Revised funding approved for rebuilding Kadri Market

Agencies

Mangaluru, 23 Mar 2021: The re-construction of Kadri Market at Mallikatta which is in a standstill mode for the last three years due to funding pattern issues is expected pick up pace as the State Cabinet has approved of a revised funding pattern to complete the work.

 

Mayor Premananda Shetty told  that as per the revised funding pattern, the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) will sanction 70 % of the project cost of the building as loan while the balance 30 % project cost will be borne by Mangaluru City Corporation.

 

“The Cabinet approved of the revised funding pattern a few days ago. Now, about 30 % of the market building works have been completed. The remaining works will be completed in the next 10 months,” the Mayor said.

 

The corpoation laid the foundation stone for the Rs 12.30-crore modern market-cum-commercial complex at Kadri in March 2018.

 

The project was launched after fixing the funding pattern at a ratio of 50:30:20. It meant that the project was to get 50 % of the estimated cost as loan from the KUIDFC and 30 % of the total cost as loan from any nationalised bank. The corporation would have had to bear the remaining 20 % cost.

 

Mr. Shetty said that the then administration in the civic body launched the project in a hurry when there was no clarity on the availability of funds. None of the nationalised banks had committed their loan as the interest rate for bank loan had been fixed at 7.90 %. The banks did not come forward stating that the interest rate was very low.

 

It forced the present administration in the civic body to revise the funding pattern. In the revised funding pattern, no loan from any nationalised bank will be taken.

 

As per the funding pattern revised for re-building the Kadri market, 70 % (which is ? 8.60 crore) of the total project cost will be borrowed as loan from the KUIDFC at 4.65 % rate of interest. The balance 30 % (? 3.70 crores) will be borne by the city corporation from its enterprises fund, the Mayor said.

 

Building plan

The building, coming up on 45 cents of land, will have a floor area of 75,112.98 sq ft. The multi-storey building will have lower and upper basements, lower and upper ground floors and three more floors.

 

It will have parking facility in the lower and upper basements to park about 70 vehicles.

 

The upper ground floor will have a vegetable market, with 36 shops. The lower ground floor will house a non-vegetarian market with 28 shops. There will be shops and offices in the first, second and third floors.