be sorted even after that, which are over now and so the tenders for the land have been floated. We hope that the process goes on smoothly as a substantial amount of earning from development of this land will be utilised for the ongoing MUTP-Phase II,” says Rakesh Saksena, managing director, MRVC.
The bidder will be selected based on the amount quoted for payments to be made to RLDA as a combination of one or more of the following — lease premium, annual lease
rent and percentage share from project revenues.
The selected bidder shall deposit commitment security of R60 crore within 15 days of issue of ‘letter of demand’ from RLDA after opening of the financial bid. The project has to be implemented through a special purpose company (SPC) to be set up by the selected bidder.
The paid up and subscribed share capital of the SPC
at the time of signing of the lease agreement with RLDA should not be less than R175 crore.
The SPC created will also be required to open and operate an escrow account in which 75% of project revenue shall mandatory be set aside towards payment of outstanding installments of lease premium to RLDA.
In case of lease premium, the selected bidder will be required to pay 15% of the lease premium amount within 60 days from the date of issue of letter of acceptance (LOA) by RLDA. The total lease premium is to be paid within five years from the date of payment of the first installment. As for annual lease, rent shall be revised upwards by 15% every three years (compounded) during the entire term.
Grant Thornton is the consultant on the project and the bids will be evaluated by the consultant along with RLDA. The last date for submission of bids is June 3, 2014.