Despite financial constraints, the Vijayawada Municipal Corporation (VMC) and the APSRTC will construct commercial complexes in the city to generate revenue through rents, especially in the wake of the administration being shifted from Hyderabad to Vijayawada.
There is huge demand for commercial space for housing various government departments in the city. Sensing their huge potential for generating revenue, the VMC is planning to construct complexes at the existing corporation head office, Brundavan Colony, Besant Road, Bhavanipuram, Gopalreddy Road and NTR Complex. Similarly, the APSRTC will construct five more floors at the Pandit Nehru Bus Station (PNBS) complex.
Mayor Koneru Sridhar had last week called a meeting of engineers and told them to prepare a detailed project report for constructing the complexes as well as the source of funding. Corporation officials are keen to approach banks and organisations like HUDCO for loans to the tune of Rs. 250 crore.
According to sources, the proposals were also taken up with Chief Minister N. Chandrababu Naidu recently. They said the government had advised the RTC to construct the complexes under the Public Private Partnership mode and share the revenue generated by the projects.
“We expect up to Rs. 60 crore in rents from the proposed commercial complexes,” Mr. Sridhar said.
The RTC recently constructed 6,500 square feet space for housing the offices of the Managing Director, Executive Directors and other senior officers at a cost of Rs. 98 lakh.
