1. REDEVELOPMENT OF MARKET AREAS
AT JAMSHEDPUR
Urban Development & Housing Department,
Government of Jharkhand
2. Jamshedpur a planned Industrial Town offers quality physical and social infrastructure for its residents
and visitors;
As a part of infrastructure creation, ten public markets were created between 1930 & 1990 across to
the town;
Markets along with Land were vested with Govt. under BLR Act
However with growth of population, development of unauthorized encroachments, deterioration of the
conditions of the shop, the infrastructure and hygienic condition of these markets has been under
severe strain;
The rapid urban growth has outpaced the capacity creation and there is an urgent need of augmenting
basic amenities/ infrastructure facilities like parking, fire safety, and access to emergency vehicles etc;
It is in keeping this in mind, Urban Development Department, Government of Jharkhand decided to
redevelop these markets on a Public Private Partnership (PPP) model and has taken out tender for
appointment of consultant for preparation of Feasibility Report and Detailed Project Report for 10
market
Background
3. Detailed Prefeasibility Report was prepared by in discussion with JUIDCO, JNAC. TATA Steel and other stakeholders for
all the ten market;
FR covered the market scenario and suggested possible components that maybe developed in addition to the
redevelopment of the existing markets. In discussions, the final components were approved
JUIDCO decided that in the First Phase, Draft DPR would be prepared only for Sakchi, Bistupur, Baridih and Golmuri.
The same was prepared and presented to JNAC/Tata Steel and other stakeholders and also submitted to JUIDCO.
The Draft DPR was thereafter presented to Committee of JUIDCO with Pr Secretary and Technical Sanction was
accorded in March 2018. Brief details of the Project are as follows:
Project Background
Market Land Area No of Existing Shops Current FAR
Utilization (% of
allowable)
FAR Proposed (in
the DPR) (% of
allowable)
Sakchi 17.20 2592 10.0% 88.0%
Bistupur 12.78 983 10.0% 89.7%
Golmuri 4.10 315 10.5% 100%
Baridih 2.92 213 8.1% 75.7%
4. A detailed presentation was made to Secretary UD & HD on 12.12.2018. He suggested the following:
Focus should be more on redevelopment of the existing shop keepers and their social benefits.
Explore the possibility whether some area can be allocated for housing for all and hospital in Sakchi
market
Bistupur being the city centre of Jamshedpur, ITUAL may explore the possibility of an iconic tower
modeled on the Shanghai Tower , may be explored, with all the facilities, amenities in one tower viz;
shops for re-habilitation of existing shop keepers, high end retail, multiplex, high end hotel, space for
townhall, commercial/ office space, urban haat, basement and multi level car parking etc. The
Chairman was of the view that focus should be to create more and more open and green space and
development of plaza/ public gathering space.
The project should clearly come out with the benefits it is accruing to the existing shop keepers, social,
economic & infrastructure benefits and benefits it accrues to the citizens.
He further instructed representatives of ITUAL to make necessary changes and submit a revised concept
plan (based on conceptual planning with indicative views).
The same was submitted to JUIDCO and DMA
Project Background
5. Overall Redevelopment of the urban centre which is highly unplanned and exposed to
several risks including Fire/ Stampede etc. The area also suffers from poor hygiene and
environmental degradation.
Provision of organised shops for all current occupants of the Market Area
Improvement of the current level of utilization of land which is very low and
unsustainable
Provision of adequate infrastructure such as Road, Water, Drainage, Sewerage, Solid
Waste, Power, etc.
Provision of housing for EWS/LIG and Medical Facilities through a quality Hospital
Provision of commensurate commercial and retail facilities which will cross subsidize the
development of the above and shall also provide livelihood options
Overall Objectives
7. Destination
Distance
(in km)
Jamshedpur Railway Station 7.5
Bistupur 3.5
Tata Steel 0.5
Civil Court 2.0
Tata Hospital 2.5
Sakchi Bus Stand 0.1
Introduction
Sakchi shopping centre is the largest market area in Jamshedpur. Total land area of the
market is to the tune of 17.2 acres (740520 sq. ft) with 2082 Shops as confirmed by TATA
Sakchi is considered to be the major retail hub in the city and is primarily famous for
wholesale trade and commerce.
. The market area is well mixed of various types of shops with predominant presence of
appeal & garments, wholesale grocery & stationery shops.
