Private investors not quite enthused about Amravati tourism project

Friday, June 22, 2018

The time when the State government is withdrawing all the stops to endorse Amaravati as the next key tourist destination, private investors do not look quite hopeful in terms of investing in the proposed tourism projects in the city. The case in point: The AP Capital Region Development Authority (CRDA), owing to passive response from bidders, at present has given a second call to the investors for a Request For Proposal (RFP) for the much-touted Amaravati Marina project.

 
Even though the APCRDA had invited an RFP for the prospective project in March and arranged pre-bid meetings with potential investors, till now, only two firms have submitted their proposals.

 
“Initially, about 15 firms evinced interest in the project, but only two filed bids from across the country. We have decided to give a second call as the number of bids filed was lower than we expected,” a senior official explained.

 
It might be reminded that the project was proposed to be developed in eight acres in Venkatapalem village as the biggest marina in the country. The total cost of the project was around `40 crore.

 
Not only Amaravati Marina project, other projects also proposed under Public Private Partnership (PPP) model, like the Sports and Recreation Club, which is a part of the Amaravati Central Park, world-class multipurpose sports hub and others, are in a similar situation.

 
“Without inhabitants [in the capital], there will be no tourists to use the facilities. Therefore, the project cannot be financially sustainable in the short term,” was one fear raised by a prospective investor. Similarly, other bidders sought higher revenue sharing considering that the greenfield city would have challenges from the “densification and populating aspect”.

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