Varanasi Municipal Corporation Unveils Major Development Projects Funded Through Municipal Bonds
The Varanasi Municipal Corporation (VMC) has announced ambitious plans to transform urban infrastructure in the historic city, leveraging innovative financing through municipal bonds. With a strategic investment of Rs 50 crore raised from the market, the corporation is set to develop two significant projects aimed at boosting local economy and improving civic amenities.
Sigra Project: Underground Parking, Market Complex, and Hotel
At the heart of this initiative is the Sigra project, where VMC plans to construct a state-of-the-art Ground Plus-6 building near Sigra Stadium. This multi-purpose facility will include an underground parking lot, a modern shopping complex, and a hotel, with a total estimated cost of Rs 74.52 crore. Of this, Rs 40.52 crore is allocated specifically for the building infrastructure.
The underground parking facility is designed to accommodate 56 cars and 22 two-wheelers, spanning an area of 2600 square meters. This is expected to alleviate parking congestion in the bustling Sigra area while generating a projected monthly income of Rs 65 lakh. The integrated commercial spaces are poised to become a hub for retail and hospitality, enhancing the local urban landscape.
Senpura Project: Mega Shopping Complex at Veterinary Hospital Site
In a parallel development, VMC will transform the closed Ghoda Aspatal veterinary hospital premises in Senpura into a vibrant commercial zone. A Ground Plus-2 commercial building will be erected on 2.5 acres of land along Kabirchaura Road, with an investment of Rs 34 crore. This project is anticipated to yield a monthly revenue of Rs 35 lakh, contributing to the corporation's financial sustainability.
Municipal Commissioner Himanshu Nagpal highlighted that the corporation issued Rs 25 crore in bonds specifically for this venture, underscoring the strategic use of market funds for public infrastructure.
Financial Strategy and Revenue Projections
The VMC's innovative approach involves leasing shops in these complexes at market rates for a 30-year period, with provisions for periodic rent increases to ensure long-term viability. According to officials, both projects combined are expected to generate over Rs 1 crore in monthly income. This robust revenue stream is projected to recover the entire Rs 50 crore bond investment within just 50 months, well ahead of the 7-year repayment timeline.
Over the seven-year period, the corporation forecasts a total income of Rs 84 crore from these developments, demonstrating a sound financial model that balances public benefit with fiscal responsibility.
Leadership and Timelines
Mayor Ashok Kumar Tiwari and Municipal Commissioner Himanshu Nagpal recently conducted a site inspection of both the Sigra and Senpura projects, emphasizing the urgency of commencement. Mayor Tiwari directed officials to expedite construction, reaffirming VMC's commitment to timely and quality execution of development initiatives.
In addition to these commercial projects, VMC is also revamping Shaheed Udyan Park to give it a fresh aesthetic appeal. This renovation, undertaken by Sudama Construction and Builders of Lucknow at a cost of Rs 7.49 crore, is slated for completion by June 30, adding to the city's green spaces and recreational facilities.
These initiatives mark a significant step in Varanasi's urban renewal, leveraging municipal bonds to fund infrastructure that promises economic growth, improved amenities, and enhanced quality of life for residents.
