The Vijayawada Municipal Corporation (VMC) is contemplating constructing “a business class budget hotel” in the city shortly. The corporation officials have identified a land of about 2,000 square yards at Brindavan Colony in Labbipet.
The proposed hotel would be taken up on Build Own Transfer (BoT) basis. The Corporation officials feel that the hotel should be of three-star category and have 100 to 150 rooms, and estimated to cost around Rs. 20 crore to Rs. 25 crore.
The VMC would avail the services of Apitco, a consultancy, for bid process management services. It would have to identify the eligible firm for taking up the project. The eligible firm would have to prepare the project report, and execute the projects in a feasible manner. “This is first time in the State that a Municipal Corporation is constructing a budget hotel for the convenience of the public,” says Municipal Commissioner G. Ravi Babu.
The Municipal Corporation has two pieces of land at Brindavan Colony. A few dilapidated staff quarters of VMC's officers are located on the two pieces of lands. The VMC took up housing in one bit of land in a private public partnership (PPP) mode. And, in another piece of land, which is opposite to it, the Corporation proposed to construct an institutional tower for IT companies and small time BPO firms. The Corporation estimated that it would get Rs.5 crore to Rs. 6 crore annually from the institutional tower. But, none of the firms evinced interest in developing institutional tower.
Subsequently, the VMC planned to construct a budget hotel in view of growing demand in hospitality industry.
The Brindavan Colony always hit the headlines as the land is very close to M.G. (Bandar) Road. The opposition parties have been alleging that the Corporation handed over the land to private companies at a throwaway price.
