Hyderabad: No takers for model markets constructed by Greater Hyderabad Municipal Corporation even after inviting tenders six times to lease them out.
Constructing them either in isolated locations or far away from residential areas have been cited as some of the reason for non occupancy.
Besides this, the rent of each shop in the model market is relatively higher than the current market price. Even though the state government has issued a GO, pertaining to decrease of lease rates, rent of the shops are still quite high. However, the corporation, not considering these factors, have finished the construction of 34 new model markets and are ready for inaugurations.
According to highly placed sources, each market was constructed at a cost of Rs 20.33 crore. There are seven shops on the ground floor, each of 70 to 140 sq ft, while the first floor has eight shops with parking, toilets and other facilities.
The markets were valued much higher than the current rate. While the average rent for a shop in the open market is Rs 10,000, renting a shop at one of the model markets would range between Rs 25,000-Rs 30,000.
Not addressing the issues, the corporation has gone ahead and have finished the construction of 34 model markets.
Sources said that the civic body are wasting public money with the unrealistic projects. The civic body had during its 100-day action plan in 2015 decided to construct 50 model markets against the target of 200. The corporation completed the construction of just 34.
A senior GHMC official said the government issued GO No. 82 on March 28, 2016, which stated that the rent should be 15 per cent more than the market value.
The rates were fixed under the AP revision of market value guidelines rules 1998. The corporation had brought the issue to the notice of the government.
“We have asked the Government to amend GO 82 and fix the rent only on the structures but not the vacant land on the model market premises. We asked the Government to decrease the rent to 10 per cent from the present 15 on the basis of current market value and carpet areas,” the official said.
The GHMC official further said that responding to the request by the civic body the government had decreased the price and issued orders in this regard.
However, the official said, constructing them in isolated places along with the high rent have resulted in the non occupancy of several model markets.
“GHMC constructed model markets at Beerappagadda, Gandhinagar, Premvathipet, Chandanagar, Moosapet. The corporation is yet to finalise tenders for several model markets. They would be allocated for SC/ST and BC beneficiaries, where the minimal rent was 10 per cent of current market value,” he added.
