AMC allots Thaltej plots worth ₹225 crore to two nurseries rent-free for 10 years

The Amdavad Municipal Corporation (AMC) has leased two municipal plots in Thaltej, together estimated to be worth about ₹225 crore, to two private nurseries rent-free for 10 years.

Land prices in the area are estimated at around ₹2.5 lakh per square yard. Despite this, the corporation will not receive any rental income during the agreement period. The allotments were approved shortly before the end of the AMC’s 2021–2026 term, and the land has already been handed over for the development of high-tech nurseries under a public–private partnership (PPP) model. 

The civic body’s decision to give up a potential source of income as well as the timing of the move have drawn public scrutiny.

Plots allotted under town planning schemes

According to the proposal, a plot under Town Planning Scheme (TP) No. 37 in Thaltej ward—Final Plot No. 206—measuring 8,821 sq m (approximately 10,500 square yards) has been allotted to Fresh Bloom Nursery.

Another plot under TP Scheme No. 39—Final Plot No. 53— measuring between approximately 3,000 and 5,000 square yards has been allotted for the same purpose.

The space for setting up high-tech smart nurseries has been given to Nebari Bonsai Gallery, operated by Hina Manan Zariwala, and Fresh Bloom Nursery.

 Approved by recreation committee without opposition

The proposal was cleared by the AMC’s Recreation Committee and subsequently approved without recorded opposition.

 Notably, neither ruling party members nor the opposition raised objections during the approval process, despite the potential loss of revenue to the civic body.

The decision has also attracted attention because even small municipal facilities—such as parking spaces—are typically allotted on an annual upset value, or minimum fixed fee, with operators paying charges to the corporation. In contrast, the nursery plots have reportedly been given rent-free for a decade.

Revenue implications

Under the agreement, the AMC will not receive rent from the plots. Instead, the corporation will receive up to 25% of the plants produced by the nurseries.

If the civic body does not take its share of saplings, the nurseries are free to sell them in the open market. 

Another provision allows the size of the allotted area to be altered in the future.

Further, the agreement also includes a clause allowing the tenure to be extended beyond the initial 10-year period. Critics argue that the condition could further limit the civic body’s ability to derive financial benefit from the land in the future.

With property values in Thaltej continuing to rise, the value of the plots is expected to increase significantly over the next decade, raising questions about the corporation’s financial return from the land.