Hinjewadi-Shivajinagar Metro: State to give 13.83 acres in Balewadi to top bidder as viability gap funding
Land will be given on lease for 35 years under a viability gap funding scheme. The firm can use it for commercial purposespune Updated: Aug 01, 2018 15:50 IST
The state government has decided to give 13.83 acres (5.60 hectare) of land in the heart of city, at Balewadi, as a land bank for developing the Hinjewadi to Shivajinagar Metro corridor on a public private partnership (PPP) basis.
The decision was taken during the state cabinet meeting on Tuesday, where it was decided to give 13.83 acres government land to the operator who will win the bid.
Kiran Gitte, cheif executive officer of Pune metropolitan region development authority (PMRDA), said, “The land will work as a viability gap funding, and will be handed over to the bidder for commercial development. The bidder will then have the authority to use the land for any commercial purpose.”
Gitte said that bidder will develop the plot proportional to the Metro work progress. When 25 per cent of the Metro work is completed, the operator will be able to utilise only 25 per cent of the total land for construction.He even said that after the completion of the long-lease contract , the ownership of the plot will remain with PMRDA.
Gitte said, “It’s good that the state government has taken the decision. It will help expedite the tender process. The state and central governments are not providing any fund for executing the Shivajinagar to Hinjewadi Metro corridor. The entire project is going to be executed on a public private partnership. Instead of giving any subsidy or grants, PMRDA will give the land bank to the operator. The operator can then develop the land and use the funds for the construction of Metro corridors and operations.
Gitte added that the tendering process is expected to be finalised before August 15. The Metro corridor work will be implemented in a different manner than that of Maharashtra metro rail corporation limited’s (Maha-Metro) two corridors. There will be no multiple tenders for every work, and the only tender will include all works.
First Published: Aug 01, 2018 15:36 IST