LDA to rope in private investors

LUCKNOW:The Lucknow Development Authority (LDA) has decided to rope in private companies to invest in city’s development projects and this association will be based on ‘public private partnership’ (PPP) model.

To start with, the LDA has decided to invite private investors to invest in its Vasant Kunj and Mohan Road housing projects at Hardoi road. In both these projects, the development authority has not been able to start construction work despite acquiring land due to dispute with villagers over compensation, said sources.

The decision to invite private investors on PPP model was taken at the LDA’s board meeting on Monday. Divisional commissioner Anil Garg presided over the meeting in which LDA’s vice chairman PN Singh, district magistrate Kaushal Raj Sharma and municipal commissioner Uday Raj Singh were also present.

Recently, the development authority has already auctioned one of its most ambitious projects, Shan-e-Awadh at CG City, Sultanpur Road, for around Rs 427 crore through e-auction to a private developer. This was the LDA’s biggest auction till date.

Encouraged by the auction, the development authority is also likely to hand over its other projects to private investors such as sports complex at Kanpur Road and budget hotel at Faizabad Road. According to LDA secretary MP Singh, participation of private investors will also help the development authority to ward off financial pressures in executing development projects.

“The LDA’s decision to rope in private investors for its development projects will ease some pressure from the development authority and will allow it to concentrate on development work of the city,” said a senior LDA official. The LDA and around 12 private developers have acquired more than 10,500 acres of land on NH-56 (Lucknow- Sultanpur road) for developing hi-tech township. The township would be on around a 10-km stretch of the road, starting from Arjunganj to Gosaiganj.