9. S
No Particulars
Area
(Sq ft)
No of
Shops
1 BLOCK –I 12000 15
2 BLOCK- II 7000 10
3 BLOCK- III 9520 53
4 BLOCK- IV 2730 21
5 BLOCK- V 1680 14
6 BLOCK- VI 2200 22
7 BLOCK- VII 1560 13
8 BLOCK- VIII 7288 48
9 BLOCK- IX 4740 11
10 BLOCK- X 9216 93
11 CITY MARKET 29016 120
12
TANK AREA – “ T-
SECTION”
18526
114
13
F- SECTION “DALDA
LINE”
5488
49
14 TG – SECTION 1215 9
15 TD – SECTION 405 3
16
G-SECTION PUCCA
ROOF
1620
45
17
I-SECTION Pucca
roof shop
6720
82
S
No Particulars
Area
(Sq ft)
No of
Shops
18 COMMON ROOF FRUIT 1610 13
19 COMMON ROOF FISH 1974 73
20 COMMON ROOF MUTTON 384 19
21 COMMON ROOF VEG ST 12768 266
22 COMMON ROOF POTATO 5988 109
23 “ I “ SECTION TINSHED 5120 64
24 “ E “ SECTION TINSHED 540 16
25 “ G “ SECTION TINSHED 252 7
26 “ H “ SECTION TINSHED 216 7
27
H Section tinshed roof
shop
252
6
28 E SECTION PUCCA SHOP 360 10
29 PARTY BUILT STALL A-Sec 2390 24
30 PARTY BUILT STALL B-SEC 6519 55
31
PARTY BUILT STALL C Sec
MANIHARY LINE
2368
37
32
PARTY BUILT STALL C
Section
2304
29
33
PARTY BUILT STALL D-SEC
3653.2
5 17
34 PARTY BUILT STALL H1-SEC 5355 34
S
No Particulars
Area (Sq
ft)
No of
Shops
35 PARTY BUILT STALL H2- 2512 24
36
PARTY BUILT STALL J & J1-
S
5222
74
37 PARTY BUILT STALL J2-S 2928 22
38 PARTY BUILT STALL J3-S 3279 27
39 PARTY BUILT STALL I1-S 1674 17
40 PARTY BUILT STALL K-S 4010.75 52
41 PARTY BUILT STALL L-S 6632 61
42 PARTY BUILT STALL P1-S 1308 18
43 PARTY BUILT STALL P2-S 2504 8
44 PARTY BUILT STALL O-S 3648 45
45 PARTY BUILT STALL O1- 1506 49
46 Sanjay, EADYMADE,KH 7204 144
Daily Toll basis 2049
Open haat (Total of
approx 195 shops of 8' x
6')
9360
195
COMMON ROOF
VEGETABLE STALL (68
nos of stall of 8' x 6')
3264
68
Shalini market (approx
280 nos of shop of 6' x 6')
10080
280
Total Area in Sq ft 238109 2592
Existing Shops
10. Sakchi Market - layout
Tin Shed Market
Total No of Shops: 896
Approx BUA: 75,000 sq. ft
Dilapidated C ondition
Anytime can collapse.
Needs immediate attention
Mostly Temporary
Sheds/ Semi Pacca
No of Shops: 1698
Approx BUA: 163000
sq. ft
No Civic Infrastructure
and dilapidated
12. PROPOSED MASTER PLAN
Basement + Vegetable Market (MDO) + Multi Level Car Parking
Basement + Market (MDO) + Hotel
Basement + Market (MDO) + Office Space
Basement + Market (MDO) + Retail
Development Plan as per DDPR
13. Redevelopment planned with state of the art infrastructure
Attempts were made to provide all existing shopkeepers shops
near to their existing place
A 200 Bed Hospital which shall provide quality medical facilities
to all sections of citizens of Jamshedpur;
288 Dwelling Units proposed for EWS/LIG category for the
economically weaker section of people;
Provision of adequate infrastructure facilities;
Balance area to be used to provide commensurate commercial and
retail facilities which will also provide significant livelihood
opportunities;
MLCP to connect directly to shopping complex and commercial
centre.
