These are arguably the most dynamic times in the life of Delhi Development Authority. As the Commonwealth Games loom on the horizon, the authority aims to garner over Rs 2,000 crore this financial year through sale of land. In 2005-06, it raised Rs 1,020 crore (Rs 10.2 billion).
DDA vice-chairman delineates his moves in a chat with
Business Standard.
What is keeping you busy these days?We are constructing a Commonwealth Games Village, which would cater to 7,500 to 8,000 athletes and officials. Unlike the Asiad village, our model this time is going to be unique, one that will allow us to re-hire the Village in case of sporting events in the future.
The Asiad village is now inhabited by permanent settlers. The Village will come up over 60 hectares, adjoining Akshardham Temple and cost nearly Rs 1,100 crore (Rs 11 billion).
What will be the model for building the Village?This is envisaged as a public-private partnership model. We have asked the government for roughly Rs 490 crore (Rs 4.9 billion) and the rest will come from 6 to 8 hotel sites that we will be selling in the village.
Tenders will be floated and private players in the hospitality sectors will be participating in the process. If we don't get good bids, we can even look at a service and studio apartments.
The key condition will be that the government should be able to re-hire the hotels so that if we host the Olympics, only some additionalconstruction will be required. We are seeking opinion from financial as well as design consultants.
DDA has raised big money through auctions. What will you do with it?We raised Rs 1,020 crore (Rs 10.2 billion) from land disposal in 2005-06 and the target for 2006-7 is Rs 1,260 crore (Rs 12.6 billion). But we will raise more than Rs 2,000 crore (Rs 20 billion)
in the current financial year.
As many as nine hotel plots are slotted for auction next month. Then there are 8 to 10 nursing schools and colleges sites that would be sold too.
DDA spent Rs 990 crore (Rs 9.9 billion) in 2005-06 on acquiring land and will be spending about Rs 930 crore (Rs 9.3 billion) this year. We are also focusing on development of Rohini, Dwarka, Narela to emerge as mega sub-cities.
Has Board of Control for Cricket in India approached you for land to build a stadium?They did approach DDA and wanted 31 acres of land. We have asked them to furnish the details of their 'society status', as well as other specifics. The project has to be sponsored by either a state or the Central government.
What would be the cost of the stadium land? Although the rate has not been decided yet, it could be around Rs 120 (Rs 1.2 billion) to Rs 150 crore (Rs 1.5 billion).
What are the challenges that DDA is facing?The challenge is to provide reasonable houses to the people at a time when real estate prices are shooting up. Then, there is a need to develop the NCR, along with a good transport system.
There is only so much that a city's urban infrastructure can take. The development of satellite towns is therefore crucial. Lastly, there is a need for greater transparency and discipline within the sector.
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