BDA moves to hand over Malleswaram market to private concessionaire

What Happened

The Bangalore Development Authority (BDA) is finalising a concessionaire agreement for the operation and maintenance of the redeveloped Malleswaram flower market and is prepared to hand over the shops on the ground floor to the Greater Bengaluru Authority (GBA) for allotment to vendors identified by the GBA. The old market site on Sampige Road was demolished in 2014 and 192 vendors were displaced. The rebuilt structure comprises a G+5 building with ground-floor flower shops and five upper floors available for commercial use, plus two basements for parking. A private firm has been selected as the concessionaire, with a 30-year period that can be extended by another 30 years based on performance, under a Design/Decorate, Build, Finance, Operate, Lease and Transfer (DBFOT) model. The concessionaire will rent, design to suit customers, operate and maintain the building, and pay the BDA an annual amount of ₹2.7 crore, with the upfront bid noted as ₹90 lakh for four months. The plan also includes a multi-level car parking (MLCP) on the site to accommodate additional vehicles, though work on the MLCP had not started at the time of reporting. Delays were attributed to issues including site handover, the pandemic, changes in the National Building Code, a hard rock at the foundation, and flooding at the site.

Why It Matters

The move to finalize a concessionaire arrangement marks a significant step in completing a long-delayed urban redevelopment project intended to restore a market that has accommodated flower vendors for decades after the 2014 demolition. The arrangement ties a private operator to design, build, finance, operate, lease, and transfer responsibilities for a 30-year term, with scope for extension, and introduces formalized revenue flow to the BDA through annual payments tied to the concession. By allocating the shops through the GBA, it also links vendor allotment to a local authority responsible for urban planning and vendor identification.

Background

The Malleswaram flower market site was redeveloped starting in 2014, with 192 vendors displaced from the old market. The rebuilt project comprises a four- to five-story structure (G+5) with two basements for parking. The ground floor hosts the flower market, while the upper floors are intended for commercial use. The BDA invited tenders to select a concessionaire to operate and maintain the building under a DBFOT model. The project faced multiple delays, including holdups in handing over a clear site, pandemic impacts, revisions to the National Building Code after design completion, the discovery of hard rock during foundation work, and flooding at the site.

Key Facts

• The BDA is finalising a concessionaire agreement for the Malleswaram market’s operation and maintenance.
• The BDA is ready to hand over shops to the GBA for vendor allotment.
• The old market was demolished in 2014, displacing 192 vendors.
• The redeveloped building is a G+5 structure with ground-floor shop space and five upper floors for commercial use; there are two basements for parking, with MLCP planned for the site to add 288 parking spaces.
• A private firm was selected as the highest bidder and will operate the concession for 30 years, with possible extension of 30 years based on performance.
• The concessionaire will pay the BDA ₹2.7 crore annually under a DBFOT model; the winning bid was ₹90 lakh for four months, implying ₹2.7 crore per year.
• The concessionaire will design, develop, and tailor spaces to customers, rent them out, operate and maintain the building, and may use the terrace.
• Delays cited include site handover issues, the pandemic, National Building Code changes, hard rock during foundation work, and flooding at the site.

What Happens Next

The BDA plans to formalize the concessionaire agreement and proceed with handover of shops to the GBA-identified vendors as part of the final steps. The concessionaire is expected to begin operating under the DBFOT model once the agreement is in place, with design and occupancy aligned to the needs of the identified vendors and the wider market area. Work on the MLCP remains a planned component of the project, with execution contingent on project progression and funding.