Proposed Development Plan for Redevelopment with changes
14. • Total BUA will be approx 1.5
lac sq. ft
• Basement and Surface
Parking: 200 cars
• Ground Coverage: 0.79
acres
Master Plan for Redevelopment
15. • 200 bed hospital
•Total BUA will be approx 2.15 lac
sq. ft
• Basement and Surface Parking:
225 cars
• Ground Coverage: 0.71 acres
Master Plan for Redevelopment
16. • 288 dwelling unit planned
•Total BUA will be approx 0.9 lac sq. ft
1 2
3 4
6
5
7
8
Master Plan for Redevelopment
17. • Modern Shopping Complex
• G+5 structure
• Retail, Food Court, Entertainment/
Multiplex etc
• TBUA: 3.2 lac sq. ft approx
• Connected with MLCP
• Existing shops on Ground Floor
• MLCP
• G+5 structure
• Connected with Modern Shopping
Complex
• TBUA: 2.7 lac sq. ft approx
• approx 700 PCU
• Existing shops on Ground Floor
• Modern Shopping Complex with
Commercial
• G+5 structure
• TBUA: 2.6 lac sq. ft approx
• Connected with MLCP
• Existing shops on Ground Floor
•Commercial Centre
•0.9 lac sq. ft
•Existing Shops/
Retail (1.85 lac sq. ft)
Master Plan for Redevelopment
19. Key Features
Every current occupant to be provided with an organised shop along with full
required infrastructure, adequate hygiene safety and security;
The entire area which is currently exposed to significant risks from fire, stampede etc
shall now be developed as a safe, organised and quality urban centre;
10 Mtr Wide Road all along the periphery of the Site
21. Re-Habilitation Land for Sakchi Market – AAM Bagan
Total area of Land : 6.153 Acre
Land available for Temporary
Rehabilitation : 3.8 Acre
The identified site is free from
encroachment.
JUSCO- supplied water & power is
available up to site boundary.
The site is flat terrain in nature
The existing Mazhar & Durga
Temple area within the site will be
untouched from development.
Site has been visited alongwith
JNAC Officials
23. Ambagan – Rehab Site
Block N
Block W
Block E
Block S
1
2
2
2
3
3
3
4
1. Shops from Block N will move to
Ambagan [chosen as Rehab Site]
CONSTRUCTION ACTIVITY FOR BLOCK E, W &
S
3. Shifted Shops of Block E, W & S will
move back to their respective Plots.
4. Shops from Rehab Site will move back to
Block N.
2. Shops from Block E,W & S will move to
New Block N.
CONSTRUCTION ACTIVITY FOR BLOCK N
Initial Movement
Return Movement
Re-Habilitation Plan of Sakchi Market
In view of site limitation, a sequential
rehabilitation plan has been proposed
25. Conceptual Re- habilitation Plan-Sakchi Market
Internal Road width : 3 M wide
Main approach road : 6 M
Proposed outer peripheral road for
expansion : 7 M wide
Space for loading /unloading
Dedicated Parking for Two wheeler/cycle
- 250 Nos
27. Bistupur Market
Land Area: 12.5 acres
No of Existing Shops: 983; (1.62 lac sq. ft)
Mostly temporary sheds; in dilapidated conditions
No basic amenities/ infrastructure facilities like parking, fire safety, unhygienic conditions, illegal tapping
of utility services etc
Re-development planned to provide:
Improved Market infrastructure with rights of existing tenants protected
Livable environment for small and marginal shop owners/ vegetable sellers
Quick emergency response with fire and other safety infrastructure
Proper sewerage and solid waste disposal
30. Phase II
Main Market:
Total BUA: 12.81 lac sq. ft
G+9 Structure
SB+G+9
SB+G+4: Retail; 4-5th :Multiplex & food court,
6-9th floor: Hotel & Office
Open Air Parking: 428 Nos
Development Plan as per DDPR
Phase I:
G+2 market to accommodate existing shops
except shops on the arterial roads
978 shops
Total BUA area: 2.18 lacs sq .ft
3rd, 4th & 5th Floor Floor: Car Parking of 2.18
lacs sq. ft
Total Parking: 624 (208 x3) Nos
Phase II
Multi Storey Parking (BUA): 5.66 lac sq. ft
G+5 structure,
Total Parking: 1680 (280 x6) Nos
3rd , 4th & 5th floor connected with Phase I
market
31. • Development of Organized Integrated City Bazaar with Modern
Infrastructure Facility for the existing Retailer
• Multi Storey Parking Facility
• Balance land to be utilized for Development of Retail,
Entertainment, Commercial and Hotel.
