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DMRC may develop residential property

delhi Updated: Aug 03, 2012 02:51 IST
Subhendu Ray
Subhendu Ray
Hindustan Times
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The Delhi Metro is soon likely to diversify its operations and venture into the development of residential
properties in the Capital. The need for alternative modes of revenue generation has prompted Delhi Metro Rail Corporation (DMRC) to consider this move.

The corporation is now awaiting permission from the empowered group of ministers.

"Revenue generation through property development is one of our main challenges in phase 3. This will help us keep Metro fares reasonable for commuters,” said Anuj Dayal, spokesperson, DMRC.

Out of the total approved cost of Rs. 35,242 crore, the government has given the corporation the mandate to raise Rs. 1,600 crore from property development in phase 3.

The urban development ministry has fixed a tentative target of raising Rs. 10,000 crore from property development in phase 4, scheduled to be completed between 2016 and 2021.

"We had a tough time generating revenue of Rs. 700 crore in phase 1 and Rs. 950 crore in phase 2. Now, the target is huge and cannot be met unless we get into development of residential real estate properties,” said SD Sharma, director (business development), DMRC.

For additional revenue in the previous two phases, DMRC had created retail outlets at stations, an IT Park at the Shastri Park station compound and some shopping malls at Metro stations.

"We will prefer to develop residential plots along the proposed corridors, which will have a huge demand. We will try to do this under the proposed transit oriented development (TOD) project of the urban development ministry. But if adequate land is not available here, we will develop plots wherever land is available,” Sharma said, expressing hope that the requisite permission would be recieved within six months.

The basic principle of a transit oriented development project is mixed-land use.

This means there will be a mix of residential and commercial development and high density development, leading to multi-storeyed construction, said urban development ministry officials.