+
Karnataka transport department to lease out 190 properties
Real Estate

Karnataka transport department to lease out 190 properties

With revenues taking a hit due to the pandemic, Karnataka’s transport department is exploring its options, including the leasing out of land at 190 locations across the state. Land parcels up to 640 acre is to be utilised for the construction of commercial complexes.

The method: Officials from the transportation department stated that these properties will be leased out on a 30-year plan to the selected construction company. After the completion of the lease, the government will then take over charge of the properties. To avoid confusion, the companies will bid for one tender. The government will then choose the company that is willing to pay the highest amount to lease the land and also construct the building. After this, the transport department will then involve the Infrastructure Development Corporation of Karnataka (iDeCK), which will then provide a fully comprehensive study and also evaluate the construction.

The Principal Secretary of the Transport Department, Anjum Parvez, explained that the department had made the decision to use the public-private partnership (PPP) for the progression of these lands. This was only after checking the possible mechanisms that the department had at their disposal. The government will own these lands, whereas, the construction work will be done by private players.

Revenue expectation: The government will be expecting a sizable revenue share as the evaluation for a total of 630 acres of land is expected to fall anywhere between Rs 800 crore and Rs 1,000 crore. The finance department will be assessing public-private partnership (PPP) model proposals. Transport corporations in the state, the North-East Karnataka Road Transport Corporation (NEKRTC), Bangalore Metropolitan Transport Corporation (BMTC), North-West Karnataka Road Transport Corporation (NWKRTC), and the Karnataka State Road Transport Corporation (KSRTC) have not been able to generate the expected revenues. Since they stopped or minimised service after the pandemic broke out earlier this year, the situation became worse.

Many of the prime properties across the state have been used as centres of management for transit and traffic purposes. However, as they had not been utilised properly, the state government is planning to focus on only constructing commercial buildings near the bus terminals that are already in existence.

As the pandemic continues to affect the state, there is the belief that this initiative taken by the transport department will help increase the amount of revenue that has been depleted. The commercial properties that will be constructed will be able to bring in a huge share of the revenue, which will, in turn, help the department.

At present, out of all the locations, 20 are in Bengaluru and they include Shanthinagar, Kempegowda (in Majestic), Peenya and Magadi bus stations. While 30 to 40 of the locations are vacant, some of these plots already have structures like broken-down bus stations that need to be torn down.

With revenues taking a hit due to the pandemic, Karnataka’s transport department is exploring its options, including the leasing out of land at 190 locations across the state. Land parcels up to 640 acre is to be utilised for the construction of commercial complexes. The method: Officials from the transportation department stated that these properties will be leased out on a 30-year plan to the selected construction company. After the completion of the lease, the government will then take over charge of the properties. To avoid confusion, the companies will bid for one tender. The government will then choose the company that is willing to pay the highest amount to lease the land and also construct the building. After this, the transport department will then involve the Infrastructure Development Corporation of Karnataka (iDeCK), which will then provide a fully comprehensive study and also evaluate the construction. The Principal Secretary of the Transport Department, Anjum Parvez, explained that the department had made the decision to use the public-private partnership (PPP) for the progression of these lands. This was only after checking the possible mechanisms that the department had at their disposal. The government will own these lands, whereas, the construction work will be done by private players. Revenue expectation: The government will be expecting a sizable revenue share as the evaluation for a total of 630 acres of land is expected to fall anywhere between Rs 800 crore and Rs 1,000 crore. The finance department will be assessing public-private partnership (PPP) model proposals. Transport corporations in the state, the North-East Karnataka Road Transport Corporation (NEKRTC), Bangalore Metropolitan Transport Corporation (BMTC), North-West Karnataka Road Transport Corporation (NWKRTC), and the Karnataka State Road Transport Corporation (KSRTC) have not been able to generate the expected revenues. Since they stopped or minimised service after the pandemic broke out earlier this year, the situation became worse. Many of the prime properties across the state have been used as centres of management for transit and traffic purposes. However, as they had not been utilised properly, the state government is planning to focus on only constructing commercial buildings near the bus terminals that are already in existence. As the pandemic continues to affect the state, there is the belief that this initiative taken by the transport department will help increase the amount of revenue that has been depleted. The commercial properties that will be constructed will be able to bring in a huge share of the revenue, which will, in turn, help the department. At present, out of all the locations, 20 are in Bengaluru and they include Shanthinagar, Kempegowda (in Majestic), Peenya and Magadi bus stations. While 30 to 40 of the locations are vacant, some of these plots already have structures like broken-down bus stations that need to be torn down.

Next Story
Infrastructure Energy

WattPower, First Solar Host Solar Connect to Boost Agri-Solar in Telangana

WattPower, a renewable energy solutions provider, in collaboration with First Solar, hosted a high-level industry roundtable titled ‘Solar Connect’ at Vivanta, Hyderabad. The event focused on advancing agri-solar deployment in Telangana under the PM-KUSUM scheme. The session brought together policymakers, clean energy experts, and project stakeholders to address the core challenges in scaling agri-solar infrastructure. The agenda included technical presentations by both companies and a panel discussion moderated by Pavit Gandhi, Director, Sales, WattPower. The panel, titled “Un..

Next Story
Infrastructure Urban

PM Modi to Launch Rs 12 Billion Projects in Bihar, Rs 5 Billion in West Bengal

Prime Minister Narendra Modi will visit Bihar and West Bengal on Friday to launch a series of development projects worth over Rs 17 billion, aimed at strengthening infrastructure, connectivity, and socio-economic growth in the two states.Projects in BiharIn Bihar, the Prime Minister will lay foundation stones, inaugurate, and dedicate projects spanning rail, road, rural development, fisheries, electronics, and information technology sectors.He will inaugurate multiple rail projects, including the automatic signalling system on the Samastipur-Bachhwara rail line for improved train operations. T..

Next Story
Infrastructure Transport

IRCON Secures Rs 1.87 Billion in Major Mumbai Metro and Rail Contracts

State-owned engineering firm IRCON International Limited announced on Friday, 18 July, that it has secured three major infrastructure contracts worth over Rs 1.87 billion. The awards include two contracts for Mumbai Metro projects from the Mumbai Metropolitan Region Development Authority (MMRDA) and one railway project in Madhya Pradesh from Rail Vikas Nigam Limited (RVNL).IRCON received a Letter of Award from RVNL for a railway infrastructure project valued at Rs 756 million (inclusive of GST) in Madhya Pradesh. The contract was awarded to the IRCON–JPWIPL joint venture, where IRCON holds a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?