• Employment opportunity
• Economic Growth
• City Branding
All the above to be developed as One Mega Centre under a
Common Roof. One of its kind in India
Proposed Redevelopment Plan
32. Proposed Development Plan
Ground Floor: City Bazaar
1st to 5th Floor: Multi Storey
Parking
G+30 Tower
Basement, Ground and Upto 5th Floor: Retail,
Commercial, Emtertainment
6th to 30th: Hotel
33. City Bazaar
• The City Market will have:
• Wide Circulation (4.5 mtr and 3.78 mtr)
• State of the Art Infrastructure, Air Circulation etc 3 side open)
• Product wise Zoning: Vegetable, Fruits, Non Veg, Grocery, Hosiery etc
• One stop mega shopping destination
• Integrated with Retail, Commercial, Hospitality, & Entertainment Centre
35. Perspective View
Ground Floor: City Bazaar (1.43
lac sq. ft)
1st to 5th Floor: Multi Storey
Parking (4.79 lac sq. ft; 1600
pcu);
On street parking: 375 pcu
Ground Floor to Fifth Floor: High
End retail, Commercial and
Entertainment Zone (7.18 lac sq.
ft)
5th Floor onward to 30th Floor: Hotel,
with entire terrace of 4.5 acres at 5th
Floor (7.62 lac sq. ft)
Can be utilized for
Urban Haat: 2.82
acres
TOTAL BUA: 21.03 LAC SQ.FT
INCL PARKING
38. Proposed Rehabilitation Plan
Site I:
Total Area: 122900 sq. ft
Type A: 7x10; No of Shops: 715
Site III:
Total Area: 22920 sq. ft
Type A: 7x10; No of Shops: 53
Type B: 7x5; No of Shops: 153
Total A & B: 206 shop
Total Requirement: 922 Shops
Shops Provided: 1155
Site I: 122900
sq ft
Site II: 26040
sq. ft
Total No of Shops to be Rehabilitated: 922
Shops not to be rehabilitated (on the Road Side:
61)
Site III: 22920
sq. ft
Site II:
Total Area: 26040 sq. ft
Type A: 7x10; No of Shops: 53
Type B: 7x5; No of Shops: 181
Total A & B: 234 shops
Site 1: Within the boundary of the Existing Market
Site 2 & 3: On the adjacent Road (North Road) of the
existing market
39. Legends
Entrance Road 20 ft wide
Internal Road 12ft, 10ft wide
No of Toilets 20 nos
Water Supply Provision made
Drainage Provision made
Parking Provision made
Utility Provision made
The Design is modular and
shops of all size can be
accommodated
Rehab Sites: Perspective Plan
41. Golmuri Market
Golmuri shopping centre is community based local market
area in Jamshedpur.
It is located within residential colonies and accessible
through Golmuri Road.
The area is located close proximity to the premise of Tata
Tinplate and Incab industries.
Total No of Shops
TYPE OF SHOP No
AREA
(sq.ft.)
PARTY BUILT KIOSK 32 1280
PARTY BUILT STALLS 159 37555
COMPANY BUILT KIOSK 5 236
TIN SHED 49 5014
MUTTON STALL 4 416
FISH STALL 1 934
LINE.NO-02 61 6330
LINE.NO-01 4 3982
TOTAL 315 55748
45. Golmuri Market – Need for Rehabilitation
.
• Tata Steel Suggested Circus
Maidan – to be utilised for
Rehabilitation of the Existing
Market
• Circus Maidan is adjacent to
the existing market
• Total No of Shops: 315
• No of Shops to be
rehabilitated: 236
• Balance Shops will not be
rehabilitated as the same is in
the set back area.
• The Design is modular and
shops of all size can be
accommodated
47. MASTER PLAN FOR TEMPORARY REHABILITATION
Total No of Shops
Shops not being Rehabilitated
No of Shops being
rehabilitated
TYPE OF SHOP No
AREA
(sq.ft.)
No Area
No of
Shops
Area in Sq.
ft
PARTY BUILT KIOSK 32 1280 0 0 32 1280
PARTY BUILT STALLS 159 37555 18 4252 141 33304
COMPANY BUILT KIOSK 5 236 0 0 5 236
TIN SHED 49 5014 9 921 40 4093
MUTTON STALL 4 416 0 4 416
FISH STALL 1 934 0 1 934
LINE.NO-02 61 6330 48 4981 13 1349
LINE.NO-01 4 3982 4 3982 0 0
TOTAL 315 55748 79 14135 236 41612
As against requirement of 236 shops for rehabilitation, provision made for 288.
