State picks Mahindra group to develop Belur hotel project

KPIDC, which had invited Expressions of Interest (EoI) for the Rs 30 crore project to come up on a seven-acre plot in Chikkabadgere Village, in Hassan District, located on State Highway-57 enroute to Chikmagalur, has awared it to Mahindra Resorts as successful bidder.

Official sources told Deccan Herald that the company is expected to float a special purpose vehicle (SPV) shortly for the project which is holding talks with financial institutions to seek their nod before financial closure on the project.

Sources said, the project which will come up on Design-Build-Operate-Transfer (DBOT) basis, for which the State government will provide necessary land on 30-year lease, will also boast of a theme park, retail and civic amenities.

Belur is among several destinations been identified as part of Circuit Development Projects by Jones Lang LaSalle Meghraj in their Project Identification Study for development of tourism infrastructure projects in the State.

Tax sops
KPIDC, as nodal agency and project advisor, proposed similar projects at Jog & Banavasi, Agumbe and Pattadakal near Bijapur, besides Belur. The Belur project, will also receive tax exemptions and sops including clearances under Zone 4 of the State Tourism Policy.

While, the project initial rate of return is projected at 26 per cent, the equity initial rate of return has been worked at 23 per cent. KPIDC is looking into over 20 projects in various infrastructure development initiatives.