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The consortium will pay another 25 per cent or about Rs 1,700 crore by December when the Detailed Project Report would be ready and the remaining 50 per cent in the next two years.

The consortium, which also consists of Nagarjuna Construction Company and ICICI, signed a development agreement with Hyderabad Urban Development Authority (Huda) and the State Support Agreement with the Infrastructure and Investment department (I&I) here.

There was also a tripartite agreement between I&I, Huda and Ramky Infrastructure for developing the Srinagar Township. This will be the first real estate venture taken up in the true spirit of Public Private Partnership wherein land owners are 40 per cent stake holders in the company that will develop the township.

A senior official said that the group had successfully lobbied with the government to convert the project into PPP mode. In the process, Huda will get a premium of Rs 100 crores on the project. As per the MoU, the land will be converted as 40 per cent equity and for the remaining 60 per cent equity, which involves construction cost, the government will adopt Swiss Challenge Method.

“The government is likely to fix the floor price of Rs 340 crores and ask other bidders to quote. The Ramky group will be asked to match the highest bid to get the remaining 60 per cent,” the official said.

The consortium’s special purpose vehicle, Tellapur Technocity (P) Ltd. has engaged internationally renowned planning and architectural firm Pei Cobb Freed & Partners LLP, along with Vastu Shilpa Consultants, to design the township.

The project, which is expected to be completed in eight years, will include more than 30 million square feet of Class A commercial, residential and mixed-use space.

SOURCES:
Deccan Chronicle

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