Many global MNC getting in to build country largest convention centre

By Realty Quarter Bureau

26,000crore IICC project has received nod for the Union Cabinet this month and govt. has invited proposal by latest December 8

Samsung Construction and China Construction are few names to bid the competing with in house multinational company L&T and Reliance Infrastructure for bagging the biggest contract of constructing India’s largest convention centre IICC (International Convention and Expo Centre). The govt. has invited the proposal by latest December 8 under the engineering, procurement and construction mode i.e. EPC mode. The Department of Industrial Policy and Promotion (DIPP) held a pre-bid meeting on November 6 to gauge the interest of the market players where the project managed to grab global attention, according to government officials.

The EPC contract will be finalised by the end of December this year. It would involve development of trunk infrastructure along with exhibition-cum-convention centre and internal road network system, and underground car parking facilities. The first phase will commence in January 2018 and is likely to be completed by December 2019.

The government has planned the IICC as an international brand to promote growth and development of India’s trade and commerce. It will be used for hosting national and international events such as multilateral summits, trade fairs, conferences and conventions.

The proposed business district includes a 230,000 square metre exhibition and convention space, 275,000 sq metres of hotel space and 375,000 sq metres of commercial retail entertainment and offices. The project site is spread across 89.72 hectare in Dwarka in southwest Delhi.

The components comprising hotels, retail space and offices will be implemented in public-private partnership mode. The government expects footfall of more than 10 million after Phase-I and 23 million after the completion of Phase-II in 2025. The project is estimated to generate more than 500,000 direct and indirect employment opportunities.

The Cabinet had approved creation of a special purpose vehicle (SPV) for the implementation of the project with 100% equity from the government through the DIPP.

The government will provide Rs 2,037 crore to the SPV over a period of three years to fund trunk infrastructure. The SPV will be authorised to raise debt or mobilise resources through land monetisation depending on market conditions.