(Top) The Bhawani Mall and the Keshari Mall. Pictures by Ashwinee Pati

Bhubaneswar, Oct. 30: The municipal corporation has decided to lease out its share of space at Bhawani Mall in Saheed Nagar and BMC Keshari Mall in Unit-II area to traders and business houses after it failed to sell them.

The decision was taken at a monthly meeting of Bhubaneswar Municipal Corporation (BMC) yesterday.

Commissioner Krishan Kumar said the civic body had been losing around Rs 3 crore at Bhawani Mall and around Rs 2 crore at Keshari Mall after it failed to sell off the spaces.

“We will lease out spaces in these malls the way Idco (Industrial Development Corporation of Odisha) does in high-rises constructed and maintained by it. The civic body will form its own policies after studying that of Idco’s,” said Kumar.

At Bhawani Mall, the municipal corporation owns 75.85 per cent of the whole area. However, while the private partner has sold its part, the civic body has not been able to sell off its share. There is around 17,000sqft space under the civic body at Bhawani Mall that would be leased out.

On the other hand at Keshari Mall, the civic body owns 35 per cent of the whole area. Though the private party has sold out most of its space, the municipal corporation is yet to sell off its share.

The market has been built on 1.061 acres and has 214 shops. It is alleged that it has not received occupancy certificate and fire safety clearance till sometime ago. However, officials said they had received clearance from the authorities and those pending would be procured shortly.

However, the construction of another mall is under way at Unit- IV. It started around 15 years ago.

Sources said the combined value of the municipal corporation’s share in the three markets is between Rs 135 and Rs 140 crore as per present rate.

“Our officials will find out the exact space in these malls and accordingly, we will estimate the price and other aspects for leasing out these spaces. It will help enhance revenue,” said the commissioner.

Besides the corporation is going to regulate vending zones in the city by framing rules. It will collect Rs 20 per sqft from the occupants. Earlier, the vendors used to pay a nominal price for the shops, which they later sold off.

“This is to streamline the vending zones and keep tabs on illegal markets. This will also boost revenue collection,” said an official.