Emaar MGF yet to start construction work at Doon, say officials

Emaar MGF's decision to withdraw its IPO may have its impact in Uttarakhand.

The state Tourism Minister Prakash Pant today said he was trying to find out whether the company's IPO withdrawal would affect the on-going Rs 200 crore five star hotel project in Dehra Dun.

Venturing into a Public Private partnership (PPP) in tourism sector, the Uttarakhand government in August last year had signed an agreement with Emaar MGF, a real estate developer, for building the five-star hotel. The hotel, under the brand "Holiday Inn," was to be completed in two years.

However, Tourism officials here admitted that no construction work has yet started on the land provided by the government to MGF. "Except for a survey, no construction activity has yet started," a Tourism official said.

Emaar MGF had tied up with Intercontinental Hotels Group, Singapore, for the management of the hotel and convention centre.

The hotel, which would have 200 guest rooms and the convention centre is part of an integrated facility comprising retail and entertainment space spread across 10 acres of land at Tapkeshwar area of the city.

Infrastructural Development Commissioner and Additional Chief Secretary I K Pandey and Chief Operating Officer, Hospitality, Emaar MCF, Sanjiv Rai had signed the agreement in August last year.

Terming the deal as a big leap for the development of tourism sector in the state, Pant said the government gave 10 acres of land to the company on a lease of 30 years and during this period the company would pay Rs 7 crore to the government every year. When the lease ends after 30 years, the property would be handed over to Uttarakhand Tourism Development Council.

Pant said he would also hold inquiry to find out as to why the construction work on the five start hotel has not started. "Six months have already lapsed since the agreement was signed. It is a matter of concern," said Pant.