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Monday, July 23, 2018

2010: DDA gives Rs 100 cr to Emaar

The prestigious Commonwealth Games Village project,struggling to touch the finishing line under its cash-strapped prime promoter Emaar-MGF,is finally looking at financial succour from the Delhi Development Authority.

Written by Ayesha Arvind | New Delhi | Published: March 28, 2009 2:06:31 am

Games Village developer fighting funds crunch,L-G Tejendra Khanna asks civic agency to help firm meet deadline

The prestigious Commonwealth Games Village project,struggling to touch the finishing line under its cash-strapped prime promoter Emaar-MGF,is finally looking at financial succour from the Delhi Development Authority (DDA).

In a meeting on March 13,sources said,Lieutenant Governor Tejendra Khanna directed DDA — the project’s other stakeholder — to advance Rs 100 crore to Emaar so that work at the site could continue unabated.

It is understood Emaar-MGF had asked DDA for help in December last to meet deadlines. The Dubai-based realty major and the DDA are in a public-private partnership to build 1,168 flats at the site to host athletes. The contract defines Emaar will develop the Village and sell two-thirds of the flats at the market rate to raise funds for the project. The remaining flats were to be sold by the DDA at a pre-determined price.

However,the flats — some priced over Rs 2 crore — are not finding buyers because of the slow market. Sources said only 200-odd apartments of Emaar had been booked.

Khanna has now directed the DDA to check the feasibility of buying out the remaining Emaar flats at a negotiated price. A committee,with representatives from the DDA,the central public works department,Housing and Urban Development Corporation,the National Buildings Construction Corporation and Pricewaterhouse Coopers,has also been formed to determine the cost of the apartments. A DDA official said: “The L-G has directed DDA to release the advance for immediate relief,and then arrive at an MoU to decide about the rest.”

Emaar-MGF reportedly requires around Rs 1,000 crore to finish the project on time. According to a development facilitator,the advance amount will sustain the project for the next two months.

Principal Commissioner,DDA,Veena Ish told Newsline: “We are looking at all possible funding options to assist Emaar.” The urban body’s public relations director Neemo Dhar said: “The DDA is committed to ensure that the Games project is completed on time.”

The contractors facilitating the project are still apprehensive. “It has been more than a week since we heard of the interim relief,but have not received the money yet. Time is running out and workers are leaving. In a few months it will be monsoons.”

When contacted,an Emaar spokesperson confirmed that project partner DDA is discussing appropriate funding options. The company’s corporate communications official Santosh Singh said: “We are in touch with the DDA.”

Last December,Emaar had reportedly asked DDA for a loan,admitting to a cash crunch. In a letter on December 22,the DDA refused a loan,saying the contract agreement did not allow it. Later,in February this year,DDA reportedly said it might consider a loan or buy out flats if the need arose.

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