Land-use rules hit Metro's plans

Tedious land-use clearance norms are discouraging the Delhi Metro Rail Corporation (DMRC) from taking up residential property development. The corporation is trying to shift its focus from residential area development to commercial property development.

"We are facing hurdles in developing real estate around Metro areas because the land use clearance procedures are wearing. Most areas around Metro regions are marked for institutional purposes and the process of 'land-use change' delays the projects.

"So we are looking at more commercial areas development to supplement our revenue streams," K Srinath, chief urban planner of the DMRC told Business Standard.

It took us four years to get land-use clearance certificate when we first applied for developing residential areas in the institutional areas, he said.

Srinath said the DMRC had applied for the land-use clearance certificate near the Delhi University (north campus) region but it was expected to take about a year, which would affect completion of project.

The corporation had identified areas in Line 3 (the Barakhamba Road-Dwarka route) for smaller residential area development, he said. "But they are in the planning stage and will take some time before the work starts," he added.

But the residential property development plan has not been dropped. It is developing 6.8 hectares near the Kyber Pass and is, apparently, getting a good deal from real estate developers like Parsvanath.

The corporation is focusing on commercial property development as higher returns are expected from such projects. It is developing about two hectares for commercial purposes near Bhai Veer Singh Marg and around 1.5 hectares in the Khayala region. Moti Nagar, Wazirpur and Inderlok may also see smaller commercial developments.

The corporation aims to raise Rs 300 crore from property development in the first phase and major chunk of it will come from commercial properties, particularly from its technology park at Shastri Park. It is eyeing to raise about 25 per cent revenue from this Rs 100 crore project.

"The response to the technology park is good. We are getting big ITES companies as clients at good prices. Companies that have shifted to the national capital region are planning to take up space in the park," Srinath said.

"Parking charges, advertisements in commercial areas and stalls give us considerable revenue. So our focus will be development of such smaller commercial areas," he said.