BDA's tender to rebuild complex gets poor response

BDA's tender to rebuild complex gets poor response

The BDA finds itself in a tight spot as it has failed to find bidders to rebuild its complex in Indiranagar even after floating tender thrice.

Its third attempt has managed to attract two applications, one of which has a political backing.

The Bangalore Development Authority (BDA) had invited tenders to rebuild the dilapidated Indiranagar BDA Complex under public-private-partnership (PPP) first on March 24, 2015. It was cancelled as no bidders submitted the area-sharing statement.

It again floated tenders for the second time on January 5, 2016. Now, it got only one application. But this time, the bidder cancelled the proposal citing the National Green Tribunal buffer zone regulation of 50 metres around stormwater drains as the reason.

On August 23, 2017, the agency again invited the tenders and got the response from two applicants - MFAR Developers Limited and a joint venture by Maverick Holdings and Investments Private Limited; and Embassy Property Developments Private Limited. Interestingly, Bengaluru Development Minister K J George has stakes in the Embassy Group.

The BDA sources told DH that since the third attempt also got a poor response, it was brought to the notice of minister George, who promised to look into the matter.

"Seems like people have lost their faith in the BDA, which is why the response to the tenders has been poor. We have also been getting a poor response for our housing projects," said an official seeking anonymity.

On Wednesday, Embassy Group released a press statement quoting Jitu Virwani, Chairman and Managing Director, Embassy Group, stating that Maverick and Embassy will form a special purpose vehicle to develop the complex once the project was awarded. It also mentioned that the Maverick was technically and the Embassy was financially qualified for the project.

However, BDA Commissioner Rakesh Singh, in a press release on Thursday clarified that the tenders were not yet finalised and the matter was still under consideration.

Built in 1980, the Indiranagar BDA complex is spread across 6.03 acres and has a built-up area of 14.95 lakh sqft and houses 165 tenants. The tenants will have to be relocated until the 37-year-old complex was rebuilt.

The authority has estimated around Rs 2 crore annual current revenue potential from the complex.

Since the complex stands on a civic amenity site, it cannot be sold or alienated to anyone. So the BDA has decided to lease it for 30 years to a bidder under the PPP model according to the BDA civic amenity site rules.

The BDA has estimated the project cost to be around Rs 657 crore.

DH News Service

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