VIJAYAWADA: Even after Chief Minister N Chandrababu Naidu has given in-principal nod for the establishment of ‘Hardware’ bazar at NTR Complex in the city, the exorbitant rents have been forcing the Vijayawada IT Association (VIJITA) members to rethink about the proposal. Over the years, the NTR Complex has been serving as one-stop centre, where public from the city and neighbouring districts can find expensive and at the same time cheaper electronics, mobiles and computers. A team of representatives from VIJITA met Naidu and expressed their willingness to develop a Hardware Bazar on the second floor of the NTR Complex. The second floor has 180 shops, where as 115 shops are already functioning on the first floor.
In March 2017, Naidu has announced to transform the existing complex as next IT Hardware Bazar for the State with an investment of `200 crore. With this, several traders who were depended on hardware business pinned hopes for a better future in the city, which is developing on par with State capital Amaravati. A representation was submitted to earlier Municipal Commissioner G Veerapandian seeking allocation of shops for the traders in open auction procedure.
The civic body which had already called for tenders to allocate the shops had cancelled the procedure after the direction from the CM to transform the complex into a Hardware Bazar. As per the notification given by the VMC in December 2016, the rent slab for shop with 144 sq.ft fixed at `12,000 per month, while 212 sq.ft shop it is `17,702 and 236 sq.ft it is `19,706. However, the estate department officials of VMC issued a notification in 2017 and poured water on their hopes, by increasing the rent slab of the complex by 45 percent and fixed minimum rents for various shops. With the new rent slab proposed by the VMC, the rent for shops is fixed at `10,260 (114 sq.ft), `16,200 (180 sq.ft) and `19,260 (214 sq.ft).
‘’The estate department of VMC has increased the rent slab exorbitantly. We have also proposed to invest `50 lakh to improve the basic amenities in the complex such as elevator, toilets and a staircase. Around 2,000 people across the State will get employment opportunities if the complex was developed into a Hardware Bazar,’’ said a member of VIJITA. The civic body should rethink about decreasing the rental slab for the benefit of hardware traders, he added.
Speaking to Express, VMC Estate Officer Ch Krishna Murthy said the rental issue was discussed with civic chief J Nivas. On an average, each shop will get a goodwill of `5 lakh and if open auction was conducted `10 lakh can expected from each shop. Already the existing shopkeepers in the complex are paying `20,000 per month. If the civic body reduces rents for the sake of hardware traders, it will have its effect on the revenue augmentation plans of VMC, he said.
Project fails to take off
n In March 2017, Naidu has announced to transform the existing complex as next IT Hardware Bazar for the State with an investment of R200 crore
n With this, several traders who were depended on hardware business pinned hopes for a better future in the city
n However, the estate department officials of VMC issued a notification in 2017 and poured water on their hopes, by increasing the rent slab of the complex by 45 percent and fixed minimum rents for various shops
