The Hindu : Tamil Nadu / Chennai News : Chennai Metro Rail Ltd to develop prison land

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Wednesday, Feb 27, 2008
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Tamil Nadu

Tamil Nadu - Chennai

Chennai Metro Rail Ltd to develop prison land

A. Srivathsan

Land value put at Rs. 475 crore

A view of the erstwhile Chennai Central Prison.

CHENNAI: The Tamil Nadu government has handed over the erstwhile Chennai Central Prison’s land near Park Station to Chennai Metro Rail Limited (CMRL) for revenue augmentation purpose.

Government sources say that the CMRL has appointed Tamilnadu Urban Infrastructure Financial Services Ltd (TNUIFSL) as its consultant and TNUIFSL has appointed CRISIL Infrastructure Advisory as their consultants to explore the nature and modalities of developing the land.

The cost of the 13-acre land is conservatively put at Rs. 475 crore.

No outright sale

The outright sale of the land has been ruled out.

Instead, a commercial model for developing the property has been chosen. Once the scope of the project is finalised, tender documents will be drafted.

The property will be available for bidding.

The highest bidder will have an agreement of lease with the CMRL to develop the land, say the sources.

Ever since the Chennai Central Prison was shifted to Puzhal in 2006, the land near Park Station has been lying vacant.

Initially, the Government planned to hand over the land to Southern Railway for providing a rail link between the Central station and Egmore. But the proposal was dropped and the possibility of building a commercial complex and a multi-storied car parking was explored.

The property has now been handed over to the Chennai Metro Rail Limited.

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