New Delhi: To generate funds for the redevelopment of seven residential communities, the Centre plans to monetize its prime real estate asset in the Centre of Delhi. It is considering selling 60 acres of land and also constructing properties in Sarojini Nagar as part of this plan.
It is also considering selling 60 acres of land or constructing properties in Sarojini Nagar as part of its plan.
The original plan was only to sell built-up properties.
However, consultations with real estate professionals are planned to determine the best solution.
We are open to considering both options. An officer told TOI they would decide which option would bring them more funds.
He also said that four to five parcels had been identified.
This model is very similar to that used to redevelop New Moti Bagh a decade ago when a plot of land was purchased for a hotel complex. It included bungalows and apartments for senior officers.
NBCC also sold office space in East Kidwai Nagar to the public sector and government agencies. The same model is being used for Nauroji Nagar on Ring Road.
Six years ago, the cabinet approved the redevelopments of Sarojini Nagar and Netaji Nagar, Nauroji Nagar, Kasturba Nagar, Thyagraj Nagar, Srinivaspuri, Mohammadpur at an estimated cost Rs 32,835 Crore. The projects were to be completed in phases by 2021.
However, many issues and court cases have prevented them from being completed. The new proposal would see the total number of dwelling units for employees at Class-IV and secretary levels ranging from Type II to Type VII increase to around 20,000.
Government proposes raising additional funds
The government proposes raising additional funds to cover the cost overrun and expand its scope of work. The government plans to build an elevated corridor between East Kidwai Nagar and IGI Airport to meet future traffic demand.
The project is estimated to cost approximately Rs 5,000 crore. The housing ministry, urban affairs, and others have been compelled to seek ways to increase resources. One example is the sale of Sarojini Nagar real estate.
NBCC will be tearing down two-story government buildings spread across 258 acres. They were built in 1955 and used to create modern housing and commercial space. This “self-financing” scheme was expected to produce 25,667 dwelling units.
Delhi: Up to 60 acres of prime property
These have been delayed due to various issues, including court cases.
Although the NBCC plans to sell the commercial space at World Trade Centre in Nauroji Nagar and aims to generate Rs 12,000 crore, it won’t be sufficient to finance the redevelopment projects.
Sources say there is an offer to sell plots.
Officials stated that while selling land, the government should remember the Noida and Greater Noida experiences where private parties delayed paying the amount to development authorities.