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Orissa government to acquire 626 acres more for Shamuka tourism project near Puri
February 19, 2010


Orissa government to acquire 626 acres more for Shamuka tourism project near Puri


http://www.hospitalitybizindia.com/detailNews.aspx?aid=7491&sid=6

19 February 2010


HBI Staff, Mumbai:

According to a report in The Business Standard, the Orissa government is expediting land acquisition process for Shamuka tourism project, near Sipasarubali, about 10 kms south of Puri. The Shamuka tourism project will consist of four five-star hotels, a convention centre of international standards with a seating capacity of nearly 1,500, a 18-hole golf course, boutique hotels, international spa and wellness centres, an entertainment zone and sports facilities.

The state government, which acquired around 970 acres in the first phase for the Rs 3,500-crore project, has now set in motion the process to acquire 626 acres of land for the project in the second phase. The Shamuka tourism project needs 2,500-3,000 acres in all. The second phase of land acquisition is expected to be completed by the end of 2010.

The project is being developed on the Public-Private Partnership (PPP) mode. After the second phase land acquisition, the Orissa Tourism Development Corporation (OTDC) will invite fresh bids for the project. This has been necessitated as the initial attempt to invite bids for the project received lukewarm response last year.

It may be noted that only three hotel chains had participated in the earlier bidding process for developing the four five-star hotels on 100 acres of land. Owing to this lukewarm response to the bidding process, the Orissa government had decided to change the provisions in the bid document before going for the fresh bidding process.

The state government had engaged global consultancy firm PricewaterhouseCoopers (PwC) to incorporate some new provisions in the bid document for the Shamuka tourism project so as to make it investor friendly. PwC had submitted the revised bid document to the state government in October 2009 and it needed to be approved by the state government.

The state government is investing Rs 50-70 crore on providing external infrastructure like electricity and water supply for the five-star hotel properties.