Work on building high rises and commercial complexes on the plot, the first such large-scale re-development of a residential colony in Delhi in recent years, has started in full swing and is expected to be completed in four years at a cost of R4,000 crore.
The reason why we did not offer private players for the lease sale is because the Cabinet said it would only be reserved for ministries and PSUs. Moreover, as its lease sale, response from the private sector would not have been very good, a senior NBCC official told FE.
Around 4,700 new houses in high-rise buildings (76 towers) in place of the existing 2,200 houses would be built on the plot.
As much as 10% of the total residential area would be available for lease sale to PSUs, while the rest would go to the government housing pool quota.
Around one million sq ft of office space and about 470 homes would be leased to state-run firms, government departments, committees, tribunals and other authorities for 30 years.
The money from that would be used for building the accommodation and facilities for senior officials of ministries. The entire construction cost of the project would be covered through that. We will be charging market rate from the government departments, the NBCC official added.
Earlier, too, the NBCC had sold a three-acre plot in the Diplomatic Enclave of Chanakyapuri to the Leela Group for R700 crore in 2007 and used the money to construct around 500 flats in New Moti Bagh.
In more such initiatives, the government has planned another such complex in Ghitorni, in south-west Delhi on a 280-acre plot, which would be a residential and commercial hub with adequate green spaces.
The NBCC also has a contract to re-develop old government colonies such as Netaji Nagar, Kasturba Nagar near South Extension and Tyagraj Nagar, which would be developed on similar lines. These projects are still being worked out and it will take some time before work starts, the NBCC official added.
Re-development plans for Sarojini Nagar, Srinivaspuri and Mohammedpur are being chalked out by the Central Public Works Department and are expected to take around six years to complete.
Delhi has around 30 such colonies that occupy around 1,100 hectares of prime real estate.