TRICHY: The Trichy City Corporation is facing a significant funding crisis, raising alarms among councillors about the timely implementation of developmental initiatives as the assembly elections approach. Several commercial complexes established under the Smart Cities Mission are either vacant or incomplete, leading to considerable revenue losses for the corporation.
There are at least 58 shops in three Corporation-owned complexes that have remained empty for three years, with the potential to generate over 2 crore in annual rental income if fully occupied.
For the financial year 2025-26, the corporation anticipates revenues of 579 crore against expenditures of 700 crore, resulting in a deficit of 121 crore. This financial shortfall has hampered multiple projects, including new office buildings and food streets in various zones.
Among the underutilized assets is the Chathiram bus terminus, which was renovated at a cost of 28 crore in 2022. Of the shops available, 35 are currently vacant, leading to a monthly revenue loss of approximately 5 lakh. The Corporation charges 137 per sq ft for shops, which vary in size from 88 to 100 sq ft.
Similarly, the Marakkadai commercial complex, which underwent redevelopment costing 9 crore, has nearly 3,000 sq ft of unoccupied space, resulting in a minimum monthly loss of 3 lakh.
The Puthur air-conditioned mall, approved for 20 crore, is still unfinished, pending flooring work. Once complete, its 23 shops and food court covering over 1 lakh sq ft are expected to yield 15 lakh in monthly rental income. The Corporation has requested an additional two months for commissioning.
Councillors and traders highlight that high rent—almost double that of private complexes—is a significant factor contributing to the vacancies. “The rent is too high, deterring traders,” remarked LIC Shankar, councillor of Ward 20. Traders also point to poor store placement and insufficient parking as additional issues.
The Corporation’s officials recognize these challenges and are planning a 25% reduction in rent to attract tenants. “Vacant shops in Chathiram and Marakkadai will soon be rented out. We’re also considering partitioning spaces to create smaller, more affordable units,” said a senior official to TOI.
