Latest news with #Rs235
Time of India
15-07-2025
- Business
- Time of India
City set to get tallest comm complex with Rs235cr Cotton Market redevpt
1 2 Nagpur: The city is set to get its tallest commercial complex yet — towering at 102.9 metres — after municipal commissioner Abhijeet Chaudhari on Monday gave nod to Maharashtra State Infrastructure Development Corporation (MSIDC) for the ambitious Rs235 crore base value redevelopment of Cotton Market. The project is part of Nagpur Municipal Corporation's (NMC) vision for sustainable and holistic urban renewal. "The project will be implemented under the design, build, operate and finance model," said an official privy to the development. Spread over 8,070sqm, the upcoming integrated commercial complex will offer a built-up area of 60,947sqm, transforming the decades-old market which is currently in a bad shape into a modern multi-use vertical hub. The project received planning approval and alignment clearance through letters issued on June 6, 2025. The new structure will feature two towers: one for offices and another for a hotel with service apartments from the 5th to 24th floor. The lower levels are designed to accommodate a variety of public and commercial uses — retail shops, restaurants, cafes, cinema halls, a health club, library, kids' play area, and a function hall. The project also includes a lower ground floor with 28 rehabilitation shops and space for Ganesh Mandal exhibitions. For mobility, provision has been made for parking 319 cars and 658 two-wheelers, with a road width of 24 metres aiding access. While open space is included in the master plan, it will not be part of Phase 1. The redevelopment will also cater to existing stakeholders. A total of 28 shops have been considered for rehabilitation, including both authorised and encroached units. A 1,520sqm on the lower ground floor will be dedicated for this purpose, at a rehabilitation cost of Rs6.57 crore. The civil construction cost is estimated at Rs291.94 crore (excluding GST), with the overall cost per sqm pegged at Rs46,537. Based on ready reckoner land rates, land cost is valued at Rs 46.63 crore. The minimum revenue expected by NMC from the project is Rs235.62 crore, payable over five years in six instalments. Including development charges and interest, the receivable rises to Rs258.60 crore. The project's internal rate of return (IRR) is calculated at 17.56%, with a weighted average cost of capital (WACC) of 13%. The development is planned over a five-year period, with a total sales and revenue realisation cycle spanning seven years. An upfront premium of Rs15.54 crore will also be paid to NMC, with revenue sharing applicable during the initial five years. The Cotton Market redevelopment is poised to redefine Nagpur's commercial skyline, marking a key milestone in the city's transition toward planned vertical infrastructure and integrated urban spaces. Along with this, the MSIDC is also developing five more commercial complexes for the NMC, and they include DIK Hospital, Netaji Market, Dahi Bazaar, Itwari Market, and Santra Market. Box Nagpur's skyline widening: Tallest tower to feature retail, offices, hotel & modern amenities with rehab for local stakeholders Tallest commercial complex: The project will rise to 102.9 metres, making it Nagpur's tallest commercial complex, with two towers — one for offices and another for a hotel with service apartments from the 5th to 24th floor Parking capacity: The design includes parking for 319 cars and 658 two-wheelers, with a 24-metre-wide access road to facilitate vehicular movement Modern amenities: The complex will host a variety of amenities including retail shops, restaurants, cafes, cinema halls, a health club, library, kids' play area, and a function hall Rehabilitation provision: A 1,520 sq mtr lower ground floor area has been earmarked for 28 rehabilitation shops, including both authorized and encroached units, with a rehabilitation cost of Rs6.57 crore Financials & development model: The project will follow the design, build, operate, and finance (DBOF) model, with a minimum NMC revenue of Rs235.62 crore, and internal rate of return (IRR) of 17.56% over a five-year construction and seven-year revenue realization cycle
Express Tribune
27-06-2025
- Business
- Express Tribune
Govt plans new housing scheme
Listen to article With Pakistan's mortgage-to-GDP ratio abysmally low — below 1% — owing to the absence of a proper mortgage system, the federal government intends to launch a new subsidised housing finance scheme in the upcoming fiscal year. The initiative aims to spur demand in the real estate and construction sectors while making homeownership more accessible to middle- and lower-income groups. However, the scheme, loosely modelled after the earlier Mera Pakistan Mera Ghar programme, may face significant challenges, including a lack of clarity on eligibility and structure, persistently high land and construction costs, and limited affordability among target beneficiaries. Despite a Rs5 billion subsidy proposed in the 2025-26 federal budget, concerns remain over banks' willingness to lend aggressively, given Pakistan's mortgage-to-GDP ratio is still languishing below 1%. Experts caution that unless the scheme is backed by strong institutional coordination, tax reforms, and public awareness, it may fall short of its objectives — much like the previous attempt, where only Rs235 billion was approved out of Rs514 billion in financing requests. The State Bank of Pakistan (SBP) will oversee the rollout of the new scheme. While the proposed housing finance will subsidise a portion of the markup rate to make it affordable for beneficiaries, the eligibility criteria, categories, name, and structure may differ from the previous initiative. Ibrahim Amin, a real estate valuation and engineering expert, noted that the government is considering the launch of the housing finance scheme due