Mangaluru: The construction of the new market complex at Kankanady has been progressing at a sluggish pace for nearly five years, with officials attributing the delay primarily to a shortage of funds. The ambitious 10-storey project, which was taken up in 2021 at an estimated cost of ₹41.5 crore, has faced repeated setbacks due to escalating construction costs, revised technical requirements and financial constraints, raising concerns among traders and local representatives about its timely completion.
According to officials, while the structural work of the building has largely been completed, progress on interior works has slowed considerably. The delay has been compounded by rising material costs and additional expenditures incurred during the construction phase, which have strained the project’s finances.
Contractor halted work due to pending payments
MLC Ivan D’Souza said the contractor had temporarily halted construction as a substantial amount payable to the company is yet to be released. He said he recently held a meeting with officials of the Mangaluru City Corporation (MCC) to review the status of the project and explore ways to expedite the remaining work.
“Funds are currently available to carry out the finishing work on the first and second floors of the market complex,” D’Souza said. He added that officials have assured him that efforts are being made to complete at least two additional floors at the earliest, despite the larger financial challenges facing the project.
Revenue shortfall affects remaining work
D’Souza explained that an area behind the market complex had been allotted to traders who were earlier conducting business at the old market. However, the revenue generated from this arrangement has not been sufficient to take up the remaining construction work or to service the interest on the loan availed for the project.
He said nearly 70% of the project cost was financed through a loan from the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC), and the interest burden has further added to the financial pressure. “The income generated so far is not enough to cover both construction expenses and loan interest,” he said.
Despite this, D’Souza said that once the finishing work on the first two floors is completed, tenders can be invited to allot shops on those floors. This, he said, could help generate additional revenue and partially ease the financial strain on the project.
Target to complete work before CM’s visit
The MLC said he has instructed officials to ensure that work is completed as quickly as possible so that the building can be dedicated by Chief Minister Siddaramaiah, who is expected to visit the city for the valedictory programme of Karavali Utsava in January.
“Officials have informed me that the contractor’s pending payments can be cleared by January or February using the city corporation’s revenue,” D’Souza said, expressing hope that this would help resume work at a faster pace and bring visible progress on the ground.
Escalation in cost due to technical changes
Naresh P. Shenoy, Deputy Commissioner (Development), said that while the contractor continues to work on the project, funding issues have significantly hindered the pace of construction. He said the estimated cost of the project escalated due to additional works that had to be incorporated after construction began.
“As per the revised zoning regulations, the site falls under Seismic Zone III,” Shenoy said. “This meant that the quantity of steel required for construction increased substantially, leading to higher costs.”
He added that such technical changes were necessary to ensure the structural safety and long-term durability of the building, but they also contributed to delays and budget overruns.
Traders await modern market facility
The prolonged delay has caused frustration among traders, many of whom were expecting a modern, multi-storey market complex with improved facilities and organised commercial space. The project was envisioned as a major upgrade over the old market, offering better hygiene, parking facilities and dedicated spaces for different categories of vendors.
Officials maintain that once a few floors are completed and shops are allotted, the project could gain financial momentum. However, they acknowledged that sustained funding support will be crucial to complete the entire 10-storey structure.
Conclusion
The Kankanady market complex, conceived as a landmark commercial infrastructure project, continues to face delays due to financial constraints and cost escalations. While assurances have been given about completing at least two floors in the near future, the overall progress of the project will depend on timely fund releases, revenue generation through shop allotments and effective coordination between the contractor and civic authorities.