‘Ner Chowk may lose mall and hotel project to new site’

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Shimla, July 1

The hotel and mall project that many at Ner Chowk in Mandi believed would bring jobs, investment and new opportunities is facing an uncertain future as the developer considers relocating it after persistent waterlogging made construction at the site increasingly difficult. According to sources familiar with the development, Gurgaon based Mac View Infrabiz Private Limited, which had planned to build a large commercial complex featuring a shopping mall and hotel, is exploring the possibility of seeking alternative land from the Himachal Pradesh government. The move follows the company’s assessment that a groundwater level of just a few feet below the surface makes it difficult to erect large structures. Besides this, the overflow of water from seasonal rivulets (khuds) is also causing problems in the construction of the project.

While it continues to consult leading architects and engineering experts to find a solution, relocation of the project is also being discussed.

The Gurgaon based real estate company was unaware of the site’s groundwater challenges when it acquired the land, sources said. The company paid reasonable compensation for aquiring the land and followed a discipline for making sure all the norms and compliance is given utmost respect as the development is in hills, the sources added. For many residents, the project represented much more than another real estate investment. It was seen as an opportunity to transform Ner Chowk into a commercial destination along the busy Chandigarh Manali corridor and create hundreds of jobs in a region where employment opportunities remain limited. The sources said the project had been conceived to bring modern retail, hospitality and commercial infrastructure to the area while taking advantage of its strategic location on one of north India’s busiest tourist routes. The development was expected to attract business travellers, tourists and transit visitors, creating new opportunities for local businesses and generating an estimated 2,000 direct and indirect jobs. Those expectations have now been overshadowed by engineering challenges.According to officials familiar with the project, the situation worsened after last year’s floods.

Sources within the company said engineers explored multiple solutions to overcome the problem, but they are yet to conclude a solution. The company is now understood to be preparing to approach the state government to seek allocation of another suitable parcel of land so the investment can go ahead elsewhere. If that happens, residents fear Ner Chowk could lose one of the biggest private investments ever planned for the area.
Many local families had hoped the mall and hotel would provide employment for young people who often leave Mandi district in search of work elsewhere. Shopkeepers, transport operators and small businesses were also expecting increased footfall once the project became operational.
“We believed our children would finally find work close to home,” said one resident. “A project like this would have changed the local economy. If it moves somewhere else, we will lose an opportunity that may never return.”
Another resident said unemployment remains one of the region’s biggest challenges and that large private investments are rare. “People were hopeful because hotels, shops and restaurants create jobs for everyone, from skilled professionals to daily wage workers. Losing this project would be a major disappointment.”
The proposed development occupied a strategically important location in Mandi district and was expected to benefit from growing traffic along the Chandigarh Manali highway. Developers who are betting big on this project believed the combination of a hotel, retail space and commercial facilities could establish Ner Chowk as an important stop for tourists and business visitors travelling through Himachal Pradesh. While neither the company nor the state government has made any official announcement regarding relocation of the project, people familiar with the matter said discussions are underway on possible alternatives.

For residents who had pinned their hopes on new jobs and fresh investment, the uncertainty is already taking an emotional toll. Many now worry that if the project leaves Ner Chowk, the town could miss out on a once in a generation opportunity for economic growth and employment.