Cash-starved BDA to tie up with realtors

Cash-starved BDA to tie up with realtors

With few takers for its flats and villas over the last three years, the Bangalore Development Authority (BDA) has decided to team up with private players. The move may take away the authority’s power to decide on prices.

The cash-starved BDA has sought the government’s permission to enter into the public-private partnership (PPP) model with private companies and realtors. The plan is to make quick business and raise money for various infrastructure projects by constructing and selling flats and villas.

A senior BDA official told DH that the authority seeks to undertake new housing projects under the PPP model. Once approved, undertaking projects on unused land and selling already constructed flats and villas will be faster and transparent, he said.

The BDA has over 2,000 flats and 30 villas which are unsold. Under the new PPP model, it will sell the land to a private company. Quality construction and sales will be the builder’s responsibility. In return, the BDA will get a share of the apartments and villas.

BDA commissioner Rakesh Singh confirmed that the government’s approval has been sought.

This model is being followed in case of the BDA shopping complex in Koramangala. But in housing projects, the BDA will take around 30 to 35% of the land or cash compensation along with flats or villas. This way, the BDA will also have a share in the project.

It will also divide BDA’s work. The role of BDA is to allocate sites and build layouts, but due to cash crunch, the authority has been unable to take up works. Through this scheme, more money will be raised, the official added.

If all goes well, the BDA plans to try this at the Dasanapura village where work is on to construct 340 villas. Nelamanagala Area Planning Authority has to take a call on the project.

Reacting to this Ashish Purvankara, president, Credai-Bengaluru and managing director Purvankara Ltd said that if the model is equitable and the proposition is good, then this can be taken up. The government has its own plus points and private companies have their own. The marketing and sales can be taken up by the private sector, he said.