Infrastructure
Bengaluru: BDA To Mortgage Real Estate For Rs 1,000 Crore Loan, First Time Ever By Town Planning Agency
The Bengaluru skyline. (Wikipedia)
For the first time in its history, the Bangalore Development Authority (BDA), responsible for town planning in the city, is contemplating leveraging its real estate assets to secure bank loans.
The decision comes in the wake of losses incurred due to delays in allotting sites in Shivaram Karanth Layout, prompting the agency to explore innovative funding solutions.
BDA Commissioner N Jayaram confirmed the agency's intention to raise a loan of Rs 1,000 crore to address financial shortfalls in completing the Shivaram Karanth Layout project. With a substantial investment already made in the layout, additional funds are required to ensure its timely completion, reports Deccan Herald.
The BDA is banking on its proposal to mortgage corner sites of developed residential estates, as outlined in its affidavit submitted to the Supreme Court.
The BDA's decision to pursue bank loans hinges on the resolution of legal proceedings and the ability to expedite site allotments during the model code of conduct.
Delays in court proceedings and sluggish sales of ready-to-occupy flats have exacerbated revenue challenges, necessitating urgent financial intervention. The agency expects a substantial revenue infusion of Rs 7,000 crore from the allotment of sites in the Shivaram Karanth Layout.
While the BDA has initiated discussions with the Bank of Baroda, concerns have been raised regarding the transparency and adherence to standard procedures in securing the loan.
Critics suggest that the agency should follow the standard process of floating tenders to solicit quotations from multiple banks, ensuring competitive interest rates and optimal terms.
As the BDA navigates financial constraints and seeks to expedite critical infrastructure projects, its decision to mortgage corner sites for a bank loan reflects a pragmatic approach to address funding gaps.
However, ensuring transparency and adherence to procedural norms will be crucial in garnering public trust and maximising the benefits of this novel financial strategy.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
