Business Line 14.06.2013
Slum Clearance Board to rope in pvt player for multi-storeyed building
The Tamil Nadu Slum Clearance Board has decided to rope in a
private player to construct a multi-storey building in the heart of
Chennai. This is the first such project to be taken up in Tamil Nadu.
The department will give 32.95 grounds (one ground is 2,400 sq ft) of
land available with it on Anna Salai, Nandanam, for developing the
building.
The tentative project cost is expected to be around Rs 120 crore.
The concession period is likely to be for 30 years. The potential
concessionaire will be chosen through a two-stage competitive bidding
process under the private-public-partnership (PPP) mode.
Being the first time, the department does not want to take any
chances. It will first get views of the potential investors before
finalising the bid documents by inviting them to participate in an
Expression of Interest.
The potential concessionaires will get an opportunity to share their
views on the possible model for the proposed development to make the
project attractive to the stakeholders. The department said that the PPP
approach is more likely to prove attractive as the project is of a
reasonable size involving creation of new infrastructure at huge
investments. It had appointed Tamil Nadu Urban Infrastructure Financial
Services Ltd (TNUIFSL) as transaction adviser to conceptualise the
project and examining its techno-financial feasibility. The TNUIFSL said
that the project is viable to be taken up in the PPP mode and can
attract private investments.
The Board has constructed an office complex utilising an area of 6.78
grounds on stilts with four floors above. It is presently used by the
Tamil Nadu Urban Finance & Infrastructure Development Corporation
Ltd and TN Power Finance. However, the department has now proposed to
construct a commercial-cum-office complex in the entire area of 32.95
grounds demolishing the existing building.
It is also proposed to utilise the available premium FSI along with
the allowable FSI allowed as per CMDA norms under Second Master Plan
considering the prevailing huge land cost in that area.
The concessionaire has to hand over 20.56 per cent of the area
developed to the Board and shall generate revenue from the remaining
area. The concessionaire has to demolish the existing building in the
site, only after completing the entire construction and putting it to
use.
The implementation of the project will result in improved price
realisation for the construction and will create direct and indirect
employment opportunities.