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Trichy City Corporation is facing a INR 121 crore revenue deficit this fiscal year, largely due to vacant or incomplete commercial complexes at Singarathope, Devadhanam, and Palakkarai. These facilities were meant to generate rental income and reduce reliance on taxes but have failed to attract tenants. The Singarathope complex has been empty for over a year, while Palakkarai remains unfinished. Officials admit to lacking a structured leasing or marketing strategy. With these assets idle, the city struggles to fund civic services. Experts warn that in mid-sized cities, public infrastructure must compete with private players, making proactive planning and tenant engagement crucial.
Trichy City Corporation is battling with a revenue deficit of INR 121 crore this fiscal year, a financial hole mainly with commercial infrastructure. Civic officials have disclosed that three major complexes at Singarathope, Devadhanam, and Palakkarai remain either entirely vacant or under construction, leaving municipal income projections severely off the mark. Advertisement
The largest among these, the multi-storeyed Singarathope complex, has been lying vacant for over a year. Similarly, the Palakkarai complex is yet to be completed and brought into use, despite considerable public investment. In Devadhanam, the lack of tenant interest has also rendered the space idle. These sites were initially developed with the intent to generate steady rental income and help the civic body reduce its dependence on traditional tax revenue. However, the plan appears to have backfired, with non-operational assets now becoming a liability.
Corporation officials admitted that earlier expectations of monetising these commercial structures have not materialised. The projected rental income was meant to fund civic services like waste management, maintenance works, and road development. But in the absence of tenants and with delays in completion, the shortfall has widened. Adding to the problem is the lack of a structured leasing or marketing plan that could attract occupants or private investors.
While the civic body has been generating revenue from other sources such as property tax and government grants, the current shortfall has made it difficult to meet service-level benchmarks. This isn't an isolated challenge; many mid-tier Indian cities have seen municipal assets suffer from poor planning, inefficient execution, and weak market connect.
Real estate experts familiar with the situation observed that in cities like Trichy, where public infrastructure competes with private commercial spaces and a growing digital retail economy, occupancy cannot be taken for granted. They added that unless civic bodies work proactively to complete pending construction and attract tenants with viable offers, the burden on municipal finances will only increase.
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