The Hindu Business Line : Karnataka Govt begins acquiring land for apparel park

THE Karnataka Industrial Area Development Authority (KIADB) has started acquiring portions of 187-acre in Doddaballapur for the proposed apparel park.

A meeting on final selection of the different consultants for various stages of the project will be held this week, paving the way for the take-off of the much-delayed project, government sources said.

"The delay in the process could have well resulted in cost over-runs," sources added. However, they did not detail how much extra the government has to bear due to the prolonged procedural hazards. The government had already hiked the project cost to Rs 32 crore last year from original plan of Rs 20 crore.

Though the Government had received several proposals from foreign as well as domestic prospects for joint venture and technical consultancy for the proposed apparel park, no decision on joint venture partner has been taken yet. "Several firms based in UK and Singapore have submitted their proposals through their India representative... the foreign interest is very positive," sources added.

The project is likely to be implemented on a build-own-operate basis. The new venture partner is expected to build and maintain the infrastructure of the park and will be responsible for the operations of the park.

The project is likely to be implemented by a special purpose vehicle (SPV), in which the private partner is likely to pick up equity stake, government officials said.

However, the details of the proposed SPV, how much stake the partner is likely to pick up are being finalised.

The Centre is likely to contribute Rs 17 crore towards the project, while the rest is likely to be shared by the State Government and the venture partner.

The Central contribution will be Rs 10 crore towards infrastructure, Rs 5 crore to set up an effluent treatment plant while the remaining Rs 2 crore will be towards training.

The State Government will chip in with Rs 10 crore and has already started to acquire land for the project, which is estimated to be span across 180 acre.

Karnataka Industrial Area Development Board, which is acquiring land on government's behalf has already been paid Rs 2 crore for the acquisitions till-date.

However, the recent thrust towards the Doddaballapur apparel park has put a stop to the proposed development of a similar project at Bellary.

According to the government officials, the second park will be taken up only when Doddaballapur becomes operational.

The Bellary project is planned at Rs 11 crore.