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Mada banks on shopping arcade proposal

- PPP-mode focus on unused land at Luby Circular Road, Bartand & Hirapur

Cash-strapped Mineral Area Development Authority (Mada), faced with a plethora of problems including repeated strikes due to delayed salary payments, is thinking of using real estate assets to build shopping and residential complexes to boost revenues.

Mada is eyeing unutilised land at the bungalow premises of its MD on Luby Circular Road for the shopping complex project while vast stretches of land near Central Institute of Mining and Fuel Research (CIMFR) at Bartand and near Hari Mandir temple at Hirapur are being looked at for multi-storied residential complexes.

Mada has already initiated steps to restructure its organisation as a part of a revival bid that is being pursued with the help of SBI Cap, a sister organisation of State of Bank of India.

A meeting between MD of Mada Ravindra Singh and SBI Cap assistant general manager Vikash Kumar in June saw substantial progress on the nitty gritty of the restructuring plan. SBI cap is expected provide a loan of Rs 200 crore to Mada for executing the restructuring plan according to which around 700 of 1,800 Mada employees would be offered VRS.

Mada MD Singh said, “Although the proposal for developing a shopping complex and residential complex is in the initial stages, these buildings will be developed by a private agency for which a tripartite agreement would be formalised between Mada, SBI Cap and the private agency.”

He said they had held two rounds of meetings with SBI Cap officials in June and July when they provided all necessary data to SBI Cap to prepare the restructuring plan.

“We will execute the plan to develop buildings soon after getting the approval of the restructuring plan,” Singh said, and added that his interactions so far had been positive.

Sources in Mada said that the shopping complex plan was being thought of as a public-private partnership at the Mada MD’s bungalow on 2.5-acre land at Luby Circular Road. “Due to lack of maintenance, most of the area in the bungalow complex has been covered with wild plants and bushes,” said a Mada source.

Similarly, the Mada residential colony, spread over 10 acres, in front of Hirapur Hari Mandir also has vast stretches of vacant land which could be utilised for developing a residential complex. Around 4 acres of Mada land near the residence of its executive officer will also be used to develop dwelling units.

The selection of the private agency, however, would be done through tenders, clarified a Mada source.