Cash-strapped Chandigarh MC eyes gains from residential project in Manimajra
The project is to come up on a 6.9-acre land parcel in Pocket 6 of Manimajra, which has been earmarked for residential development under the Chandigarh Master Plan; the MC is considering auctioning the vacant land with a reserve price of ₹300 crore — expected to fetch at least ₹500 crore
Amid its mounting financial challenges, the Chandigarh municipal corporation (MC) is looking to generate revenue by developing a residential project in Manimajra’s Shivalik Enclave area, in partnership with the National Buildings Construction Corporation (NBCC).
The project is to come up on a 6.9-acre land parcel in Pocket 6 of Manimajra, which has been earmarked for residential development under the Chandigarh Master Plan. While the MC is considering auctioning the vacant land with a reserve price of ₹300 crore — expected to fetch at least ₹500 crore — officials say that partnering with NBCC on a revenue-sharing model could potentially double the civic body’s profit.
NBCC (India) Limited, a Navratna public sector enterprise under the Union ministry of housing and urban affairs, specialises in project management consultancy, engineering-procurement-construction (EPC), and real estate development. If roped in, NBCC will undertake the construction and development of the proposed society, in return for a share in revenue generated from the project.
The urban planning department of the Chandigarh administration has already given its nod to the layout and zoning plan for the housing project. The approved layout includes five residential pockets with buildings permitted to go up to five storeys, supported by a sanctioned floor area ratio (FAR) of 2. The plan also provides for amenities such as a shopping complex, green areas, a playground, and reserved land. Structures like a school and the Nirankari Bhawan will also be on the land. As part of preliminary preparations, the urban planning department has forwarded two copies of the approved layout plan to the MC.
MC commissioner Amit Kumar said, “We have written to deputy commissioner Nishant Yadav to seek clarity on the land’s ownership, including whether it is on a freehold or leasehold basis. Vacant land will be auctioned as per the new collector rates, with the reserve price pegged at ₹300 crore. At the same time, we are also in talks with the NBCC as we are exploring the option of a revenue-sharing model to boost our profits.”
Following multiple meetings with Punjab governor and UT administrator Gulab Chand Kataria, mayor Harpreet Kaur Babla is actively pursuing the sale of this land to refill MC’s fast depleting coffers.
This is not the first time that the MC is auctioning its land. In 2005, the corporation had sold a 5.39-acre plot in Manimajra for a similar housing society on freehold basis. The land was allotted to Delhi-based Uppal Housing for ₹108 crore, but the project soon got embroiled in controversy. Under the agreement, 15% of the housing units were to be allocated for the economically weaker sections (EWS), with a minimum area of 200 square feet per unit, which the developer failed to fulfil. In 2011, the MC issued a show-cause notice to the developer followed by a penalty of ₹1.5 crore. However, the project was stayed after residents moved court.
The second sale was for the Hotel JW Marriott project in Sector 35 at a cost of ₹101.37 crore on a leasehold basis in 2006.
