"I have given up all hopes to see the privatisation of multi-crore multi-storey building in prime business locality of Indore," a cabinet rank minister told Business Standard.
"The bureaucracy is dominating the issue. By one reason or the other, they put the process of privatisation on the back burner at each attempt," the minister said.
Even after almost one year of announcement of awarding SEZ status to Crystal IT Park at Indore, the state government has yet not been able to take a final decision on its privatisation. Even after one-and-a-half-year of the completion of the building, no software company has come forward to pick even a square foot in the park. The 550,000 sq ft building bears a gloomy look.
"I had invited two big players, who had almost finalised their plans to acquire the building, but our bureaucrats have different attitude. They just linger on," rued the minister.
With an investment of Rs 44 crore (total proposed investment was Rs 80 crore), the building at prime locality of Bhanwarkuan near Indore University has failed to attract even local IT companies. During 2006, Audyogik Kendra Vikas Nigam, Indore, the nodal agency for marketing the IT Park, had made efforts to join hands with Tata Consultancy Service (TCS), Wipro, SKIL and Infosys.
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However, the industry sources put a plausible reason. An industry source based in Indore said, "The valuation of the building and a 23-acre plot in the vicinity are the main reason for delay. While the total cost of the IT park should be around Rs 150 crore, the park is under valued at Rs 60 crore. Eventually, the building will be demolished as there is a problem in its design as well. It was deliberately altered so that the prime land could be taken over by the local real-estate players."
There were reports that the original design of the building of two stories at basement and eight stories above it had been altered to one (basement) plus nine, thereby incurring additional expenses to the state.
However, bureaucrats have a different story to tell. "The building is under litigation; the developer has sued the government against a penal action. How can bureaucrats shortlist the bidders? Who will be responsible if the complainant wins?" asked a senior official involved in the privatisation process of the park.