Chandigarh PPP prospects diminish

With the UT administration deciding to scrap the ambitious Medicity project, the fate of mega PPP (Public-Private Partnership) projects coming up in Chandigarh, which promised to change the façade of the city, seems to be heading for unceremonious burials.

A few years back, the UT administration was gung-ho over the ambitious PPP projects planned, envisaging an investment of around Rs 4,000 crore. But now the projects are biting dust.

Medicity is the third project under the PPP mode to be scrapped after the Multimedia-cum-film City, to be developed by Parsvnath builders, and Theme-cum-amusement park, to be developed by Unitech.

The idea of Medicity project was conceived by the UT administration a few years back, but now with the scrapping of the project, it has been decided to set up 300-bed government hospitals in southern parts of the city. The project was scrapped following controversies over fixation of reserve price for the land.

The PPP model in building mega projects in Chandigarh has not struck a chord with the UT administration, which has been caught on the wrong foot.

These projects were caught in a stalemate after complaints of irregularities were raised by the social activists after obtaining information under the Right to Information Act.

Following the gross irregularities pointed out, the Central Vigilance Commission (CVC) had summoned records pertaining to the much hyped projects.

While Delhi-based realtor Parsvnath Developers Ltd created a havoc by pulling out of the Multimedia-cum-film city project as it claimed a refund of its initial deposit of Rs 47.75 crore, when the realtor found encumbrance in the allotted land.

Similarly, the Theme-cum-amusement park came under the scanner after allegations of favoritism towards a particular group (Unitech) in awarding the project.

The project was scrapped earlier this year. The IT habitat project, to be developed by Parsvnath Developers Ltd, has come under the scanner with objections being raised in the Comptroller and Auditor General of India report on the land deal inked by the Chandigarh Housing Board with Parsvnath Developers Ltd. According to the report, the land deal for the IT habitat had been done at concessional rates.

The only silver lining for Chandigarh remains the Education city project. Even as the project is moving at a slow pace, the administration hopes the project could see the light of the day.