MP's city projects yet to start

About two years after deal, projects face socio-legal tangle.

Two multi-crore redensification projects in Madhya Pradesh are awaiting response from investors — the Mumbai-based Gammon India and Bhopal-based Som group-led consortium SOMPEL.

Gammon had clinched the Bhopal Central Business District (CBD) deal after outbidding 17 heavyweights in the sector in December 2007, against the reserve floor price of Rs 225 crore. The 15-acre land is in prime business locality of South Tatya Tope Nagar in New Market but construction will only be possible after felling or relocation of as many as 300 trees. Some social organisations have raised protest against the company’s plan to relocate the trees.

Although officials at Gammon’s Bhopal project do not speak much on the project, work on it is yet to start. “We are reworking on layout of the project, which will be submitted to the government,” said a Gammon source.

The company had inked the deal with the MP government to develop and convert the area into a CBD. The government had roped in India Infrastructure Initiative facility (Triple-I) of IDFC and Feedback Ventures as project advisors for selection of the developer for this redensification project under the public private partnership (PPP) model. Madhya Pradesh Housing Board (MPHB) is the nodal agency for the project.

It is learnt that the issue of relocation of the tree is the prime reason for delay. The company has submitted an amount of Rs 200 crore (approximately) to the state government, but it is awaiting few clearances. And only an empowered committee on the project will clear them. “In fact delay on the project is due to procedural delay in government,” the source said, “our redesigned layout will be ready soon.”