News

06 December 2017

The Economic Times

Global firms line up for India’s largest convention centre; Rs 26,000-cr project may create 5L jobs

Nearly 15 global players including Samsung Construction and China Construction are competing with home-grown companies such as L&T and Reliance Infrastructure for bagging the contract for constructing India’s largest convention centre.

The government has invited the request for proposal by December 8 under the engineering, procurement and construction (EPC) mode after the Rs 26,000 crore International Convention and Expo Centre (IICC) project received the Union cabinet’s nod earlier this month.

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.

“Convention and exhibition facilities will be operated and managed by experienced global players… The facilities will be on a par with the best in the industry worldwide in size and quality,” said a senior government official, who did not wish to be identified.

Several international exhibition organisers from Germany, Singapore, Australia, Hong Kong and Dubai have evinced interest in operating the IICC, the official said.

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.