With the architectural consultant presenting the Master Plan, in collaboration with its international counterparts, for the Information Technology (IT) city proposed at Madhurawada, the Visakhapatnam Metropolitan Region Development Authority (VMRDA) is weighing options over the development model to be adopted for the project.
The Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML), a joint venture of the State government and IL&FS, is now vetting the Master Plan for the IT City project.
The IT City is proposed to be set up in 20 acres with an IT tower as well as other matching infrastructure such as malls, hotels, multiplex and etc. Initially, it is proposed to create 5 lakh sft of space for IT industries.
However, with its request for 100 % reimbursement of rent being turned down, the VMRDA has made it clear that it would not make any investment in the IT City project and the developer has to arrange for the entire investment.
Stating that it had entered into an MoU with the State government only after special provisions were promised, the VMRDA wanted 100 % rent reimbursement for the vacant space instead of the limited 50% for five years because it’s a government organisation. But, the request was turned down twice by the relevant committee in the IT Department.
Investment matters
“Consequently, we have made it clear that the entire investment has to be brought in by the developer,” says VMRDA Commissioner P. Basanth Kumar.
Further, its proposal for setting up a Special Purpose Vehicle (SPV) for the project was also rejected. However, the VMRDA pressed for approval saying that the Act also had provisions for it. Now, the proposal has been approved and awaits the clearance of Chief Minister N. Chandrababu Naidu.
With the experience of handling the Haritha Housing Project, the VMRDA is insisting on an SPV to limit its liability. It has also roped in the APUIAML, a joint venture of the State government and IL&FS, for the IT City project.
Meanwhile, it is learnt that an investor is ready to set up a five-star hotel and the Chief Minister wants the tender process to be completed in a month.
Master plan ready
With the Master Plan ready, foreign investors are showing a keen interest and delegations are likely to visit in the next few weeks. “The VMRDA has put forth several development models including the one on PPP mode,” says Mr. Basanth Kumar.
It is also learnt that around 200 small investors have also come forward for a credibility check.
