Corpn cuts deposit for facilities to be leased out by half

Coimbatore: The city corporation has brought down the deposit amount for its facilities to be leased by half to encourage people to take part in the bidding process.
The decision, which was taken recently, was approved at the special council meeting that was held in the presence of corporation commissioner Raja Gopal Sunkara on October 28.
The corporation has 48 facilities - market areas, parking slots and paid toilets, among others – to lease out and they are its major revenue generators. These facilities are leased out once every three years. Upon successful bidding, the lessees have to pay the lease amount to the civic body. The amount would be increased by 5% every year.
With the previous three-year tenure ending, the corporation had thrice initiated steps to lease the facilities in the past three years. However, it could not complete the bidding process because of lack of interest among the bidders. “One of the reasons the bidders cited was the high deposit amount. Hence, we have brought it down,” an official told TOI.
As per the revised charges, the official said, the deposit amount for the air-conditioned waiting hall at Mettupalayam bus terminal would be Rs 2.5 lakh, against Rs 5 lakh earlier. “Similarly, the deposit amount for Singanallur weekly shanty has come down to Rs 1.37 lakh from Rs 2.75 lakh.”