Total BUA required to be rehabilitated is 41612, provision is made for 45284 sq. ft
Type A: Size:11x22; Units: 117
Type B: Size: 11x11; Units: 110
Type C: Size: 7x8.6; Units: 61
The Design is modular and shops of all size can be accommodated
Legends
Entrance Road 20 ft wide
Internal Road 15ft, 10ft wide
No of Toilets 14 nos
Water Supply Provision made
Drainage Provision made
Parking Provision for 2 & 4 wheeler
51. • Total plot area = 178596 square ft.
• Total permissible ground coverage = 89298 square ft.
• Total F.A.R. = 3
• BUA Proposed: 574939 sq. ft
• Total proposed ground coverage = 76796 sq ft.
• Proposed construction can be = 2B+G+7
• Existing Shops to be accomodated on the ground floor
• Total no. of 4 wheeler parking = 678 cars.
Master Plan & Design
57. Introduction
The proposed market is spread over 2.98 acres of land comprising of 1 major land
parcel and 2 fragment plots
The market area is well mixed of various types of shops with predominant presence of
grocery, garments & medicine items
61. Existing Status of -Baridih Market
S. No. Name Plot Area (Sqmt)
1 Baridih-A 9547.02
2 Baridih-B 708.02
3 Baridih-C 1020.1
Area under proposed road 548.4
Total 11823.54
Total area (Acre) 2.92
Baridih-A
Baridih-B
Baridih-C
Baridih Market
TATA data
No. of Shops Total Area
Company Built 138 24507
Party Built 75 6532
213 31039
• Total no of Existing Shops : 213 nos
• Total Existing Built up area : 2884 sqmt
62. Rehabilitation site for -Baridih Market
Total area of land available for Re habilitation of
Existing Shops : 2.34 acre
The site surrounded by 5 m wide road all along
periphery
The Main approach road is from Kadani road
which is 7 M (ROW)
The site is free from all encroachment & Big
trees
Land mark of the site : Baridhi Post office
located western corner of the site.
the rehabilitation site is flat terrain in nature
the Site is located around 500 m from the
existing site.
the site was finalised after joint physical survey
with TATA officers & IIDC officers.
Baridhi Post
Office
Proposed Site for
Rehabilitation
64. Area Statement :
Total area of land : 2.34 Sqmt ( 9467 Sqmt)
Total no of Shops proposed : 213 Nos
Total proposed Built up area of shops : 3448.467 sqmt
Proposed green /open space area : 1135.65 sqmt
Car parking area : 572.62 sqmt
No of proposed car parking : 110 Nos
Utility area : 735.93 sqmt
Baridih Conceptual Re habilitation Plan Market
Rehabilitation Plan
68. Planning Concept : The Courtyard Cluster
• The vegetable and meat markets have been clustered together in the left wing of site.
• The concept is derived from the idea of community living where the central space of any
development is predominantly a pedestrian and public space.
• Central courtyard is thus the focal point of design where all other activities have been
clustered around them.
• Vehicular movement has been restricted to peripheral roads whereas all the internal
roads are pedestrian only.
• MDO has been mainly accommodated majorly on ground and first floor
• Courtyards and semi-open corridors ensure light and ventilation in the built spaces.
• It creates a premium commercial space while at the same time integrating the common
public needs into its design and layout.
• The site can be accessed by all four major corridors bounding it.
69. Sakchi
Development of the temporary rehabilitation site and temporary relocation of the identified existing tenants as per rehabilitation plan
detailed out in the approved DPR.
Development of market complex for the existing shop keepers. After construction completion, handing over 100% of the existing built
up area to Government of Jharkhand free of cost towards rehabilitation of the existing tenants/ others (The Authority Allocation)
The guideline for Authority Allocation will be clearly defined in the bid document.
The Authority shall be entitled to transfer or dispose of its Allocation in the manner as it deem fit to it.
Development of 200 bed Multi Speciality Hospital
Development of 288 EWS Dwelling Units
Development of requisite infrastructure for the MDO
Bistupur
Development of the temporary rehabilitation site and temporary relocation of the identified existing tenants as per rehabilitation plan
detailed out in the approved DPR.
Development of market complex for the existing shop keepers. After construction completion, handing over 100% of the existing built
up area to Government of Jharkhand free of cost towards rehabilitation of the existing tenants/ others (The Authority Allocation)
Development of Urban Haat (in 2 acres land)
Development of requisite infrastructure for the MDO
Minimum Development Obligation of the Developer
70. Golmuri and Baridih
Development of the temporary rehabilitation site and temporary relocation of the identified existing tenants as per
rehabilitation plan detailed out in the approved DPR.
