wow! these numbers are all huge!! Some other details from the Hindu report ... ealty firm DLF plans to develop a huge integrated township spread over 9,178 acre on the outskirts of Bangalore at an estimated investment of up to Rs 60,000 crore over the next seven years. According to sources close to development, DLF would develop the project in a 50:50 joint venture with Dubai-based Limitless Holdings, a sister company of Nakheel. The total cost of project is estimated at between Rs 50,000-60,000 crore, including Rs 3,600 crore for the land, the sources said, adding that the investment would come from internal resources of the two partners and private equity at project-level. DLF will be given 2,200 acres of land at Bidadi on the city outskirts, the Minister for Primary and Secondary Education Basavaraj, Mr Horatti had said yesterday after a Cabinet meeting. DLF will deposit Rs 57.55 lakh per acre as development charges with Bangalore Development Authority, he had said. The Karnataka government has awarded the land it owns while the remaining area would be acquired from private parties with the help of the State, the sources said.

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rallied on this news. And I was thinking, given the standards of transparency in Bangalore's public bodies, would it be so hard for folks who approved this press release to buy some DLF stocks in advance? Just a thought.

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aha, also did you notice the frequency with which the "cabinet" is meeting in the last month or so and the speed at which it is approving projects? remember those days when the standard answer was this proposal would be taken up in the next cabinet meeting? this is what my ajji would have termed adhikaprasangi ... extra situational curiosity. ;)

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Snag Hits Bidadi Project
DECCAN HERALD



The State Government and the project developer, Delhi-based real estate major DLF Universal, are locking horns over finalising the Development Agreement for implementing the mega project estimated to cost Rs 50,000 crores.

Reason: The developer wants certain modifications to be done in the Development Agreement that was reached during H D Kumaraswamy-led coalition Government. It wants to hold the rights to claim liquidatory damages in case land acquisition process is delayed, rights to sub-lease the land openly and payment of development premium to be based on progress in land acquisition.

Result: The Government is not too keen to agree. In fact, it has directed the Law department to review these suggestions.

“We have asked the Law department to review it thoroughly. Suggestions made by the developer for modification will definitely have implications...Development Agreement is a legal document...We need to protect the interest of the State,” said S Krishnakumar, Advisor to the Governor. He held a meeting with Bangalore Metropolitan Region Development Authority (BMRDA) and Urban Development department officials in this regard on Thursday.

Official sources in BMRDA said the developer is not very confident about smooth land acquisition for the project. “It fears that the Government may face protests by local farmers and there are chances of the process getting delayed, leading to cost overrun. Hence, it wants to safeguard itself in the agreement,” sources pointed out.

So much so that the developer has so far not formed a consortium to implement the project. “The company wants to know the Government’s response to its suggestions for modifications, before roping in other players to form the consortium,” sources explained.

The mega project needs around 9,000 acres of land, of which, around 5,100 acres will be agriculture land in Bidadi -- roughly 30 kms from Bangalore city. The Government has to acquire the required land for the project, while the developer will implement the project, which is aimed at creating much-needed space exclusively to IT and BT industries.

Krishna Kumar further said the developer was well aware of the agreement and conditions that had been laid down before bidding for the project. “We could have straight away told them that we will not consider. But we have not done it. We want to see whether the modifications can be accommodated without sacrificing the interest of the State,” he stated.

The developer has now taken time to form a consortium. The Government, therefore, has enough time to look into the matter carefully. “At the same time, we will prepare for the preliminary notification for land acquisition...We will see what the Law department had to say,” he added.

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I wonder if a township of this magnitude is necessary. DLF claims that the township is mainly to support IT and BT industries. Do these industries actually need this kind of an investment - do we need high end skyscrapers and glass facades to work in ? OR high rises to live in ? Given the fact that all the work is done mostly on PCs these days ? Can't the IT industry co-exist with farms and agricultural land ? Converting 5,100 acres of arable land to concrete buildings is a horrendous mistake. All that we need is an efficient transport system and pockets of 'buildings' amidst lush green farms - a win win for everyone. It's not that simple, but a detailed comprehensive study and development can make such a project feasible. - pradeep

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