The Hindu Business Line : LIC aims to increase income from rented building property

Kolkata, May 23 LIC is eyeing at more than doubling its income from rented building property in the eastern zone to an estimated Rs 50 crore in the next two years, Mr R.R. Dash, Zonal Manager, said here on Friday.

The rental income from LIC’s buildings has increased almost four-fold over the last five years and next year itself the earnings may reach the Rs 30-crore mark, he said. The Corporation had earned Rs 22 crore this financial year from its properties.

LIC has almost 187 property documents in the eastern Zone comprising West Bengal and the states of North East, each property document consisting on an average of four-five buildings. In Kolkata alone, there are 81 buildings under LIC’s ownership including five heritage buildings.

“In the whole stretch of buildings starting from Chandni Chowk’s Gram Udyog Bhavan till Exide every alternative structure belongs to LIC,” an official said.

The corporation also has a sizable kitty of heritage buildings in its name, he added.

The five heritage buildings belonging to LIC are the Metropolitan Building, Queens Mansion, Esplanade Mansion, North British Building (N S Road), and the Ranjani Building (AJC Bose Road). The buildings are rented out for residential as well as commercial usage, said Mr Deb Kumar Banerjee, LIC’s Chief Manager.

However, LIC is currently receiving a rent of only Rs 30-35 per sq ft per month from its residential tenants and only Rs 40-60 as commercial rent, which is much lower than the ongoing market rates, an official said.

“There are actually more than 160 buildings in Kolkata belonging to LIC but many are under litigation and therefore does not attach any rental earning,” he added.

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