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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.

BANGALORE, Nov. 7

THE Karnataka Government has received "very encouraging" response from foreign as well as domestic companies for joint venture and technical consultancy for its proposed apparel park, according to Government sources.

"Expression of interests are pouring in... we will invite each party to make their presentation after November 20," they added.

The process of selecting the new venture partner would likely take close to three months from now, they said. "Several firms based in UK and Singapore have submitted their proposals through their India representative... the foreign interest is very positive," they said.

Recently, the Government had increased the proposed project cost of apparel park to Rs 32 crore from Rs 20 crore.

The hike in project cost was "due to increasing opportunities in apparel outsourcing", the officials said.

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 proposed project is likely to come up near Doddaballapur.

The project is likely to be implemented through a special purpose vehicle (SPV), in which the private partner is likely to pick up equity stake, according to officials. However, the details of the proposed SPV, how much stake the partner is likely to pick up, are being finalised. The Central Government 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 federal 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. The 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 officials, the second park will be taken up only when Doddaballapur becomes operational. The Bellary project is planned at Rs 11 crore.

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