Eleven wonders: Big push for tourism projects

By SNV Sudhir

Visakhapatnam, Jan 10, 2014: In a welcome move which can change the face of Vizag as tourists’ destination, the state government had finally agreed to a revenue sharing mode in launching various tourism projects that were proposed long back and then pushed into cans.

It was reported in these columns earlier that the policy of state tourism department to entrust the projects to private players on lease basis instead of Hyderabad model of revenue sharing, had discouraged many potential private parties to take up the projects.

The state GoM on tourism promotion, which met recently, gave in principle nod for revenue sharing mode. Fresh bids will be called in this month and the agreements with the private parties will be signed by March 31. 

The consultant appointed by the Centre and the state government, Infrastructure Leasing & Financial Services Limited (IL&FS) prepared more than 11 Detailed Project Reports (DPR), two years back and 29 firms responded to the global expression of interests called last year for five of the DPRs. However, none came forward to sign the agreements with the state government to kick start the works.

After identifying the city’s tourism potential and its rich natural resources, the union government in 2011 entrusted the job of preparing a blue print of ‘attractions’ to be set up in Vizag to India's leading infrastructure development and finance firm, IL&FS.

The IL & FS officials have prepared DPRs for around 11 mega tourism projects at a cost of Rs 1,800 cr. Of the 11, around 5 projects at a cost of Rs 850 cr were approved in principle by the union tourism ministry.

Global tenders were also called for 5 projects. Around 29 submitted their technical and financial bids, out of which, 28 were qualified. The tourism department had also finalised the tenders after receiving request of proposals from the successful qualified bidders.  But no firm has evinced interest in signing the agreements after looking into the actual modalities of handling the project.

The state government had fixed the land price at Rs 4 crs per acre and asked the successful bidders to pay 5 percent of the price as an annual lease amount per acre. The lease policy has discouraged the potential bidders.

The IL & FS has recently written to the state government to review the policy to attract investors.

“The GoM has given its nod to revenue sharing mode. We will very soon begin the bidding process again probably by this month. The agreements are expected to be signed by March 31 and subsequently works will begin,” IL & FS, vice president and south head, S Srinivas told this correspondent.

The 5 DPRs belonged to Multi Theme Park at Madhurawada in 100 acres, Wonders of the world park at Yendada in 40 acres, international convention centre at Madhurawada in 20 acres, science city near Thotlakonda in 25 acres and Arogyadham-traditional health care centre at Madhurawada in 20 acres.

The remaining 6 projects are giant Ferris wheel, Vizag Eye, on the lines of London Eye,  fourth generation aqua Marine Park with 180degree view, for which a suitable location is identified at Endada, a sea cruise terminal, dedicated tourism train to Araku, rope way at
Meghadrigedda and another theme park. All the works would be taken up under PPP mode.