Andhra Govt To Cash In On Prime Real Estate; Andhra Bhavan To Be Converted To Convention Center

October 11, 2008	(Be the first to rate this story!)  Loading ...
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The Andhra Pradesh Govt will be converting the 20 acre land in the Lutyen Bungalow Zone (LBZ), which includes Andhra Bhavan, Pataudi House and Old Nursing Home to AP International Convention Centre, which the government claims is a move towards `efficient use of land’ and a `gift of AP government’ to Delhiites. The Rs 1,000 crore project, for which the government issued the letter of award to a consortium led by Nagarjuna Construction Company Ltd recently, will have a five-star hotel, an international convention centre, a guest house, cottages for the Governor and chief minister and corporates, an auditorium, residential quarters and besides other buildings for official establishments.

However, here is a breather for Delhiites. During the construction period, services in the cafeteria serving Andhra food would not be interrupted. “Since there will be phase-wise development, the facility will be shifted from one place to other. Moreover, even after the completion of the real estate project the food would be served at subsidized rate. We will have total control over 3.95 lakh sq ft of built up area. We are aware how our food is popular among Delhiites,'’ K V Reddy, vice-chairman and managing director of Infrastructure Corporation of Andhra Pradesh (INCAP) said.

Government officials said that the massive complex on private public partnership (PPP) will be developed in the `institutional area’ on the lines of India Habitat Centre (IHC). They added the objective behind the project is to cater to the office space and increasing demand of main events. The complex to be built up in conformity to the building by-laws applicable in the LBZ will have nine lakh feet of built up area. Officials claimed that the entire complex would emerge as a land mark green building. The first phase of development would start with the Pataudi House. Reddy claimed the total land belongs to the state government and the ownership will always remain with it. He said Pataudi House was given to the state government in the lieu of handing over of the ownership of Hyderabad House to the Central government. “The developer gets 30 years as concession period. The project has been awarded on revenue sharing basis. The developer has got only 30 months from the date of award of the project, which includes six months for financial closure and to get all necessary clearances,'’ Reddy said.

Besides annual revenue sharing in a bracket of every 10 years, the state government will also get Rs 1,800 crores from the developer. He further added they were hopeful of getting at least 40 corporate cottages and guest house ready by 2010 Commonwealth Games. “Once the project is completed we will have more space for all our needs including a bigger cafeteria with more sitting capacity where people dont have to wait for their turn. The auditorium will also be used to screen Telugu movies,'’ Reddy said.

News Published Under:   Real Estate India |

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