Ludhiana, September 27
In what appears to be the revival of the real estate market, a five-acre land parcel has been sold for a whopping sum of Rs 220 crore in Ludhiana.
With this, the real estate market has touched a new high after passing through a long phase of slump in the industrial and business capital of the state.
The Rail Land Development Authority (RLDA) has auctioned a chunk of 5-acre multi-functional complex (MFC) site to a leading real estate developer for a sum of Rs 220 crore.
The site is located close to the railway station here, which was undergoing major redevelopment and upgrade at a cost of Rs 529 crore.
Sharing details, a senior functionary of the RLDA told The Tribune here today that the land, which was meant for mixed use, was auctioned through a competitive bidding process conducted by the authority.
Located near the Ghumar Mandi Fountain Chowk in the heart of the city, the land can be used for both residential and commercial purposes.
“This is probably the highest price that the land has fetched in the city so far,” Anupriya Singh, a leading realtor, said.
She said this deal would set a benchmark for the future sale/purchase of the land and would further strengthen Ludhiana’s real estate market.
According to information, the buyer real estate firm would develop a residential and commercial complex on the site, which would coincide with the ongoing work to give a new and modern look to the British era’s biggest junction in the Ferozepur division.
What are MFCs
Multi-functional complexes (MFCs) are meant for both residential and commercial complexes. The RLDA that is a statutory authority under the Ministry of Railways and is responsible for railway land development that includes leasing of commercial sites and multifunctional complexes, colony redevelopment and station redevelopment had identified such sites across the country as part of the initiative to generate revenue for the development of railway stations.
Work to revamp railway station underway
- The work to redevelop and upgrade the Ludhiana railway station at a cost of Rs 528.95 crore has been expedited after the geotechnical investigation, survey and relocation of existing structures has been completed.
- The project, which was awarded in the engineering, procurement and construction (EPC) mode to a local firm on December 19 last, has been targeted to be completed by August 2, 2025.
- Being undertaken through the engineering, procurement and construction (EPC) mode, the redevelopment work entails a host of new facilities and upgrade of the existing services to give a new and modern look to the British era’s biggest junction in the Ferozepur division.
- The total project cost of Rs 528.95 crore included the contract value of Rs 472.94 crore, project management consultant cost of Rs 4.56 crore and other allied expenditures.
- The development assumes significance as this will be the first major revamp of the railway station established way back in 1860.
The mandate of the RLDA is to generate non-fare revenue from vacant railway land through its development and monetisation.
The site has an opportunity for a residential and commercial real estate development with following salient features.
- Located near the railway station in the heart of the city
- Easy accessibility to railway station, bus stand and other city areas
- Good visibility from the station approach road
- Opportunity to create a landmark in the city
- Land form and topography suitable for the construction
- Vibrant commercial catchment area
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