TN Govt chooses private players for slum rehabilitation project
CHENNAI: It has been decided by the Tamil Nadu Slum Clearance Board to induce a private player to construct a multi-storey building within the heart of Chennai city. This is a pilot project to be taken up in Tamil Nadu.
The department will provide 32.95 grounds (one ground is equal to 2,400 square feet) of land which is available with it at Nandanam, Anna Salai, for establishing the building. The project cost is expected to be around Rs 120 crore tentatively .
A period of 30 years would most likely be considered as the concession period. A two-stage competitive bidding process under the private-public-partnership (PPP) mode would be employed to select the potential concessionaire.
Since, it is a pilot effort, the department wants to make sure, that the initial overtures are not hampered or dampered. The department would proceed, with first understanding the perspectives and views of potential investors before it finalizes the bid documents. In order to achieve the same, potential investors would be invited to participate in an Expression of Interest.
In order to make the project alluring to the stakeholders, potential concessionaires would be provided with an opportunity to share their views on the possible model for the proposed development.
As per the department, the PPP approach would prove more probable to prove attractive, since the project is humongous in size and involves the creation of new infrastructure at huge investments. Tamil Nadu Urban Infrastructure Financial Services Ltd (TNUIFSL) was appointed as the transaction adviser by the department. The TNUIFSL is responsible for conceptualising the project and examining its techno-financial feasibility. According to the TNUIFSL, the project would allure private investments and is viable to be taken up in the PPP mode.
Utilizing an area of 6.78 grounds on stilts, the Board has constructed an office complex which is four floors above. The complex is currently being used by the Tamil Nadu Urban Finance & Infrastructure Development Corporation Ltd and the TN Power Finance.
However, the department has now proposed to construct a commercial-cum-office complex in the entire area of 32.95 grounds demolishing the existing building.
It is also proposed to utilize the available premium FSI along with the allowable FSI allowed as per CMDA norms under Second Master Plan considering the prevailing huge land cost in that area.
The concessionaire has to hand over 20.56 per cent of the area developed to the Board and shall generate revenue from the remaining area. The concessionaire has to demolish the existing building in the site, only after completing the entire construction and putting it to use.
The implementation of the project will result in improved price realization for the construction and will create direct and indirect employment opportunities.
