The Urban Development Department has issued a revised administrative approval for the re-construction of the Kankanady market building after the State Cabinet approved a revised funding pattern to finance the ₹41.50 crore project, according to Mayor Premananda Shetty.
With this, the modern market-cum-commercial complex to which the Mangaluru City Corporation had laid the foundation stone in February 2019 and the works which are going on in slow pace can now be carried forward with much ease.
The revised financial model will save the civic body some amount in terms of paying interest to the loans on the project, he said and added that the government issued the revised administrative approval on March 25 after the Cabinet approval on March 22.
Accordingly, the civic body would avail itself of ₹29.05 crore from the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) as loan at 4.65% rate of interest, ₹9.45 crore from a nationalised bank and ₹3 crore would be borne from Nagarothana Scheme Phase III.
The earlier funding pattern had proposed to avail of ₹22.50 crore from the KUIDFC at 6.50% rate of interest, ₹16 crore from a nationalised bank at 7.90% rate of interest and ₹3 crore from the Nagarothana Scheme Phase III. The government had given the administrative approval for it on December 7, 2018 after the Cabinet’s nod on November 17, 2018.
The Mayor said that in the revised approval, the government has not specified any rate of interest on the loan to be availed of from a nationalised bank keeping it flexible. In the revised pattern, the loan amount to be availed of from a nationalised bank has been reduced and the loan amount to be taken from the KUIDFC at a low rate of interest has been enhanced.
Mr. Shetty said that he held a meeting with the Commissioner of the corporation and contractors who have taken up the Kankanady and Kadri modern market projects on Saturday. It was decided that work on the Kadri project should be completed by December 2021 and the Kankandy market should be completed by September 2022.
According to the floor area and parking details with the corporation, the Kankanady market will have 10 floors, the lower and upper basements, lower and upper ground floors and additional six floors. It will have a net floor area of 18,338.61 sq m with the plinth area for shops/market at 3,326.06 sq m and plinth area for offices at 10,894.78 sq m.
As per the building plan, there will be space to park 71 two-wheelers and 505 four-wheelers which included 96 in lower basement, 91 in upper basement and 318 mechanical parking. It will have toilets and a sewage treatment plant.
The market will come up on 147 cents of land.