DLF to build convention centre in Goa

DLF Limited, Asia's real estate and construction giant, DLF Limited, has bagged the Goa government tender to construct a 4,500-seater state-of-the-art convention centre and a 350-room capacity five star hotel, here at Dona Paula.

The total project would come up on a 25-acre land and it would be implemented on 'build operate and transfer basis' and the ownership would be transferred to the state government at the end of 30 years period.

It will also have a state-of-the-art mall, well-equipped gymnasium and other amenities.

As per the conditions applied by the Goa government, the entire project should be completed in 18 months. "The convention centre will have to be completed in 18 months," Chief Secretary, J P Singh told Business Standard.

Altogether six firms had submitted their technical and financial bids. However, only five companies were left in the fray after preliminary scrutiny.

The DLF Limited was the highest bidder (pleading the amount to the state government) from the five contestants with Rs 161 crore. The second highest bidder was a consortium of Salgaonkar-Marriott, which had offered Rs 137 crore to the government.

Pratapsinh Rane, chief minister of Goa informed that the successful bidder would make an upfront payment of Rs 161 crore to the state government and that the project was to be completed at a cost of additional amount of Rs 400 crore.

"The DLF would pay five per cent of its annual revenue to the government after five years of setting-up the project and continue to pay for the next 25 years," Rane said.

According to him, the new convention centre would be used for all kinds of conventions, including the prestigious International Film Festival of India (IFFI) and other various exhibitions. "We will also resolve the dispute of land with the Goa University," the Chief Minister maintained.

The Public Private Participation (PPP) project on 25 acres of land is under dispute, with a petition filed by teachers of the Goa University objecting to the government's plans to take away its land.

However, the Panaji bench of Bombay High Court recently allowed the government to go ahead with the tender process until further orders.