CHENNAI: The Tamil Nadu Slum Clearance Board has decided to rope in a private player to construct a multi-storey building in the heart of Chennai. This is the first such project to be taken up in Tamil Nadu.
The department will give 32.95 grounds (one ground is 2,400 sq ft) of land available with it on Anna Salai, Nandanam, for developing the building.
The tentative project cost is expected to be around Rs 120 crore.
The concession period is likely to be for 30 years. The potential concessionaire will be chosen through a two-stage competitive bidding process under the private-public-partnership (PPP) mode.
Being the first time, the department does not want to take any chances. It will first get views of the potential investors before finalising the bid documents by inviting them to participate in an Expression of Interest.
The potential concessionaires will get an opportunity to share their views on the possible model for the proposed development to make the project attractive to the stakeholders. The department said that the PPP approach is more likely to prove attractive as the project is of a reasonable size involving creation of new infrastructure at huge investments. It had appointed Tamil Nadu Urban Infrastructure Financial Services Ltd (TNUIFSL) as transaction adviser to conceptualise the project and examining its techno-financial feasibility. The TNUIFSL said that the project is viable to be taken up in the PPP mode and can attract private investments.
The Board has constructed an office complex utilising an area of 6.78 grounds on stilts with four floors above. It is presently used by the Tamil Nadu Urban Finance & Infrastructure Development Corporation Ltd and 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 utilise 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 realisation for the construction and will create direct and indirect employment opportunities.