Batasingaram Logistics Park bid may be aborted- The New Indian Express

Batasingaram Logistics Park bid may be aborted.

Govt’s delay escalates project cost, HMDA does not favour contractor’s demand for VGF or extending concession period. Share Via Email. Published: 25th February 2017 01:31 AM | Last Updated: 25th February 2017 07:58 AM | A+ A A- HYDERABAD: Due to the indifferent attitude of the state government, tenders for the crucial long-pending Logistic Park proposed at Batasingaram, adjoining NH-9 (Mumbai-Hyderabad-Vijayawada) near Ramoji City on the city’s outskirts are all set for cancellation, paving the way for floating of fresh bids. The truck terminal was to be developed in public-private partnership (PPP) and the state government accorded approval to HMDA to award the contract to Credence Logistics Park (Hyderabad) Pvt Ltd. But, before signing the agreement, HMDA had sought bank guarantee from the company but the latter said the capital cost escalated and requested the government to provide viability gap funding (VGF) or extend the concession period in view of the delay by the government in giving the nod. As against the initial cost of Rs 35 crore estimated in November 2011, the cost of the project has now shot up to Rs 50 crore. The company sought Rs 5-crore VGF or extension of concession period from 33 to 50 years.

HMDA felt that the company’s request was unjustified and wrote a letter a few days ago to the state government recommending cancellation and recall of bids. The government is to take a decision now whether to cancel the bid or oblige the request of the company. After sitting over the project file for nearly four years (since April 2013), the government gave approval in October 2016 following constant persuasion from HMDA authorities. In the case of the second logistic park proposed in survey number 124 at Mangalapally in Ibrahimpatnam mandal in Ranga Reddy district (22 acres) to be set up a cost of Rs 20 crore, the work was awarded to a joint venture company, Ancon Design Group-KCP Project Pvt Ltd, Hyderabad. The government permitted HMDA in 2010 to build truck terminals as integrated one-stop facilities for freight operators, third-party logistic service providers, cargo-handling companies, truck drivers and warehousing with spacious parking and other facilities. The logistic parks were proposed to be part of infrastructure for transportation. They will meet the increasing infrastructure demand for freight logistics.