Essel Group seeks sops for Rs 80 cr MP project

Subhash Chadra promoted Essel World's proposal to set up an amusement and water park in Bhopal with an investment of Rs 80 crore is still hanging in balance.

The company, according to government sources, has demanded more sops and concessions for the project.

Pan India Paryatan Ltd, an arm of Essel Group, had last year initiated the process of acquiring land area. Last year, top company executives had visited Bhopal and discussed their plan.

The state government acquired a land area of 50 acres near Khudaganj near National Judicial Academy at approximately Rs 4 crore for a lease period of 30 years. The state government had also fixed a monthly rental for the company.

"The company has been allocated a land area of 50 acre. But they are demanding more concession and sops," a highly placed source in state industry department told BS and added, "we have extended support according to industry policy."

The company official could not be contacted. The company had reportedly deposited the necessary amount for land acquisition but for Pan India, according to government source, a major portion of investment in land acquisition may make the project unviable since the company is interested in putting tickets rate for the park as low as possible.

Essel Group had also reportedly proposal to set new multiplexes all over the state (at least in twenty districts) with an investment of Rs 200 crore approximately. The company has yet to make formal announcement regarding amusement park, water kingdom (water park) and multiplexes.

"The company had plans to develop three-screen multiplexes at 25 places in the state. The company through its arm Pan India Paryatan's (PIP) ventures in Mumbai - Esselworld, the city's first amusement park started in 1989 and Water Kingdom started in 1998.

Bhopal has high potential for amusement industry. The number of cinemas has also dwindled due to higher tax rates and entry of cable network. But in absence of social gatherings, clubs and poor purchase power the state does not have international quality entertainment facility.

Moreover, state government considers Pan India's proposal under industrial activity as a result promoters like Pan India lose interest.

Even after having long discussions with industry chambers to amend its policy the state government has yet not sought any suggestion from entertainment industry.