Proceedings of the Government of Karnataka

PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA

Sub: Development of Devanahalli Business Park (DBP) adjacent to Bangalore International Airport.

Read:1. G.O.No.IDD 26 DIA 2005 dated 30.10.2006.

2. G.O.No.IDD 26 DIA 2005(i) dated 20.03.2007.

3. G.O.No.IDD 26 DIA 2005 (ii) dated 20.03.2007.

Preamble:

In the Government Order read at (1) above, a Committee was set up under the Chairmanship of the Chief Secretary to examine the request of the various State Government / Central Government / Private Organisations for allocation of 408 acres and 33 guntas of land retained by Government of Karnataka adjacent to Bangalore International Airport near Devanahalli. It has been decided to develop this land in to a Business Park (Devanahalli Business Park).

(2). In the Government Order read at Sl.No.(2) above, sanction of the Government was accorded to partially develop this land and to allocate 53 acres of land to the State and Central Government Organisations at the market rate, except in case of Mega Convention Centre of Tourism Department wherein the rate would be fixed through a transparent bidding process.

(3). In the Government Order read at Sl.No.(3) above, sanction was accorded to partially develop this land and to auction the remaining land after allotment of 53 acres to the State Government / Central Government Organisations through a transparent bidding process to be conducted by KSIIDC, subject to certain conditions.

(4). Subsequently, the desirability of selling the land through auction was re-examined in consultation with KSIIDC. It was pointed out by KSIIDC that considering the importance of the location i.e adjacent to an international airport, the value of the land would keep appreciating with the opening of the airport and its further development. By following a lease model instead of out right sale, the legal ownership of the land will continue to vest with the Government. At the same time, by stipulating appropriate lease rental structure, it will be possible to realize the maximum value for the land in the form of upfront lease rent, revenue sharing or a combination of these. As opposed to this, out right sale would give unfettered right to the buyer for subsequent alienation or sale.

(5). The matter relating to partial development of the land was re-examined. It was felt absolutely necessary to create certain minimum common infrastructure such as roads, drains, water and sewage lines etc., through a Utility Service Provider (USP) who will be selected through a transparent bidding process to under take this work. Of the total extent of 408 acres 33 guntas of land (revised to 413.65 acres due to closure of the major district road and village road passing through the land), only about 247 acres of land will be available for disposal on lease basis after development of infrastructure and allotment of 53 acres of land to the Government Organisations.

(6). Accordingly, the KSIIDC has modified the earlier land use plan and sought the approval of Government for revised land use plan. Meanwhile, M/s. Mysore Sales International Ltd., (MSIL) has requested for allotment of an additional 25 acres of land for setting up warehousing and related facilities in order to meet the future requirements of cargo handling at the new airport. This request has been examined and a decision was taken to increase the area for MSIL's air cargo facility to 25 acres and shift it to the location adjacent to the road connecting BIAL’s main access road and DBP land. It was also decided to earmark 1 acre of land for DGCA as per their request. With this, the area earmarked for allotment to State/Central/Government organizations increases from 53 acres to 71.5 acres.

(7). It was through the efforts and due diligence of KSIIDC that it became possible to identify and retain the excess land of 413 acres 26 guntas. Considering this and also the continuing role of KSIIDC in the planning and disposal of the land retained with the Government, KSIIDC requested to permit it to retain 11.74 acres of land located between railway track and the NH-7 and also to allow it to collect 10% of the proceeds from the disposal of land as “service charges”.

(8). Regarding the price to be fixed for allotment to State/Central/Government organizations, it was recommended to fix the rate at Rs.3 crores per acre for the land allotted to State Government / Central Government organizations which are not commercial / industrial in nature.

(9). Government has carefully considered all the above aspects and issues the following order:

GOVERNMENT ORDER NO.IDD 26 DIA 2005

BANGALORE, DATED:14.05.2008

Sanction of the State Government is accorded to allocate 83.24 acres of land to the following State and Central Government Organisations and to fix the rate at Rs.3.00 crores (Rupees three crores) per acre for the land allotted to the State Government / Central Government organizations which are not commercial / industrial in nature.

a)  2.5 acres to the Bangalore Metropolitan Transport Corporation (BMTC) for construction of a ‘Bus Depot’.

b)  25 acres to MSIL in lieu of 7.5 acres allotted earlier for setting up cargo handling facility subject to the said company holding the land on lease basis as in the case of other bidders. The lease rent to be charged on the basis of the lease amount to be received for similarly located plots.

c)  35 acres to the Tourism Department of Government of Karnataka for development of a ‘Mega Convention Centre’.

d)  2 acres to Karnataka Beverages Corporation Ltd., for construction of a Bonded Warehouse’.

e)  3 acres of land to the Meteorological Department, Government of India for establishment of a ‘Modern Meteorological Centre and Office Complex’.

f)  2 acres to the Customs Department, Government of India for construction of a “Customs House and Air Cargo Complex’.

g)  1 acre to the New Mangalore Port Trust for setting up of a ‘Trade Promotion Centre’.

h)  1 acre land to the Director General of Civil Aviation (DGCA), Government of India, Ministry of Civil Aviation.

i)  11.74 acres of land to Karnataka State Industrial Investment Development Corporation (KSIIDC).

