The Tamil Nadu Housing Board is still mulling on whether to go in for
public private partnership or self finance scheme (SFS) to develop
vacant lands in Ashok Nagar and Koyambedu, according to sources.

Although
the Tamil Nadu Urban Infrastructure Financial Services Limited has
selected transaction advisory consultants to develop the vacant lands,
the project is yet to be implemented for the past one year.

The
site in Ashok Nagar is located between K K Nagar Bus Depot and ESI
Hospital and covers an area of 3.73 acres, while the site in Koyambedu
is located in two parcels in the SAF Games Village with an extent of
4.28 acres and 1.36 acres.

Darashaw was appointed as transaction
advisory consultant for Ashok Nagar vacant land development, while
Inmaas was appointed transaction advisory consultant for Koyembedu
vacant land development.

Sources said that despite the tenders
being floated initially by the two consultants, there was no response,
forcing TNHB to look into other alternatives.

On October 29, 2012,
certain developers were invited to TNHB office in Nandanam to offer
suggestions on construction of a multi-storey commercial complex, as
well as a multi-storey residential complex in Koyambedu. Among the
developers, P N R Constructions came forward to carry out the scheme
under joint venture instead of public private partnership mode.

They
also insisted to reduce the quantum of upfront money. A high power
committee meeting to look into the issue never materialised and was
disbanded with Tamil Nadu Infrastructure Development Board (TNIDB)
coming into picture.

Later, a discussion was held with the
consultant Inmass on the feasibility of PPP mode and self finance
scheme. It is learnt that the public private partnership mode with 10
per cent upfront money for land cost as initial amount and the balance
at the end of the project period is likely to get the approval of the
government.

Similarly, after no response was received to the
tender for construction of residential building at Wood Working Unit in
Ashok Nagar, following which a meeting was held with developers who
sought reduction in the upfront money.

Sources said that TNHB
analysed the feasibility of taking up the scheme under the newly- formed
Tamil Nadu Infrastructure Development Board (TNIDB). A detailed report
was submitted to take up the project under self finance scheme instead
of PPP.

However, the consultant Darashaw was asked to perepare a
detailed report for comparision between PPP mode through TNIDB and SFS
mode by TNHB. Following which a report recommending executing the work
in PPP mode by collecting 20 pc of land cost as upfront money and
balance to be collected after 18 months in six installments has been
proposed to the government.