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North MCD to build skyscraper to overcome financial crunch

North MCD to build skyscraper  to overcome financial crunch
In order to end financial woes, the North Delhi Municipal Corporation is going to build a skyscraper at Minto Road in Central Delhi. The Corporation is eying at a minimum Rs 5,000 crore by leasing or selling out space at the proposed property. Notably, the Corporation is reeling under a loan of Rs 2,600 crore.

The Corporation owes Rs 1,500 crore of Delhi government, Rs 750 crore of contractors and remaining money loan are money diverted from other heads and the amount withdrawn from provident fund head to pay salary of employees and the proposed move is seen as an attempt of the cash-strapped North MCD to fatten its empty coffers.
 
As per the report, the 1.35 hectare prime property is stone’s throw away from Connaught Place at Minto road, near the New Delhi railway and Metro stations opposite Dr Shyama Prasad Mookerjee Civic Centre, the headquarters of North MCD. A proposal to utilise the site for commercial usage has 
been approved recently by the Standing Committee of the North Corporation. 

A senior official said that as per initial plans, the Corporation would construct a high-rise commercial building similar to the Civic Centre.

To overcome the crisis, the civic agency has already leased out 40 per cent space of Civic Centre to the Income Tax department at Rs 1,800 crore for a period of 90 years. “The proposed high rise will be leased or sold out primarily to government departments or agencies instead of private players. This proposed building will be also rented for shorter duration to earn maximum rental revenue,” said an official.

Chairman, Standing Committee, North MCD, Pravesh Wahi said that the process for the commercial exploitation for the said plot will start soon. “Recently, the Standing Committee changed the land usage of the plot. A detail project report will be prepared for the proposed construction to earn maximum revenue in a transparent manner,” he said. Currently, the site is being used as staff quarters (single-storeyed) for Municipal employees. Before the starting of construction, the agency will accommodate Municipal staff to its other residential colonies. 
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