Delhi

15 global firms line up to build India’s largest convention centre

 

Nearly 15 global players including Samsung Construction and China Construction are in the fray along with home-grown companies like L&T and Reliance Infrastructure for bagging the contract for constructing India’s largest convention centre.

 

The government has invited the request for proposal by December 8 under the engineering, procurement and construction (EPC) mode after the Rs 26,000 cr International Convention and Expo Centre (IICC) project received the Union cabinet’s nod earlier this month.  The covention centre will come up over 89.72 hectares of land in Dwarka, Delhi and the work is expected to start in January 2018.  Phase I of the project is likely to be completed by December 2019 and Phase II by 2025.

 

The Department of Industrial Policy and Promotion (DIPP) held a pre-bid meeting on November 6 to fathom mood of the market players where the project was able to attract attention of several global players, acknowledge government officials.

 

The EPC contract will be finalised by the end of December this year. It would involve development of trunk infrastructure along with exhibition-cum-convention centre and internal road network system, and underground car parking facilities. The centre will be operated and managed by experienced global players who are expected to provide facilities at par with the best in the industry worldwide. Several international exhibition organisers from Germany, Singapore, Australia, Hong Kong and Dubai have shown interest in operating the IICC. 

 

The government has planned the IICC as an international brand to promote growth and development of India’s trade and commerce. The place will be used for hosting national and international events such as multilateral summits, trade fairs, conferences and conventions to further our cause.

 

The proposed business district includes a 230,000 square metre exhibition and convention space, 275,000 sq metres of hotel space and 375,000 sq metres of commercial retail entertainment and offices. 

 

The components comprising hotels, retail space and offices will be implemented in public-private partnership mode. The government expects footfall of more than 10 million after Phase-I and 23 million after the completion of Phase-II in 2025. The project is estimated to generate more than 500,000 direct and indirect employment opportunities.

 

The Cabinet had approved creation of a special purpose vehicle (SPV) for the implementation of the project with 100% equity from the government through the DIPP. The government will provide Rs 2,037 cr to the SPV over a period of three years to fund trunk infrastructure. The SPV will be authorised to raise debt or mobilise resources through land monetisation depending on market conditions.
 

Written by The Realty Paper


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