The ambitious project to construct a modern market complex at Kankanady in Mangaluru has been crawling forward at an excruciatingly slow pace, with delays stretching close to five years. The primary culprit for this prolonged stagnation is a severe shortage of funds, leaving the nearly completed structure in limbo and traders in a state of uncertainty.
Financial Hurdles and Escalating Costs
Initiated in 2021 with an estimated budget of Rs 41.5 crore, the proposed ten-storey market complex quickly ran into financial turbulence. Officials confirm that the construction costs ballooned beyond initial projections, creating a significant financial crunch. This escalation was further compounded by additional mandatory work. Naresh P Shenoy, the Deputy Commissioner (Development), explained that revised zoning regulations now place the site in Seismic Zone III, necessitating a higher quantity of steel and stronger structural elements, which pushed costs upward.
The situation reached a point where the contractor temporarily halted construction activities. MLC Ivan D'Souza revealed that a substantial payment owed to the construction company remains pending, forcing the work stoppage. While the structural work is largely complete, progress on the critical interior finishing has slowed to a trickle due to the monetary constraints.
Push for Completion and Revenue Shortfall
In a bid to break the deadlock, MLC Ivan D'Souza recently convened a meeting with officials from the Mangaluru City Corporation (MCC). He asserted that funds are currently available to undertake the finishing work on the first and second floors of the complex. D'Souza has directed officials to ensure the completion of at least two more floors at the earliest opportunity.
Once these floors are ready, the plan is to invite tenders for allotting shops, which could generate some revenue. However, the project's financial model is under stress. An area behind the complex was allotted to traders displaced from the old market, but the revenue generated from this arrangement is insufficient. It cannot cover the remaining construction costs or even service the interest on the substantial 70% loan availed from the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC).
Deadline Linked to Chief Minister's Visit
Adding a layer of political urgency to the project, MLC D'Souza has instructed officials to expedite work so that the building can be inaugurated by Chief Minister Siddaramaiah. The CM is scheduled to visit the city in January for the valedictory function of the Karavali Utsava. Officials have indicated that the contractor's outstanding payments could potentially be cleared by January or February using the city corporation's own revenue streams.
Despite the current impasse, Deputy Commissioner Naresh Shenoy clarified that the contractor has not abandoned the site entirely but is working intermittently, with progress severely hampered by the unresolved funding issue. The fate of this crucial urban infrastructure project now hinges on the MCC's ability to swiftly mobilize resources and fulfill its financial obligations.
