The Trichy City Corporation is grappling with a significant financial shortfall, anticipating a ₹121 crore deficit in the 2025-26 fiscal year. This funding gap, stemming from projected revenues of ₹579 crore against expenditures of ₹700 crore, has put a hold on various development initiatives, including new administrative buildings and food street projects.
A key contributor to this financial strain is the substantial number of unoccupied commercial spaces within Corporation-owned properties, many developed under the Smart Cities Mission. Over the past three years, no fewer than 58 shops across three complexes have remained vacant, representing an estimated annual loss of more than ₹2 crore in potential rental income.
Delving into specific examples, the Chathiram bus terminus, which underwent a ₹28 crore renovation in 2022, currently has 35 unrented shops. This translates to a monthly revenue hit of around ₹5 lakh, with the Corporation setting rents at ₹137 per square foot for units typically between 88 and 100 sq ft. Similarly, the Marakkadai commercial complex, a ₹9 crore redevelopment project, features nearly 3,000 sq ft of empty retail space, leading to a minimum monthly loss of ₹3 lakh.
Further exacerbating the issue is the Puthur air-conditioned mall, a ₹20 crore undertaking that remains unfinished, awaiting flooring completion. Once operational, its 23 shops and food court, spanning over 1 lakh sq ft, are projected to yield ₹15 lakh in monthly rental income. The Corporation has sought a two-month extension to finalize commissioning.
Local councillors and traders point to several factors for the high vacancy rates, primarily citing rental costs that are nearly double those in private developments. They also highlight concerns regarding suboptimal shop layouts and insufficient parking. Acknowledging these challenges, Corporation officials are planning a 25% rent reduction to attract prospective tenants. Additionally, they are looking into subdividing larger units into smaller, more accessible spaces, with efforts underway to lease out the vacant shops at Chathiram and Marakkadai in the near future.
