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20 Firms In The Fray For Kolkata Municipal Corporation (KMC) Bypass Plot

By Sumit Kumar, Section Kolkata Municipal Corporation
Posted on Fri Apr 11, 2008 at 10:11:30 PM EST

Twenty companies have joined the race for bagging the 3.35-acre Kolkata Municipal Corporation (KMC) plot off the Eastern Metropolitan Bypass for putting up a 4-star hotel.

In March, KMC had invited request for proposals (RfPs) for the plot. Friday was the last date for submitting RfPs.

Sources said ITC, Apeejay (which runs The Park), Leela group, Orchid and Forum Projects (belonging to mall & IT park developer Rahul Saraf) are among the firms which have thrown their hats in the ring for securing the KMC plot.

"The interest in the plot is generated by its proximity to Sector V and the complete absence of 4-star hotels in the vicinity which would ensure that occupancies would be high from the start itself," Forum Projects MD Rahul Saraf told TOI.

Existing hotels on the Bypass and those being proposed by the likes of DLF and Emaar in the vicinity are 5-star deluxe hotels and above.

Sources said KMC would hold a pre-bid conference with the 20 firms on Saturday. "As of now, the plan is to have financial bids submitted by April 21 so that the transfer process can be completed quickly," they added. The civic body hopes to earn at least Rs 175-180 crore by auctioning the plot.

Although the KMC had not specified that it wants a 4-star hotel only on the site, industry sources said the land on offer was too small to establish a 5-star deluxe hotel. A 5-star deluxe hotel needs at least 6 acres to be set up, they pointed out.

Sources said that depending on the success of the latest auction, the KMC would take a decision on the timing of other plot auctions. "Apart from this plot, the KMC has several other parcels of land off the Bypass totalling 15-20 acres which, too, would be put on the block," sources said. "In all, the KMC has about 70-80 acres which it is in a position to offer interested parties," they added.

At the last plot auction held by KMC for a patch of land opposite Science City, 55 of the
57 companies, which had originally purchased request documents, had backed out of the bidding process because of the "high reserve price of Rs 275 crore". KMC ultimately had to choose between LIC and Park Hotels for this plot.

Money raised from the present auction will be utilized for funding infrastructure projects which are part of the Jawaharlal Nehru Urban Renewal Mission scheme.

Source:The Times Of India,12-04-08

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