Yashobhoomi phase 2: ₹20K cr private investment targeted

An interministerial committee will steer the project structuring, development options and implementation.

After the inauguration of the ₹5,400 crore first phase of India International Convention and Exhibition Centre (IICC), the government now plans to attract private investments to the tune of nearly ₹20,000 crore for the second phase of the project which includes 3,500-room hotels and with 4.50 million square feet of office and retail developments, according to officials aware of the matter.

The second phase involves construction of eight hotels — three five-star and four-star hotels, and two three-star properties— and service apartments with a total of 3,500 rooms inside the complex. (HTPhoto)

Yashobhoomi phase one having massive conference tourism infrastructure was inaugurated by Prime Minister Narendra Modi on September 17, paving the way for the second phase of the ₹25,703 crore project, an official said requesting anonymity.

“World-class infrastructure created in the first phase and entirely funded by the government, makes the second phase attractive for private firms. Now the government will invite global bids in phases to make Yashobhoomi a global conference tourism destination that would generate over half-a-million additional jobs,” the official said, requesting anonymity.

The second phase involves construction of eight hotels — three five-star and four-star hotels, and two three-star properties— and service apartments with a total of 3,500 rooms inside the complex.

Besides the two exhibition halls constructed in the first phase, the second phase will have three additional halls. Together, the five halls will have a total built-up area of 3.23 million square feet, which will be connected with a one-km long grand foyer, the official quoted above said. The three halls, could be kept outside private developments, he said. “Private investors will be roped in to develop 4.50 million square feet office and retail developments,” the official added.

According to the official quoted in the first instance, the government is considering to award projects through bids under the public-private-partnership (PPP) mode. “Modalities are being worked out for massive phase-two developments. Both domestic and international firms are eager to bid because of the ready infrastructure and completed road, metro and airport connectivity. It is a work in progress and specific details along with timelines will be announced in the due course,” the official said.

An interministerial committee will steer the project structuring, development options and implementation.

Thus, revenue generating components — such as hotels, service apartments, retail and office space — will fund the non-PPP components of the project, added the official.

IICC managing director and CEO Sumita Dawra said that their “vision is to create a self-sustainable mega infrastructure project for exhibitions and conventions in India, such as Yashobhoomi, and witness its powerful multiplier effect unleashed for investment generation, trade facilitation, connecting buyers to sellers in various key sectors, and for income and employment generation on a large-scale.” “Now that Phase 1 has been successfully completed and showcased to the world, prospects of bidding for Phase 2 are bright,” she said. Dawra is special secretary at the department for promotion of industry and internal trade (DPIIT), an arm of the Union commerce and industry ministry.

The entire project is being promoted by a government-owned special purpose vehicle (SPV) — the International Convention and Exhibition Centre Ltd. The SPV was incorporated on December 19, 2017 with an initial authorised capital of ₹2,100 crore, a wholly-owned entity of the Union government through DPIIT.

The Union cabinet approved the proposal of ₹25,703 crore mega exhibition-cum-convention centre project in November 2017.