to favourable conditions following a gradual reduction in the policy rate, which may decline further in the coming months if macroeconomic indicators improve. "The housing finance scheme will help revitalise economic activities in real estate, construction, and allied sectors, attracting local and foreign investments from residents and overseas Pakistanis while generating jobs across the entire ecosystem," said Amin, who is also the CEO of TriStar International, a real estate valuation company. He added that the scheme could improve sales of hundreds of unsold or undersold housing units in private residential societies across major cities, which have struggled due to rising inflation and declining purchasing power among target buyers. The government has also announced tax relief on property transactions, which may further stimulate the market in the coming months, Amin noted. The previous subsidised housing finance scheme, introduced in 2019 by the central bank, was discontinued by mid-2022 due to high interest rates. Despite overwhelming public responsewith participating banks receiving financing requests worth Rs514 billiononly Rs235 billion was approved across thousands of applications. "The banking regulator, alongside commercial banks, played a crucial role in facilitating the public through awareness campaigns, dedicated facilitation desks, and revised scheme conditions," Amin said. "The initiative also boosted economic activity in real estate and construction while providing long-term consumer financing opportunities for banks." He emphasised that Pakistan's banking system now has a well-tested and researched framework for housing finance, with stakeholders fully prepared to execute their roles. "It is high time for the government to announce the policy to benefit the masses," he remarked. Pakistan currently faces an estimated shortage of 1.2 million housing units relative to its population, while its mortgage-to-GDP ratio remains below 1%the lowest in the region. "Reviving affordable housing finance could play a crucial role in addressing both housing needs and broader economic recovery," said Karachi-based realtor Maaz Liaquat. He pointed out that high land and construction costs have dampened bookings for small and mid-sized apartments in major cities in recent years. The new subsidised financing scheme could support builders and developers of ready and under-construction vertical housing projects, attracting overseas Pakistanis and middle-income buyers. Liaquat suggested that the government collaborate with district authorities to streamline real estate regulations while reducing the tax burden on scheme beneficiaries to make homeownership more affordable for first-time buyers.
Time of India
24-05-2025
- Business
- Time of India
Gudadhe questions NMC land deals on Orange City Street
Nagpur: Former Congress corporator and AICC secretary Prafulla Gudadhe has alleged that the Nagpur Municipal Corporation (NMC) handed over prime city land worth Rs582.53 crore to private builders, while managing to recover just Rs47.86 crore—a mere 8.21% of the declared value. Slamming the civic body for what he described as a "giveaway disguised as development," Gudadhe claimed that the entire deal is tilted in favour of developers, at the cost of public interest and livelihoods of thousands of local street vendors. Addressing the media on Saturday, Gudadhe presented a detailed dossier alleging gross irregularities in NMC's sale of six out of 21 plots originally transferred to the civic body by the state govt for development of a public-commercial corridor dubbed "London Street," (now Orange City Street). These 2.38 lakh sqm of plots—formerly defence land—were meant to serve the public by promoting mixed-use development, including provisions for street vendors and low-income entrepreneurs. Gudadhe claimed the NMC has betrayed its public mandate by gifting away these strategic plots to private builders under a deceptive Build-Operate-Transfer (BoT) model. "They boast of earning Rs561 crore, but that's staggered over 10 years. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 나이들어 노안+백내장 절대 방치 하지 마세요! 부산백내장노안 전문안과 더 알아보기 Undo On the ground, only Rs47.86 crore has entered the public treasury. This is not revenue generation—it's revenue illusion," he said. As per Gudadhe, documents show glaring disparities in declared sale values and actual receipts. "One 12,500 sq.m. plot (Plot No. 3) was sold for Rs235 crore, yet NMC has only received Rs5 crore from the buyer. This pattern repeats across other plots, with developers benefiting from undervalued deals, deferred payments, and low upfront commitments, while gaining rights to develop high-end malls, showrooms, hotels, and corporate bazaars," he said. Gudadhe claimed the entire project is proceeding with no regard for the livelihoods of over 5,000 local street vendors who operate along the stretch. "In Jaitala Market, where over a thousand vendors earn daily wages, the NMC plans to build a mall, reserving only first floor for 202 vegetable stalls. This is tokenism. The rest will be swallowed by big brands," he said. Gudadhe claimed the move also violates Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, which mandates surveys, designated vending zones, and non-eviction until vendors are accommodated—a process NMC has allegedly bypassed. "Without a public body in place for over three years, these backdoor deals are being pushed by bureaucrats in collusion with top state political leaders. The result is privatization of public land without transparency, accountability, or democratic consultation," Gudadhe thundered. He has demanded immediate halting of all private development on the Orange City Street land, full disclosure of contract terms, and rehabilitation of all affected vendors. "If these deals go through, it will not just be land, but the trust of Nagpurians that the NMC has sold out," he concluded.
