New Delhi, April 18, 2008
~GoMP engaged India Infrastructure Initiative (Triple - I) as Project Advisors~
The Government of Madhya Pradesh (GoMP) today awarded Gammon India Limited with the South TT Nagar, Bhopal project to develop fifteen acres of land into a landmark commercial development. The development agreement for this project was signed between Mr. R. K. Swain, Commissioner, Housing Board, Mr. R. K. Mathur, Collector, Bhopal and Gammon’s Director Mr. Virag Gupta at Bhopal. The GoMP had engaged the India Infrastructure Initiative facility (Triple-I) of IDFC and Feedback Ventures as Project Advisors for selection of the developer for the project. This project also marks Triple I’s successful completion of the mandate to advise GoMP on the project.
Gammon was selected after putting in highest bid of Rs. 338 crore for the fifteen acres of land at South TT Nagar. This is the highest price paid for Government land in Bhopal.
Under the development agreement signed between the Parties, the land will be given on lease for thirty years for construction of retail and office space, multiplex, hotel, and other commercial development with ancillary residential development. The total investment in the project is envisaged to be over Rs. 800 crore, which is expected to bring international quality development to the state capital, Bhopal.
The development of this strategically located land had been pending for many years. The State Government under the leadership of Chief Minister, Mr. Shivraj Singh Chauhan had taken this up on a priority basis and constituted a high-powered committee under the chairmanship of the Chief Secretary. The Housing Board was nominated as the nodal implementation agency. To ensure complete transparency in the process, State Government engaged IDFC under their Triple-I facility to handle the selection process.
The decision to award the project to Gammon India Limited was taken at the meeting of the State Cabinet held on March 27, 2008 in the presence of Mr. Jayant Mallaya, Minister of Housing and Environment and chaired by the Honorable Chief Minister.
A PIL against the project filed by an NGO in Jabalpur High Court was dismissed by the Divisional Bench headed by Honorable Chief Justice last week.
Government officials said that this agreement signifies a big success for the Re-densification Scheme of the Government of MP and this project will be a role-model for many more projects to come up under this Scheme. MP Housing Board was the nodal agency for implementation of this Project and will be the Project Management Agency during the implementation period of the project.
“Signing of this project signifies ushering in of the PPP (Public Private Partnership) era in the State of Madhya Pradesh in urban redevelopment space,” said Mr. Suresh Kumar, Chief Operating Officer of India Infrastructure Initiative, Advisors to GoMP for the Project. “This surely will provide a boost to the investment by private sector in the infrastructure development, as has been the objective of the Global Investors Summit held by the Government last year at Indore,” he added.
“Gammon’s first project in the country was Gateway of India and Gammon is committed to make this Project as Gateway of Bhopal”, said Mr. Virag Gupta, Director, Gammon Realty Limited. He added that CBD Bhopal will be developed as a destination for high quality retail, amusement and hospitality—at par with international standards.
About Triple-I: The India Infrastructure Initiative offers a “no-cost” solution to the Governments or Government Undertakings to handhold them through the process of project preparation and partner selection for the identified infrastructure projects. For its services to create a pool of bankable infrastructure projects, III does not charge the Government or Government agencies and instead recovers its costs from the selected private sector partners for the projects, thus creating a win-win situation for all concerned. Triple-I is a trust created by IDFC and Feedback Ventures.
Triple-I is already executing projects worth Rs. 7,000 crore for the states of Gujarat, Maharashtra, Madhya Pradesh, and Uttar Pradesh.
About IDFC: Incorporated in 1997 by the Government of India, IDFC is a specialized financial intermediary for infrastructure. IDFC’s mission is to lead private capital to commercially viable infrastructure projects and to be the financier of choice for infrastructure projects. With a balance sheet of Rs. 20,000 crore, IDFC combines strong financing, policy, and reform capabilities to carry out its mandate and is the leading player to enable infrastructure through PPP in the country.
About Feedback Ventures: Feedback Ventures is India’s leading integrated infrastructure services company, with a mission of “Making Infrastructure Happen”. Totally focused on infrastructure development, Feedback Ventures offers an integrated suite of services that covers all the steps from “concept to commissioning”. Over the years, Feedback has become known both for its innovative work as well as for its ability to ensure successful implementation of infrastructure projects.
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