MANGALORE: Market modernization in the city will receive a shot in the arm with Mangalore South MLA JR Lobo pushing for development of five markets.

The development of Central Market, the largest of them all, Urva Market, Urva Stores, Kadri and Kankanady markets is estimated to cost Rs 300 crore.

While the Central Market will see upwards of Rs 150 crore being pumped possibly through a private-public participation (PPP) initiative, the rest may receive funds either from Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) or through banks.

Lobo, who wants to achieve financial closure for these projects within a year, has set eyes on completing these them before his term ends.

Lobo told TOI while planning for the Central Market is complete, financial closure discussions have to take place.

Financial closure is defined as a stage when all the conditions of a financing agreement are fulfilled prior to the initial availability of funds.

Financial closure is attained when all the tie-ups with banks and financial institutions for funds are made and all the conditions precedent to initial drawing of debt is satisfied. In a PPP project, financial closure indicates the commencement of the concession period. The date on which financial closure is achieved is the appointed date which is deemed to be the date of commencement of concession period.

For the development of the Central Market we need close to Rs 150 to Rs 200 crore. Two market structures (vegetable and meat) at the Central Market with a road running in between will be removed and made into unified structure according to the plan. If we get funds through PPP, the first three floors and parking will be given to the corporation and the rest, about seven floor could be built up to get revenue to investors,” he said.

The other four markets need much smaller funding in the region- of Rs 20 to Rs 30 crore. The Mangalore Urban Development Authority (MUDA) has shown interest in developing Urva Stores and Urva Markets. A discussion to this effect will be held on January 8,” said Lobo.

He said that for smaller markets revolving fund from KUIDFC or bank loan can suffice since the shops can be auctioned on deposit basis and the interest can service the debt.

Courtesy: Times of India