The state government has cancelled the Rs 1,000-crore Andhra Pradesh International Centre project, a multi-utility complex at the AP Bhavan premises in New Delhi, given to Nagarjuna Construction Company.
The project was cancelled as Nagarjuna Construction Company-NCC Infrastructure Holdings consortium failed to execute the development agreement (DA) as well as licence agreement (LA) even after expiry of the 75-day deadline. The consortium also failed to submit performance security of Rs 100 crore before the execution of DA and LA, according to infrastructure secretary Manmohan Singh.
The Andhra government proposed to take up the project in public-private partnership on a build-operate-transfer basis. It envisaged to set up an international convention centre, guesthouse, residential quarters, hostel and dormitory facilities for government use, and service apartments on 19.84 acres at AP Bhavan.
The consortium was also required to pay Rs 25 crore towards project development expenses but had paid only Rs 5 crore so far, he pointed out. The consortium sought an extension of time by another 60 days but did not give any reason for not fulfiling the contractual obligations.
Infrastructure Corporation of Andhra Pradesh Limited, the project executing agency, vice-chairman and managing director KV Reddy recommended the cancellation of the project and orders to this effect were issued today.
The developer was required to pay an annual minimum guarantee amount of Rs 45 crore during the first 10 years from commercial operation, Rs 60 crore during the next 10 years and Rs 75 crore during the last 10 years of the 30-year licence period.
NCC officials could not be reached for comments.
