Metro in PPP deal for Swastik station

Metro in PPP deal for Swastik station
BY R. JAYAPRAKASH
BENGALURU


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Bengaluru Metro Rail Corporation Ltd will enter its first ever joint venture with a private company, Mantri Developers, to develop a multi-crore commercial hub-cum-Metro station at Swastik near Majestic.
According to government sources, the deal is more or less through and it will create a win-win situation for both BMRCL and Mantri Developers.

“While BMRCL will benefit by way of putting up an impressive station at absolutely no cost and also earn revenue out of the commercial real estate development, Mantri will continue to have a hold on the prized mill land property which it had bought through auction and develop it into a bustling shopping and leisure extravaganza,” a source said.

“Since Namma Metro cuts through the Mantri property, shoppers will have direct access to reach the destination without any hassle,” the source added.

As part of the deal, BMRCL will acquire 5.2 acres of the 24 acres which Mantri owns.

The land will belong to BMRCL, but Mantri will spend Rs 30 crore to develop just the station and construct a commercial tower over the station. This will be a part of its mega plan of creating a commercial hub on 24 acres right in the heart of the city. Bengaluru Metro Rail Corporation, which will enter a joint venture with Mantri Developers to develop the Metro station at Swastik near Majestic, will lease the space above the station for 99 years after which the property developed over the 5 acre station will be transferred to BMRCL.

The station will be built by Mantris. The company can come up with its own design to suit its needs which will be approved by BMRCL or it could go in for design suggested by BMRCL.

The preliminary discussions are over and the Mantris have made a formal proposal. According to the plan, the 24 acre commercial hub will house a multiplex, shopping areas, office space, amusement and leisure areas and hotels. BMRCL will get 1 per cent of the revenue earned annually for 30 years; the percentage will increase to 5 after that, the sources said.

The Swastik station had remained a contentious issue as the developer was not willing to give away prime land easily. In 2007, the BMRCL notified the land for acquisition and since then the Mantris could not develop the land. The developer had put across the price of land for acquisition at Rs 450 crore but BMRCL’s Thomas Committee suggested a compensation of just Rs 28 crore. This being the case, both had locked horns over the land. However, last month, the developer approached the BMRCL to work out a middle path and the proposal worked for the Mantris as well for BMRCL.

The move has saved hardship for both the entities as Mantris was all set to go to court opposing the land acquisition which would have further delayed the project.

When contacted, BMRCL MD N. Sivasailam confirmed that there was such a move. “Mantri Developers has made a formal proposal and it looks like a preposition. However, the matter will be presented in the next board meeting and a decision on this will be taken by the board members,” he said.