Renovated Shops: City Corporation Plans to Lease Renovated Shops in Coimbatore | Coimbatore News
Coimbatore: The city corporation is planning to let out shops at the newly renovated markets on lease to generate more revenue.
The corporation has been renting out its shops all these years.
An official from the central zone said that a proposal has been submitted before the corporation commissioner Sivaguru Prabhakaran, recommending a new leasing method from April 1 as the current rental method ends by March 31.
He said, “The income generated through the rental system is much less when compared with the leasing system. Moreover, each shop must pay different rents based on vehicle movement and earnings. There are also cases filed in the Madras high court challenging the disparities in rental rates. To end this, the corporations should directly rent or lease individual shops rather than getting through a third party.”
The proposal is under evaluation. Once approved, the shop allotment orders will be issued even before construction begins, the official said.
In its 2023-24 Budget, the corporation announced the renovation of MGR Market, Anna Market, and Tomato Market at a total cost of 8.07 crore.
While MGR market will be renovated at a cost of 3.15 crore, Anna Market will be renovated at a cost of 4.19 crore and Tomato market at a cost of 73 lakh.
Only 30% of renovation work has been completed in these markets.
Of the total 436 shops in Anna Market, renovation work is completed in 70 shops.
A zonal officer in charge of the MGR Market said that the renovation of shops at the back end and the construction of toilets are completed. These shops are ready to occupy. The construction of the next row of shops is yet to commence.
Meanwhile, wholesale traders in the market are dismayed at the delay in renovation work.
One of the wholesale traders at the MGR Market said, “I’ve been associated with this market for more than 15 years. It is difficult for traders to do business without roofing or a proper wall. We welcome the renovation of shops in the market. But delay in the construction process is affecting our business. More than 2,000 people visit the market daily.”
The corporation has been renting out its shops all these years.
An official from the central zone said that a proposal has been submitted before the corporation commissioner Sivaguru Prabhakaran, recommending a new leasing method from April 1 as the current rental method ends by March 31.
He said, “The income generated through the rental system is much less when compared with the leasing system. Moreover, each shop must pay different rents based on vehicle movement and earnings. There are also cases filed in the Madras high court challenging the disparities in rental rates. To end this, the corporations should directly rent or lease individual shops rather than getting through a third party.”
The proposal is under evaluation. Once approved, the shop allotment orders will be issued even before construction begins, the official said.
In its 2023-24 Budget, the corporation announced the renovation of MGR Market, Anna Market, and Tomato Market at a total cost of 8.07 crore.
While MGR market will be renovated at a cost of 3.15 crore, Anna Market will be renovated at a cost of 4.19 crore and Tomato market at a cost of 73 lakh.
Only 30% of renovation work has been completed in these markets.
Of the total 436 shops in Anna Market, renovation work is completed in 70 shops.
A zonal officer in charge of the MGR Market said that the renovation of shops at the back end and the construction of toilets are completed. These shops are ready to occupy. The construction of the next row of shops is yet to commence.
Meanwhile, wholesale traders in the market are dismayed at the delay in renovation work.
One of the wholesale traders at the MGR Market said, “I’ve been associated with this market for more than 15 years. It is difficult for traders to do business without roofing or a proper wall. We welcome the renovation of shops in the market. But delay in the construction process is affecting our business. More than 2,000 people visit the market daily.”