Demolition under way to clear land for the construction of a multi-storey building that will house a few government departments at Unit-V in Bhubaneswar on Thursday.

The state government has planned to set up three separate towers of nine storeys each to house many of its offices.

Executive engineer of public works department D.B. Behera told The Telegraph the construction of the towers, which would come up on one lakh square feet, was estimated at Rs 123 crore.

"After the completion of the demolition drive, the construction plot will be handed over to the designated executive agency who will begin the work," said Behera. Larson & Tourbo (L&T) has been awarded the tender to commission the work. The firm aims to complete the project in two years. Sources said most offices functioning inside the existing directorate's building would be shifted to the new complex.

The development authority, in collaboration with the municipal corporation, public works department and police, started the demolition drive on Tuesday.

BDA liasioning officer Subhransu Sekhar Mohanty said nearly 70 families were evicted and rehabilitated at Gandamunda on the city outskirts. "They were also been given Rs 6,600 towards shifting charge. The drive will be completed by Friday," said Mohanty..

Picture by Sanjib Mukherjee