Berhampur, Feb. 19: The proposed site for a multi-crore integrated commercial-cum-residential complex project here is now being used as a garbage dump.

In 2002, chief minister Naveen Patnaik had laid the foundation stone for Gajapati Plaza, a Rs 95.78-crore project, to be built over five acres at Corporation Road along National Highway-217 in the heart of the city. The project was meant to be a joint venture between Berhampur Development Authority and a Calcutta-based firm.

“Facilities, such as shopping malls, hotel and an entertainment arcade were supposed to be provided in the complex. We are determined to execute it,” said chairman of Berhampur Development Authority Kailash Rana.

An MoU was signed between the Calcutta-based company and Berhampur Development Authority in August 2008.

“We have written a letter to the company and are waiting for its response,” Rana said.

Earlier, Berhampur Development Authority had acquired five acres from the state government on lease for construction of a shopping complex. In 2003, Berhampur Development Authority invited applications for allotment of shops. As many as 170 people had applied for shops and deposited Rs 10,000 each.

However, in 2007 Berhampur Development Authority decided to take up the Gajapati Plaza project in public-private partnership (PPP) mode. It signed an MoU with a Calcutta-based company for construction of a residential-cum-commercial complex at an estimated cost of Rs 97 crore.

The company was supposed to pay Rs 9.4-crore to Berhampur Development Authority as lease amount for 75 years. However, various social and political groups in the city, who were against handing over the prime land to a private company, opposed this. Now, the project site is being used as a garbage dump.

Berhampur Development Authority returned the money to some of the traders who had applied for shops in the complex. But many traders refused to take back the money and continued their demand for space in the proposed complex.

“Many traders feel that the administration needs to find an alternative site for the wholesale foodstuff market located at Bada Bazar. They have suggested to the state government and Berhampur Development Authority to consider the site of the proposed Gajapati Plaza project for the purpose. The wholesale foodstuff market at Bada Bazar always remains congested with little space for parking. It’s tough for trucks to enter or exit the area,” said president of Ganjam Chamber of Commerce C. Ravindranath.