Chandigarh, April 15: Amid mounting financial challenges, the Chandigarh municipal corporation (MC) is looking to generate revenue by developing a residential project in Manimajra’s Shivalik Enclave, in partnership with the National Buildings Construction Corporation (NBCC).
The project is planned on a 6.9-acre land parcel in Pocket 6 of Manimajra, earmarked for residential development under the Chandigarh Master Plan. While the MC is considering auctioning the vacant land with a reserve price of ₹300 crore — expected to fetch at least ₹500 crore — officials say that a revenue-sharing tie-up with NBCC could potentially double profits.
NBCC (India) Limited, a Navratna public sector enterprise under the Union ministry of housing and urban affairs, specialises in project management consultancy, engineering-procurement-construction (EPC), and real estate development. If roped in, NBCC will construct and develop the proposed society in return for a share of the revenue generated.
The urban planning department has already approved the layout and zoning plan for the project. The layout includes five residential pockets with buildings up to five storeys, permitted under a sanctioned floor area ratio (FAR) of 2. It also provides for a shopping complex, green areas, a playground, and reserved land for structures such as a school and the Nirankari Bhawan. Two copies of the approved layout have been forwarded to the MC as part of preliminary preparations.
MC commissioner Amit Kumar said, “We have written to deputy commissioner Nishant Yadav to seek clarity on the land’s ownership, including whether it is on a freehold or leasehold basis. Vacant land will be auctioned as per the new collector rates, with the reserve price pegged at ₹300 crore. At the same time, we are also in talks with NBCC as we are exploring the option of a revenue-sharing model to boost our profits.”
Following multiple meetings with Punjab governor and UT administrator Gulab Chand Kataria, mayor Harpreet Kaur Babla is actively pursuing the sale of the land to refill MC’s fast-depleting coffers.
This is not the first time the MC is auctioning its land. In 2005, it sold a 5.39-acre plot in Manimajra for a similar housing project on a freehold basis. The land was allotted to Delhi-based Uppal Housing for ₹108 crore, but the project was embroiled in controversy. Under the agreement, 15% of the units were to be reserved for economically weaker sections (EWS), with each unit having a minimum area of 200 square feet.
The developer failed to comply, prompting a show-cause notice and a penalty of ₹1.5 crore. Residents later moved court, and the project was stayed.
A second land sale was made in 2006 for the JW Marriott hotel project in Sector 35, auctioned on a leasehold basis for ₹101.37 crore.
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