‘Rs 114 Crore New Central Market on 3.62 Acres Land will be completed in 3 Years’- MCC Commissioner

Spread the love

Rs 114 Crore New Central Market on 3.62 Acres Land will be completed in 3 Years- MCC Commissioner

Mangaluru: The 60-year-old Central Market was demolished, before which it was on hold due to a stay from the High Court, and now the work on the construction of a New State-of-the-Art CENTRAL MARKET BUILDING for Rs 114 crore has begun. Mangaluru City Corporation (MCC) which owns the property, the Mangaluru Smart City Limited (MSCL) will take up the Redevelopment of the Central Market and Fish Market project on a design, build, finance, operate and transfer (DBFOT) basis, under a Public-Private Partnership (PPP) model.

The new market will be constructed on 3.62 acres of land, under the PPP model, through Mangaluru Smart City Limited. The road in and around the Central Market has already been developed and the foundation will be laid shortly. As per the proposal, the new market will have five floors and parking space in the basement. The MSCL had prepared the detailed project report for the market at an estimated cost of Rs 114 crore. The proposal for the demolition and reconstruction of the new market has witnessed several ups and downs with the issue reaching Karnataka High Court in the year 2020. Following the spread of Covid-19, the district administration decided to close down the Central Market on April 7, 2020, to check the spread of the pandemic.

CENTRAL MARKET BEFORE……

CONSTRUCTION WORK HAS STARTED…..

All the traders were shifted to the APMC yard in Baikampady. Questioning the decision, the traders approached the High Court. The court, in turn, had directed the city corporation to withdraw its order of closure and restart the process of demolition and reconstruction afresh as per the law. The Dakshina Kannada deputy commissioner once again issued an order to close the market on August 18, 2020, to check the spread of Covid-19. When the traders approached the court again, the court directed the MCC to conduct a study on the fitness of the building through a third-party agency. Accordingly, a third-party agency appointed by the MCC in its report too had claimed that the building was not fit for renovation and had recommended demolition.

Though the proposal on demolishing the old building to pave way for the new building was mooted in 2008-09, the city corporation could not take it up due to a lack of funds. Later, the council of the MCC approved the proposal on June 29, 2020, approving the demolition of the decades-old Central fish and vegetable market. The MCC had demolished the 60-year-old Central Market building to facilitate the new building work in April this year after the High Court vacated the stay order. Though the proposal on demolishing the old building to pave way for the new building was mooted in 2008-09, the city corporation could not take it up due to a lack of funds. Later, the council of the MCC approved the proposal on June 29, 2016.

The proposed Central Market complex will have a separate space for the retail sale of vegetables, fruits, flowers, fish and meat. The complex will also have a separate space for commercial establishments and office premises as well. It may be recalled that the district administration had banned activities at the Central Market to maintain social distancing during the first wave of the pandemic in 2020. The Central Market before shifting to APMC Yard in Baikampady had 597 shops, operating wholesale and retail businesses. Anyways, a full-fledged market complex in the Central Market area has been a long pending demand of Mangaluru. And once completed the Mangaluru Central Market will be one of the UNIQUE & STATE ART Commercial/Market Building in the Country”.

In his communication with the media, Mangaluru City Corporation Commissioner Akshay Sridhar said, “The Tender and E-Auction for selecting a concessionaire for the project Redevelopment of Central Market & Fish Market on DBFOT basis under Public Private Partnership (PPP) Mode was published. The e-procurement tender had stages of The Pre- Qualification Bid stage, Technical Bid stage and financial bid. To arrive at the best rates further, an e-Auction based on the initial reserved price was kept from the highest quote arrived from the financial bid and only successful bidders participated in the e-auction. MSCL prepared a Concession Agreement (CA)”.

IF EVERYTHING GOES ON WELL, THE MARKET PLAN WILL LOOK AS SEEN BELOW

“Request for proposal (RFP), financial feasibility report and notified tender for an estimated cost of Rs 114 crore. The details are Site Area / Extent of plot 3.61 Acres = 14609.67 Sqm; Built Up Area including all services for Market portion to be handed over to City Corporation post construction 15,000 Sqm; Estimated Project Cost Rs. 114.04 Crores; Concession Period 30 years (including construction period of 3 years) further extendable to by another 30 years at the end of the first term on first right of refusal basis: Construction Period 3 years; Financial criteria for bid (Annual Concession Fees) Minimum financial offer of Rs. 70 lakhs per annum (increased 5% CAGR every year from 4th year till 30th year) to city corporation; Upfront Premium Total upfront premium of Rs. 1.5 Crores in 3 years @ 0.5 crores per year; Yearly Revenue sharing amount after tendering Rs. 3.07 Crores with an escalation of 5% CAGR; Performance Security during construction 5% of estimated project cost; Bank guarantee for Operations and Maintenance Security Rs. 1.5 Crore; Amount Quoted in financial BID H1 (Annual Concession Fees) Rs. 1.27 Cr and BID amount in E-auction for (Annual Concession Fees Rs. 3.07 Crore,” adds Akshay Sridhar.

It is learnt that Somayaji Estates was the lead bidder, which is Rs 3.5 crore a year.

ALSO READ RELATED ARTICLES:

Spread the love