Idco to scrap land deal with Bharat Biotech

Bharat Biotech was to develop a biotech park at a cost of Rs 100 crore

Odisha Industrial Infrastructure Development Corporation (Idco), the state's nodal agency for land acquisition, has decided to call back the land leased to Hyderabad-based Bharat Biotech International Ltd for development of a biotech park.

Bharat Biotech was to develop the biotech park at Andharua on the outskirts of the city at a cost of Rs 100 crore.

Though Idco had alloted 65 acres land to the company November 2013, there is no trace of construction activity at the project site.

“As per the timeline, you had agreed to commence the site work by January 10, 2014 and complete 25 per cent of the ground infrastructure by July 4, 2014. But during joint field inspection on July 21, 2014 to the work site, it was observed that no ground infrastructure has been taken up. As such, we are constrained to issue this notice of intention to terminate the agreement as per Article 33.3 (a) of LDA (land development agreement)”, Idco's chairman cum managing director Vishal Dev wrote to CMD of Bharat Biotech International Ltd.

The notice to Bharat Biotech to terminate the LDA follows Idco's earlier letter on June 19 this year which went unanswered.

“Such non-responsive and non-serious attitude of the company in developing the project has been a big disappointment to Idco. I therefore urge your urgent personal intervention in the matter to meet the milestones. As time is the essence of contract, we shall be constrained to initiate necessary action, in the event construction activities do not commence within 30 days and the milestones are not achieved as per the contract”, said the previous letter by the Idco CMD.

The proposed biotech park has been identified as one of the flagship projects of the state government. To expedite the approval and land leasing process, the state government, on request of Idco, had transferred the project from the department of science & technology to Idco.

The biotech park, called Konark Knowledge Park, is the first of its kind venture to be developed on the public private partnership (PPP) mode in the state in the field of science and technology. It is an integrated industrial park to attract and promote industries in biotechnology, pharmaceuticals and IT.

The park was to have a Biotechnology Incubation Centre spread over 10 acres. The incubation centre to be built within the park was designed to cater to the needs of the researchers, entrepreneurs and students.