KALABURAGI: The State government has decided to support urban local bodies in the State to unlock the value of significant real estates owned by them and develop models on sound commercial basis to develop the land to improve the infrastructure and quality of public life.
Official sources said that the commercial exploitation of the real estate of significant value in the urban local bodies would be done through the Karnataka Water and Sanitation Pooled Fund Trust and funded by the Karnataka Urban Infrastructure Development Finance Corporation.
Sources said that the projects identified, based on their commercial potential, were in the nature of new commercial complexes, relocating existing markets, traffic and parking terminals.
The trust had entered into a Memorandum of Understanding with two financial consultants and transaction advisors M/x Feedback Infrastructures Services Private Ltd. and M/s CRISIL for exploring commercial exploitation of the real estate owned by the select urban local bodies.
The two financial consultants and transaction advisors would be providing end-to-end counselling in conception, structuring, implementation and completion of the projects.
Initially in about 11 selected bodies, the exploration activity was taken up by the consultants and pre-feasibility reports were submitted to the government by these consultants.
Sources said that about five projects in three bodies of Chintamani, Chikkamagaluru and Moodabidri were found prima facie viable to be taken up under the private public partnership mode. The government has taken a decision to take up these five projects.
Originally it was proposed to finance these projects by borrowing from banks and financial institutions, but to reduce the borrowing cost of these projects the government decided to step in with the funding from the Urban Infrastructure Development Fund.