INDIA BUSINESS WORLD - AUGUST (16^th - 31^st) 2007
The Month that was ...

NBCC BAGS RS 300-CR INA MARKET MAKEOVER DEAL

INA Market - one of Delhi's busiest markets, famous for fish, poultry and exotic vegetables, fruit and spices and routine provisions - is set for a makeover. A market, which is often dreaded by Delhittes for the fear of getting caught in hour-long traffic snarls, will soon throw up some pretty surprises.

The disorganised and worn-out shops on the 6-acre prime land in the heart of the Capital would be replaced by two multistorey malls. National Building Construction Corporation has bagged the deal from the government for makeover of the market at a cost of Rs 300 crore by 2010.

When contacted, NBCC CMD Arun Roy Choudhary said, "We have bagged the deal for redevelopment of the INA market. As far as spending is concerned, we would not take anything from the government. It would be met through internal resource generation."

The existing shopkeepers would be relocated in the plush malls and given shops as per the agreement.

A part of remaining shops would be sold out to retailers and rest leased out for office spaces. "As this is a prime area, it could fetch huge money as we sell shops. The rentals would take care of our regular earning after we complete the project. As far as relocation is concerned we will construct the market part-by-part so that routine business does not get hampered. Moreover, shopkeepers would be given adequate space, which would be in consonance with their existing shop size," Roy Choudhary said. The market currently houses 360 shops.

Present commercial rentals in the area are estimated to be well over Rs 350 per sq feet per month and capital value of capital value of property is over Rs 40,000 per sq feet. "As per the current growth estimates, by the year 2010, the rental values rise to the tune of Rs 450 to 500 and capital value Rs 50,000. Once the redev is complete the properties in the area a certain premium. An average 1,000 sq feet shop will command a price of Rs 4 crore in the market," real estate consultants Realty Verticals head Rajan Ahuja said.

Besides shops, some offices would also come up in the buildings and the highlight would be a rooftop restaurant. The proposed energy efficient building will also disabledfriendly and equipped with elevators and escalators to facilitate vertical movement.