Nagpur: MahaMetro will not only change the way Nagpurians commute but will also alter the real estate scenario of the city in coming years in a big way. It has already planned 13 real estate projects of which six have already been sanctioned. In addition, it will construct an international standard amusement park on Krazy Castle land.
These projects are spread all around the city. It will take some years before all of them are completed. MahaMetro is banking on easy accessibility of these projects for response from potential customers.
MahaMetro will build two tallest buildings in the city — 25-storey towers — opposite Yeshwant Stadium in Dhantoli and Kasturchand Park. It will also build a 20-storey building at Zero Mile. In addition, there are several big commercial projects in offing for the city. Combined together the 11 projects are the biggest real estate project in the city whose cost runs into thousands of crores. MahaMetro property development officials are however, yet to calculate the cost of the projects.
According to managing director Brijesh Dixit, six commercial projects have already been sanctioned by MahaMetro. “One is the traffic and transit management centre (TTMC) opposite Yeshwant Stadium. It will have a 25-storeyed tower and two 19-storeyed towers. It will be connected to Sitabuldi interchange station by an elevated skywalk. Tender for this project has already been floated. Five major players — Inorbit, Prozone, Phoenix, WTC and Zender have already sent enquiries. The pre-bid meeting will be held on April 10,” he said.
The tender for a 7-storey commercial complex at Khapri station has already been floated but is stuck up due to a minor court case. The tenders for a 25-storey tower at Kasturchand Park, 8-storey commercial complex at Prajapati Nagar station and 20-storey tower at Zero Mile will be floated this year. National Highways Authority of India (NHAI) and Jawaharlal Nehru Port Trust (JNPT) have booked three floors above airport station and all the seven floors in the station annexe.
There are two residential projects in the pipeline. They are townships at Hingna Mount View and Mihan Metro City stations. The former is spread over an area of 15 acre. Due to height restrictions imposed by Airports Authority of India (AAI), it will have 1,200 flats and bungalows having area between 600 and 1,200 square feet. Mihan Metro City will have 2,500 tenements in the same range. Reliance Retail has already expressed desire to start a big outlet in this township.
Five more commercial projects are in the offing. They are located at Cotton Market, Santra Market, Gaddigodam, Jai Prakash Nagar and Neeri. MahaMetro has sought land from various agencies but is yet to get it.
Commenting on mode of execution of these projects, Dixit said, “These projects will be built on public private partnership (PPP) basis. The operator will have to build according to our design. He will give us upfront premium and then there will be a moratorium of three years for big projects and of two years for small ones for payment of royalty. The operator is free to complete the project stage wise as per market demand but he will have to pay us the royalty after the moratorium period is over.”
Dixit further said that Nagpur Metro project was not dependent on royalty from real estate projects. “Half the cost is being borne by state and central governments and local bodies. The royalty will only help us in paying off foreign loans. However, this is the first Metro project in India that is creating so much real estate. It is known as land value capture (LVC),” he added.
The transit oriented development (TOD) policy of the state government permitting extra construction on both sides of Metro corridor up to a distance of 500 metres will also fetch extra revenue for MahaMetro and change the realty scene of the city.
MahaMetro had organized an investors’ conference last year to apprise real estate players about its plans. It had received good response with several major players sending their representatives. Later several doctors expressed desire to shift their hospitals to Metro buildings because of easy accessibility.
INFOGX
SANCTIONED PROJECTS
TTMC (opp Yeshwant Stadium) | 25 storey tower, two 19 storey towers, 8.5 lakh sq ft
Khapri Metro station | 7 storied building, 17,000 sq ft
Airport Station | 3 storeys above station, 7 storied annexe, 1 lakh sq ft
Kasturchand Park station | 25 storey tower, 3 lakh sq ft
Prajapati Nagar station | 8 storied building, 60,000 sq ft
Zero Mile station | 20 storied tower, 5.5 lakh sq ft
RESIDENTIAL PROJECTS
Hingna Mount View | 1,200 flats and bungalows having area between 600 and 1,200 sq ft
Mihan Metro City | 2,500 flats and bungalows having area between 600 and 1,200 sq ft
COMMERCIAL PROJECTS IN PIPELINE
Cotton Market station
Gaddigodam station
Santra Market
Jai Prakash Nagar station
Neeri
Krazy Castle
OTHER ASPECTS
Mode of execution | PPP, operator to pay royalty to Metro
Mode of selection of operator | Open tender
Moratorium for royalty payment | 2 to 3 years
Deadline for completion | Operator to decide based on market conditions
