The Consortium of ICICI, Nagarjuna Construction Company and the Indian subsidiary of US-based Tishman Speyers bagged the prestigious 400 acre integrated township at Tellapur on the city outskirts at Rs 4.21 crores an acre. Tellapur is located five kilometres from Hitec City and falls under Medak district. The township will have residential, commercial and recreation facilities.

The consortium, which was the lone company to submit both the technical and financial bids, agreed to pay Rs 21 lakhs above the minimum upset price of Rs 4 crores per acre (Rs 1,686 crores for the entire land) and pay Rs 311 crores to the government under the revenue share component. The consortium will complete 70 per cent of the project in the first phase by 2010 and the remaining by 2014. Significantly, the consortium agreed to clear the 70 per cent upfront payment of the land cost before September 2007.

“The consortium will pay Rs 400 crores towards upfront payment of land cost immediately after receiving the letter of award and the remaining Rs 780 crores by September 2007,” ORR project director Piyush Kumar told this correspondent. The officials were a relieved lot because several real estate giants had backed out of the bid in view of the high upfront payment.

The consortium put the entire project cost at Rs 5,330 crores including the land cost. This is the highest single residential project in the country surpassing the one in Noida where the authorities had put a project of Rs 1,550 crores for open auction. “Though the consortium is the lone company, we have prepared the Request For Proposal in such a manner that the project will take care of majority of our financial requirements for projects like Outer Ring Road. Even the lone company is paying more than what we have envisaged in the RFP,” Mr Piyush Kumar said.

The consortium also agreed to pay Rs 311.10 crore above the land cost as revenue sharing with the government in five years and Rs 100 crore towards interest on all the components. The ORR project received a major boost with the Tellapur bid as the amount would take care of the relief and rehabilitation component.