The state government will set up an Andhra Pradesh International Centre at AP Bhavan in New Delhi. A decision to this effect was taken by the Cabinet on Monday.
The new facility will be complete with an international convention centre, guest house with five-star facilities, club houses, residential quarters, hostel and dormitory facilities and service apartments. These will come up on 19.8 acre at an estimated cost of Rs 1,000 crore.
The project, for which Incap is the executing agency, will be developed by the consortium of Nagarjuna Construction Company and NCC Infra Holdings Limited (Hyderabad) under public-private partnership.
It will be on a build, operate and transfer (BOT) basis for 30 years excluding two years of construction period and another six months for achieving financial closure and various clearances.
The state government will not make any financial contribution to the project, according to information and public relations minister Anam Ramnaryana Reddy.
Though bid documents were issued to 10 prequalified bidders, only two agencies – Parsvanath Developers Limited (New Delhi) and the Nagarjuna Construction consortium – submitted the bids.
The Nagarjuna consortium, which offered a revenue sharing of 12.34 per cent to the government, compared with the 6.11 per cent that Parsvanath offered. At the end of the licence period, the government will retain the land along with the developed structures.
The Nagarjuna consortium is required to pay the Andhra Pradesh government an annual minimum guaranteed amount of Rs 45 crore during the first 10 years of commercial operations, Rs 60 crore during the next 10 years and Rs 75 crore during the last 10 years.
