The fate of the Rs 1000-crore DLF Infopark project which has been mired in uncertainty ever since its launch in February last year, now hinges on the state government's approval to the revised project plan submitted by the real estate player.
Following the de-notification of the SEZ (Special Economic Zone) status, DLF, India's biggest real estate firm, had announced to develop the project under the STPI (Software Technology Parks of India) scheme.
Subsequently, it had submitted a revised proposal to the Industrial Infrastructure Development Corporation of Orissa (Idco) seeking approval for leaving out bigger area of the project for non-processing facilities like shopping malls and multiplexes to ensure the project's commercial viability.
“We had a recent meeting with the DLF authorities on the progress of the Infopark project. DLF which had submitted a revised proposal to Idco wants the new proposal to be approved before start of the construction work. Idco will soon submit DLF's revised proposal to the state government which will take a final call on the matter”, Priyabrata Pattnaik, chairman and managing director, Idco told Business Standard.
DLF is keen on taking advantage of the revised FAR (Floor Area Ratio) norms for IT office space so that it can earmark greater space for commercial development, he stated.
According to the latest building norms notified by the Bhubaneswar Development Authority (BDA) in December 2008, the FAR for IT office space was raised from 2.5 to 2.75.
DLF had gone slow on construction work due to the slackening demand for IT projects in the country in the backdrop of the economic downturn.
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The DLF Infopark project which was to be developed in three phases, comprises an IT block, a luxury hotel, a retail chain, service apartments and recreational facilities with a total built-up space of about 5.5 million sq ft.
For setting up the luxury hotel, DLF had tied up with Hilton, an international hotel chain.
In the first phase, DLF had committed an investment of Rs 300 crore for developing an IT workspace of international standards with a built-up area of 5.7 lakh sq ft.
The first phase was scheduled to be operational within eighteen months to two years after commencement of construction work.
The Infopark project was to generate direct and indirect employment opportunities for over 40,000 people in sectors like IT and ITes (IT enabled services), retail and hospitality.