No Wealth For Commonwealth
No Wealth For Commonwealth, Development In Limbo
Less than 18 months to go, but there's no guarantee that the projects for the Commonwealth Games will be completed on time. The economic recession has stalled several plans as developers grapple with a huge finance crunch.
Of the 39 plots auctioned by the DDA to private builders, work is progressing only on 19. Tirupati Infra Projects and Divine Infracom responsible for building five star hotels for the games have defaulted on their payments and have asked the Urban Development Ministry to extend their deadline.
Secretary Union Urban Development Ministry, Ramachandran says, "There are two cases where the DDA has asked the Ministry and a decision is yet to be made. DDA had targetted 6,000 rooms but it is doubtful but then compensated by asking for 5,000 rooms. Of course not all plot holders will be able to construct due to various reasons. Action will be taken against them."
The construction of the Games Village itself has run into trouble. The developers EMAAR MGF have written to the DDA for a loan. Unable to raise money by selling the flats, the company is left with no money for the project.
"Though the contract doesn't include funding, we are still thinking of whether it help if some flats could be purchased by DDA. No decision on it yet though,"Ramachandran stated.
Even the state govt is turning to the Centre to bail them out. The development of stadiums, roads and flyovers will cost around Rs 9,000 cr and the state is is not in a condition to finace the 59 projects it has undertaken.
State Finance Minister Dr Walia said, "We have requested the Government of India to help us. The Chief Minister has met Montek Singh Ahluwalia. For This year we have asked for Rs 5,00 crore."
The Tourism Ministry is hoping to build an additional 30,000 rooms for tourists at the Games but going by the present situation of the developers, the target seems hard to meet.
Now it waits to be seen whether Delhi will be the perfect host when it holds the Commonwealth Games in October 2010.
Source: ibnlive.in.com No wealth for Commonwealth, development in limbo
Less than 18 months to go, but there's no guarantee that the projects for the Commonwealth Games will be completed on time. The economic recession has stalled several plans as developers grapple with a huge finance crunch.
Of the 39 plots auctioned by the DDA to private builders, work is progressing only on 19. Tirupati Infra Projects and Divine Infracom responsible for building five star hotels for the games have defaulted on their payments and have asked the Urban Development Ministry to extend their deadline.
Secretary Union Urban Development Ministry, Ramachandran says, "There are two cases where the DDA has asked the Ministry and a decision is yet to be made. DDA had targetted 6,000 rooms but it is doubtful but then compensated by asking for 5,000 rooms. Of course not all plot holders will be able to construct due to various reasons. Action will be taken against them."
The construction of the Games Village itself has run into trouble. The developers EMAAR MGF have written to the DDA for a loan. Unable to raise money by selling the flats, the company is left with no money for the project.
"Though the contract doesn't include funding, we are still thinking of whether it help if some flats could be purchased by DDA. No decision on it yet though,"Ramachandran stated.
Even the state govt is turning to the Centre to bail them out. The development of stadiums, roads and flyovers will cost around Rs 9,000 cr and the state is is not in a condition to finace the 59 projects it has undertaken.
State Finance Minister Dr Walia said, "We have requested the Government of India to help us. The Chief Minister has met Montek Singh Ahluwalia. For This year we have asked for Rs 5,00 crore."
The Tourism Ministry is hoping to build an additional 30,000 rooms for tourists at the Games but going by the present situation of the developers, the target seems hard to meet.
Now it waits to be seen whether Delhi will be the perfect host when it holds the Commonwealth Games in October 2010.
Source: ibnlive.in.com No wealth for Commonwealth, development in limbo