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Shamuka tourism project hits land acquisition roadblock

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Jayajit Dash Kolkata/ Bhubaneswar
Last Updated : Jan 20 2013 | 8:04 PM IST

The Rs 3500-crore Shamuka tourism project billed as the showpiece project of the Orissa government, has hit a major roadblock with the Industrial Infrastructure Development Corporation of Orissa (Idco) yet to transfer even a single acre of land to the Orissa Tourism Development Corporation (OTDC) for executing the project.

"We are yet to make any headway on the Shamuka tourism project as Idco is yet to hand over any land to us. We have taken up the issue with Idco authorities to expedite the process of transfer of land to OTDC so that work on the project can take off at the earliest”, a source in the state tourism department told Business Standard.

Idco, maintained that even though over 900 acres of land has already been acquired for the project, physical possession could not be taken due to spate of litigations over the plot.

"However, we are making efforts to resolve these issues soon”, said a top official of Idco.

It may be noted that Public Interest Litigation (PIL) was filed in the Orissa High Court against land acquisition for the project but the court had not issued any stay order on land acquisition work.

Meanwhile, the state government had decided to set in motion a financial feasibility study for the Shamuka tourism project and rope in a globally reputed consultant for the same.

The state government had invited bids for the selection of a consultant for conducting the financial feasibility study for the Shamuka beach tourism project. Deloitte, Ernst & Young and PricewaterhouseCoopers (PwC) had responded to our tenders and PwC had emerged as the L1 bidder.

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The state tourism department also needed a transaction advisor for implementing the Shamuka beach tourism project and the state Chief Minister had accepted to the request of the department.

The Shamuka tourism project needs around 3000 acres of land in all and the land acquisition is being done in phases. The project is being developed near Sipasarubali, about 10 km south of Puri on the public-private partnership (PPP) mode.

The state government had lined up an investment of Rs 120 crore on external infrastructure like water supply, electricity and roads for the project.

Apart from the four five star hotels, the Shamuka tourism project would have facilities like a convention centre of international standards with a seating capacity of nearly 1,500, an 18-hole golf course, boutique hotels, international spa and wellness centres, an entertainment zone and sports facilities.

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First Published: Mar 08 2011 | 12:06 AM IST

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