Govt may opt for new developer for Manikonda IT park

The Andhra Pradesh government may initiate a fresh process to choose a new developer for Manikonda IT park at Hyderabad in case Lanco Infratech Private Limited, the highest bidder, delays in paying the bid amount.

According to government sources, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) may give a one-month notice to Lanco before taking alternative steps to find a new developer for the IT park, proposed to be developed in a 108-acre land.

Lanco Infratech, which shot into fame overnight by bidding more than Rs 2 crore per acre for Manikonda IT park failed to pay the mandatory 50 per cent bid amount as a deposit to APIIC even after receiving the allotment letter. Bids were opened in May 2005.

Chief minister Y S Rajasekhara Reddy, who held a review meeting on the progress of new IT parks, instructed the IT&C department to intimate a new time frame to Lanco for compliance with the bid rules and start the process to choose a new developer in case the company fails to respond within the stipulated period.

Though efforts to contact Lanco officials for their views on the issue did not succeed, government officials, however, said they were not optimistic about a positive response from the company.

The rates quoted for the land by Lanco Infratec is considered to be much higher as compared to the current market prices in this area. APIIC has fixed just Rs 60 lakh a acre as the upset price for this park at the time of bidding. And this, the officials feels might be the reason for Lanco "backing out".

Meanwhile, DLF, which came as the second highest bidder for Rayadurg IT park in Hyderabad too has backed out as it had to meet the price quoted by Lanco. Lanco quoted more than Rs 4 crore per acre for this 37.5 acre land. It is said that Divyasree Group has come forward to develop the Rayadurg IT park.

At the meeting, the Government also approved a proposal to develop a Special Economic Zone (SEZ) for software companies in a 2,500 acre area near the Hardware park at Shamshabad International Airport.

Besides, the meeting approved a proposal put up by the state IT&C department to earmark 200 acre Huda(Hyderabad Urban Development Authority) land in Pappalaguda village in Ranga Reddy district for the allotment of land to new IT companies.

It may be recalled that APIIC invited tenders for the proposed three IT parks at Manikonda, Vattinagulapally and Rayadurg, and one in Vizag early this year.

In the present case, Lanco stood as the top most contender across the board. According to the tender rules, a bidder can choose only one IT park in Hyderabad even if he emerges as the successful bidder for more than one project. Accordingly, Lanco chose Manikonda IT park.