Development of market complex for the existing shop keepers. After construction completion, handing over 100% of the
existing built up area to Government of Jharkhand free of cost towards rehabilitation of the existing tenants/ others (The
Authority Allocation)
Development Guidelines
The selected developer to follow the Jharkhand Government Building Bye Laws
Parking lot to be provided in each market place in line with the Building Bye Laws
Minimum Development Obligation of the Developer
71. Suggested Structure – Free Hold
Private Player quoting highest auction price subject to minimum reserve price will be provided the free hold rights on the land
Reserve Price: Circle rate of the land less the cost of construction of MDO and proportionate land area involved in construction of MDO.
The Selected Developer to undertake the Minimum Development Obligation.
Development of the temporary rehabilitation site and temporary relocation of the identified existing tenants as per rehabilitation plan detailed out
in the approved DPR.
After construction completion, handing over ...... sqft (to be detailed out in the bid document) area in each market complex to Government of
Jharkhand free of cost towards rehabilitation of the existing tenants/ others (The Authority Allocation).
The Authority allocation will be clearly defined in the bid document.
The Authority shall be entitled to transfer or dispose of its Allocation in the manner as it deem fit to it.
Development of the balance area (Developers Area)
Developer to have right over its share of space – can sell/ lease/ license the shops to end users.
Till construction, Developer will only have the License Rights and Free hold rights will be effective only upon transfer of MDO to Government.
Approval of the Cabinet will be required for bypassing the Revenue Department Notification and for new
structure
72. Lease Hold Model
GoJ to give development right to selected bidder for period of 99 years
The Bidding parameter can be Upfront lease premium or a mix of Upfront lease premium or Revenue Sharing (Gujarat Model) or a mix of Upfront and Revenue
Sharing
The Selected Developer to undertake the Minimum Development Obligation.
Development of the temporary rehabilitation site and temporary relocation of the identified existing tenants as per rehabilitation plan detailed out
in the approved DPR.
After construction completion, handing over ...... sqft (to be detailed out in the bid document) area in each market complex to Government of
Jharkhand free of cost towards rehabilitation of the existing tenants/ others (The Authority Allocation).
The Authority allocation will be clearly defined in the bid document.
The Authority shall be entitled to transfer or dispose of its Allocation in the manner as it deem fit to it.
Development of the balance area (Developers Area)
Developer to have right over its share of space – can lease/ license the shops to end users.
Ownership of land remains with GoJ.
Alternate Structure – Lease Hold
Approval of the Cabinet will be required for bypassing the Revenue Department Notification, sub leasing of
land and for new structure
73. Suggested Structure – Free Hold
Project Implementation Stage:
Stage I: The Authority shall provide permissive possession of the site to enable the Developer to carry out survey & Testing to
finalize the Development Plan. The Developer to take all approvals as maybe required.
Stage II: Development of Rehabilitation Site: The Developer will be given the possession of the rehabilitation site as identified in
discussion with Tata Steel & JNAC for development of the Rehabilitation Site in line with the approved DPR.
Stage III (Development of MDO and Commercial Complex): Upon handing over of the MDO to the Authority, the Authority shall
enter into a Free Hold Agreement with the Developer thereby providing the free hold rights to the developer for balance area
Payments:
20% of the Bidding Price before signing of the Agreement with the Developer
Balance 80% prior to transfer of free hold/ lease hold rights to the Developer (Phase wise)
All the costs towards payment of tax dues, other dues including utility charges
Project Development Expenses incurred by JUIDCO
74. The project involves substantial amount of investment and involves varied components such as
hotels, office space, retail shop etc. These requires specialised understanding for development and
marketing. In view of the same, the selected agency while continuing to be responsible towards the
Authority, shall need to take into suitable agreements allowing specialised agencies and investors to
come in and implement the project and also share the risks. In the current structure, where sub-
leasing is not allowed, the selected agency will be required to make all investment and operate the
same till the lease period, which may be a challenge in lease model.
The project because of its investment requires funding by way of debt & equity. A free hold structure
would be more attractive to the banker as this will allow the mortgage of the land and structure both.
The free hold right will provide indefinite ownership with the private player and does not require state
consent to transfer ownership. It has been seen that after the expiry of long term lease, the State in
most of the cases finds it difficult to get the property vacated from the lessee. On books the property
remains with Government but with encroachments forever
Benefit of Free Hold over Lease Hold
