Visakhapatnam: The Visakhapatnam Urban Development Authority (Vuda), is getting ready to call tenders to lease out prime land in the heart of the city, near Siripuram junction. This comes after the Vuda cancelled its agreement with a private firm to develop the 6,540 square yards site.
Vuda, in March, cancelled the pact with Vaibhav Group after it failed to ground the project even after 8 years of assigning the work to them. Vuda is now expected to call for fresh tenders to take up the work. As per original plan, a multiplex with IT space has been planned in the 6,540-square yards site adjacent to Vuda office in Siripuram.
Vaibhav Sky Scapes entered into a lease agreement with Vuda, under PPP mode, for the commercial complex with IT space on February 16, 2008. The lease agreement was for 33 years on lease rent at Rs 70.9 lakh at 5 per cent increase per annum with annual development premium at Rs 1.06 crore per year at 5 pc increase per annum.
As per the agreement, the construction of the project was to be completed in 18 months from the day the agreement is signed. "A fresh tender may be issued to lease out the land for development. It is a valuable land and in the heart of the city. It has been lying idle since long. We have given many extensions to the private firm and after they repeatedly failed to ground the project we had to cancel the pact," said a senior Vuda official.
Vuda issued orders of approval for the building plan. Vaibhav Group also obtained Environmental Clearance (EC) from the State-level Environment Impact Assessment Authority (SEIAA), as per one of the conditions of Vuda. The environmental clearance valid for five years was obtained in September, 2011, which is set to expire on Sept. 14, 2016.
After a meeting with the additional vice-chairman of Vuda in February, 2016, Vaibhav Sky Scapes informed Vuda that it had identified a new investor, financial due diligence was completed and a that a detailed plan of action would be submitted to Vuda. There is also outstanding due of the lease rent.
