from the landowners, following which the proceedings to procure loan will be initiated. For this purpose, a financial advisor or some consultant agency will be hired. GMADA Chief Administrator was authorized to decide the same. For negotiating with banks/financial institutions on rate of interest, terms and conditions on the loan amount, GMADA Chief Administrator will constitute a three-member panel of GMADA officials.