Nagpur: To get some relief from its severe financial crisis, Nagpur Municipal Corporation (NMC) has started the process to auction away the Anand Talkies land, with the structure on it. This will be the first sale of assets by NMC in its 66-year history to garner funds.
Additional municipal commissioner Ravindra Kumbhare told TOI NMC will conduct e-auction to maintain transparency and healthy competition. "We will identify a few more properties lying abandoned, but having good potential. The auction will go ahead if the general body gives permission," he said.
NMC's Anand Talkies land measures 9,300 sq ft and is situated at a prime location, at the junction of Pandit Malviya Road and Humpyard Road at Sitabuldi. NMC is likely to keep the base price of the land with its structure at around Rs11 crore. The land's ready reckoner value is around Rs10 crore, and the structure's value is around Rs1 crore. The final sale price is expected to be far higher than the base price, considering the difference in ready reckoner and open market prices.
A senior official from NMC estate department said e-auction will be conducted for a period of one month, beginning from last week of November. "NMC will give lease of the land to the successful bidder. Lease holder will also have to pay 2% ground rent on total value of the land every year," he said.
A major advantage for the lease holder would be that the plot can get 4 floor space index (FSI) since Anand Talkies is situated in Metro Rail's transit oriented development (TOD) zone. The land is reserved for commercial purpose in city's development plan, which is another major advantage.
An NMC official added that the decision to auction Anand Talkies land was taken due to failure and lack of response to PPP and BoT projects. "NMC had planned to develop six shopping malls over a decade ago. Only one of the malls will be completed in the coming days. NMC will get revenue immediately from the auction, whereas it gets instalments in PPP or BoT projects," he said.
Fortunately, NMC had taken possession of Anand Talkies land five years ago. Despite NMC's irregularities in lease of land, the Supreme Court had literally gifted NMC the land. Since then, the land and structure were lying abandoned, and facing the threat of encroachments. Already, there are two houses constructed adjacent to the land that need to be verified. Vendors are also putting up stalls in the structure.
If the auction of Anand Talkies land succeeds, NMC is likely to auction the sprawling land in front of Vanamati on VIP Road and at KT Nagar. Lands with structures on them at these two locations have been lying abandoned for the last many years.
Additional municipal commissioner Ravindra Kumbhare told TOI NMC will conduct e-auction to maintain transparency and healthy competition. "We will identify a few more properties lying abandoned, but having good potential. The auction will go ahead if the general body gives permission," he said.
NMC's Anand Talkies land measures 9,300 sq ft and is situated at a prime location, at the junction of Pandit Malviya Road and Humpyard Road at Sitabuldi. NMC is likely to keep the base price of the land with its structure at around Rs11 crore. The land's ready reckoner value is around Rs10 crore, and the structure's value is around Rs1 crore. The final sale price is expected to be far higher than the base price, considering the difference in ready reckoner and open market prices.
A senior official from NMC estate department said e-auction will be conducted for a period of one month, beginning from last week of November. "NMC will give lease of the land to the successful bidder. Lease holder will also have to pay 2% ground rent on total value of the land every year," he said.
A major advantage for the lease holder would be that the plot can get 4 floor space index (FSI) since Anand Talkies is situated in Metro Rail's transit oriented development (TOD) zone. The land is reserved for commercial purpose in city's development plan, which is another major advantage.
An NMC official added that the decision to auction Anand Talkies land was taken due to failure and lack of response to PPP and BoT projects. "NMC had planned to develop six shopping malls over a decade ago. Only one of the malls will be completed in the coming days. NMC will get revenue immediately from the auction, whereas it gets instalments in PPP or BoT projects," he said.
Fortunately, NMC had taken possession of Anand Talkies land five years ago. Despite NMC's irregularities in lease of land, the Supreme Court had literally gifted NMC the land. Since then, the land and structure were lying abandoned, and facing the threat of encroachments. Already, there are two houses constructed adjacent to the land that need to be verified. Vendors are also putting up stalls in the structure.
If the auction of Anand Talkies land succeeds, NMC is likely to auction the sprawling land in front of Vanamati on VIP Road and at KT Nagar. Lands with structures on them at these two locations have been lying abandoned for the last many years.
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