Prime real estate of 60 acres may be up for grab in Sarojini Nagar, Real Estate News, ET Real Estate

New Delhi: The Center is looking to monetise its prime real estate assets in the national capital to raise funds for the redevelopment of seven residential colonies. As part of the plan, it is weighing the option of selling about 60 acres of land and built up properties. Sarojini Nagar,

Earlier, the plan was to sell only built-up properties, but now the plan is to consult with real estate developers to find the best option. “We are open to both options. We will see from whom we will get more funds,” an official told TOI, adding that four-five parcels have been identified.

This is similar to the model adopted for the redevelopment of New Moti Bagh a decade ago, when a plot of land was sold for a hotel complex to fund a project containing bungalows and apartments for senior executives. NBCC Also sold office space to public sector and government entities in East Kidwai Nagar, and is following a similar model. Naoroji Nagar Along Ring Road.

Six years ago, the cabinet had approved the redevelopment of Sarojini Nagar, Netaji Nagar, Naoroji Nagar, Kasturba Nagar. Tyagaraja NagarSrinivaspuri and Mohammadpur with around 26,000 units at an estimated cost of Rs 32,835 crore. They were targeted to be completed by 2021 in a “phased manner”, but the projects are far from complete due to several issues including court cases. Under the new proposal, the total number of residential units from Type-II to Type-VII will be around 20,000 for housing the employees of Class IV to Secretary level.

Faced with increased cost as well as the expanded scope of work, the government is proposing to raise more funds. For example, the government is planning to build an elevated corridor from East Kidwai Nagar to IGI airport to meet the traffic demand in future, with an estimated cost of around Rs 5,000 crore. This has prompted the Ministry of Housing and Urban Affairs to look for ways to mobilize resources, with the sale of some real estate in Sarojini Nagar being one such scheme.
NBCC is removing two-storey government houses spread over 258 acres, which were constructed in 1955 to create modern housing and commercial space. The government had estimated construction of 25,667 housing units under this “self-financing” scheme. But these have been delayed and cost overruns due to a number of issues including court litigation.

Although NBCC is selling the commercial space developed at the World Trade Center in Naoroji Nagar and aims to generate Rs 12,000 crore, this will not be enough to fund the redevelopment projects. Hence, there is an offer to sell the plot, the sources said.

Officials said that while going for sale of land, the government should take into account the experience of Noida and Greater Noida, where private players delayed paying the amount to the development authority.