AP seeks EoI to build Vizag IT hub under PPP mode

Visakhapatnam: ANDHRA Pradesh Industrial Infrastructure Corporation (APIIC) has sought Expression of Interest from interested parties to develop, operate and maintain a business district in Visakhapatnam, through public, private and partnership mode.

Visakhapatnam, the largest city in the State is being developed as the executive capital. A land parcel of 19 acres in Hill No. 3 of Madhurawada has been earmarked for the project. The area proposed for the business district is also popular as Rushikonda IT hub, where projects have come up in SEZ and non-SEZ areas. Rama Naidu Film City is also close by. All the hillocks in the area have the panoramic view of the Bay of Bengal. Key buildings as part of the executive capital are also likely to come up in the area. ."Our government will create an international business hub in Vizag to attract the best IT/ITeS and financial services MNCs to start operations in a business-friendly environment in the port city." Industries and IT Minister Mekapati Goutham Reddy said in a tweet on Tuesday. He said the project includes business towers, hotels and facilities for MICE (Meetings, Incentives, Conferences and Exhibitions).

A Special Purpose Vehicle will be formed to finalise equity of 74 per cent to the private partner. June 25 is the last date for issuing of EoI applications. The pre-bidding EoI meeting is proposed on June 29. The last date for submission of bids is July 19.

As per the EoI notification, the developer may establish/run/operate/ provide following project components: Core components like IT/ITeS offices/commercial office space, business centre, auxiliary or support components like facilities for MICE, star category hotel/serviced apartments, open air theatre, food & beverages facilities and adequate parking spaces.

According to APIIC, the bid parameter for selection of developer/JV partner will be the highest value quoted towards land price. Out of the highest quoted bid amount, Rs 78 crore will be considered equity (i.e. 26 per cent) in the project and balance amount will be paid by the developer/JV partner.

During the TDP regime, a Signature Tower was proposed in the same area. The project mooted in 21.7 acres acquired from an IT company following its failure to use the land and provide jobs as per the allotment norms, was shelved due to lukewarm response from any bidder to construct the super-structure. It was touted to be better than iconic tower the Cyber Towers of Madhapur by then Chief Minister N. Chandrababu Naidu.

After the change in government, the APIIC declared that it has decided to develop a knowledge park in 300 acres in Hill No. 4 of Madhurawada close to the IT hub of Rushikonda. Data park and business centre by Adani Enterprises Ltd, an industries enablement centre, Sentinel Towers, an industries enablement centre and high-end guesthouse are proposed in the park. As part of the park, 10 acres is earmarked for industries enablement centre, Sentinel Towers and the guest house.