2. The revised land use pattern comprising of the following land parcels is hereby approved:-

3. Further, sanction is also accorded to bid out the entire balance land available, after earmarking 83.24 acres for Government agencies and 21.33 acres for KPTCL Sub station and forest land, in one parcel and to remit the proceeds arising out of lease rentals to the Consolidated Fund of the State.

4. To allow KSIIDC to collect 2% of service charges out of the proceeds.

5. The lease will be for 30 years initially with automatic renewal for another 30 years.

6. The location of the land allotted to the Government Departments / Organisations will be as in the land use plan given by KSIIDC. Subject to the approval by the Local Planning authority, the Lessee is given flexibility to change the land use plan in respect of the remaining land. For the land plots allotted to the Governmental Agencies, the developer shall ensure adequate access roads and also to ensure provision of basic infrastructure support.

7. The Developer (Lessee) is also permitted to sublease a portion of the land. The extent of sublease portion will be determined by the Government on the basis of pre-bid negotiations.

8. The Lessee shall develop a direct unhindered access road from NH-7 to Devanahalli Business Park (DBP) at his own cost.

This order issues with the concurrence of the Finance Department through its U.O.Note No.FD 470 Exp.I/08 dated 26.04.2008 and Executive Committee Note No.ECC 169/2008 dated 03.05.2008.

By order and in the name of the

President of India

Sd/-

(N.Manjuala Geetha)

Under Secretary to Government,

Infrastructure Development Department.

To: The Compiler Karnataka Gazette for publication in the gazette of next issue and to supply 50 copies to this department.

Copy:

1)  The Principal Accountant General in Karnataka (Audit I & II), Bangalore.

2)  The Accountant General in Karnataka (A&E), Opp: Park House, Palace Road, Bangalore.

3)  The Chairperson & Managing Director, KSIIDC, Khanija Bhavan, N0.49, 4th Floor, East Wing Race Course Road, BANGALORE – 560 001.

4)  The Managing Director, Mysore Sales International Ltd., #36, Cunningham Road, Bangalore-5600 52.

5)  The Secretary to Government, Tourism Department.

6)  The Commissioner, Tourism Department, Khanija Bhavan, Bangalore.

7)  The Commissioner, Karnataka Housing Board, Kaveri Bhavan, Bangalore.

8)  The Managing Director, BMTC, Bangalore.

9)  The Managing Director, KPTCL, Bangalore.

10)  The Chairperson, BWSSB, Bangalore.

11)  The Managing Director, iDeCK, No.39, 5th Cross, 8th Main, RMV Extn. Sadashiv Nagar, Bangalore-560 080

12)  The Chief Executive Officer, BIAL, 118, Gayathri Lakefront, Outer Ring Road, Hebbal, Bangalore – 560 024.

13)  Chief Executive Officer and Executive Member, KIADB, 14/3, 2nd Floor, Rashtrothana Parishath Building, Nrupathunga Road, Bangalore – 560 001.

14)  The Director General of Civil Aviation (DGCA), Government of India, Ministry of Civil Aviation, Rajiv Gandhi Bhavan, Safdarjung Airpoprt, New Delhi – 110 003.

15)  The Director, India Meteorological Department, Meteorological Centre, Palace Road, Bangalore – 560 001.

16)  The Commercial Manager – Karnataka, Air India, Unity Building, J.C Road, Bangalore – 560 002.

17)  The Chief Commissioner of Customs, Bangalore Zone, C.R. Building, P.B. No.5400, Bangalore – 560 001.

18)  The Chairman, New Mangalore Port Trust, Panambur, Mangalore – 575 010.

19)  The Managing Director, Karnataka Beverages Corporation Ltd., Bangalore.

20)  The Chairman, BIAAPA, Bangalore.

21)  The Under Secretary (Exp.I), Finance Department, Vidhana Soudha, Bangalore.

22)  The Senior Director, PF & R Divn., Planning Department, MS Building II Stage, Bangalore.

23)  The PS to Advisor to Governor, Vidhana Soudha, Bangalore.

24)  The PS to PRS, C & I.

25)  The P.S. to PRS, IDD/ The P.A to DS, IDD.

26)  S.G.File / Spare copies.

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