Bidadi project: State hit by recession

Bidadi project: State hit by recession
CHANDRASHEKAR G.
DC | BENGALURU


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● DLF HAD AGREED TO PAY RS 57.5 LAKH PER ACRE, NEW TENDER LIKELY TO FETCH ONLY RS 5 LAKH te hit by re The plan for the Bidadi Knowledge City, promoted as a top destination for IT companies, was approved by the coalition JD(S)-BJP government. However, the coalition collapsed before DLF could obtain land acquisition rights. When the BJP came to power, all the projects approved by Kumaraswamy were put on hold.

With India’s largest real estate company DLF pulling out of the Rs 60,000 crore Bidadi Knowledge City project citing the global economic recession, the state government is set to lose thousands of crores of rupees that it was looking to rake in.
The government will now have to call for fresh tenders and award the contract for Bidadi Knowledge City to a new developer.

t: Stat In the bargain, due to the fall in real estate prices since the contract was awarded and the much less rosier economic scene, it will have to accept a price per acre of land that is expected to be less than a tenth of what the Delhibased DLF had agreed to pay.

When the H.D.Kumaraswamy-led JD(S)BJP coalition government awarded the contract, DLF had agreed to pay Rs 57.5 lakh per acre to the state government, and the project was spread over 10,000 acres.

Now, when the tender is floated again, the government will be lucky to get even Rs 5 lakh an acre, say official sources.

“Unfortunately, due to the global meltdown, the profit that the state government will make from the project will be paltry in comparison to what was expected from DLF. Land prices have crashed. The government ecess cannot expect more than Rs 5 lakh an acre,” the sources said.

Moreover, the government has had to return to DLF the Rs 400 crore that the company had deposited with it as security and towards land acquisition costs.

The plan for the Bidadi Knowledge City, promoted as a top destination for IT companies, was approved by the coalition JD(S)-BJP government.

However, the coalition collapsed before DLF could obtain land acquisition rights.

sion When the BJP came to power in Karnataka, all the projects approved by former chief minister H.D.Kumaraswamy were put on hold for a review.

In the meantime, the global economic crisis intervened, and real estate prices crashed, forcing DLF to pull out of the project.

The state government had proposed five townships, including Bidadi, to decongest Bengaluru.

While Bidadi Knowledge City is up for fresh tendering, the other four projects haven’t taken off at all.