State invites EoI for new convention centre

Facility with seating capacity of 10,000 people to cost Rs 200 cr.

The Karnataka government is planning to build an international standard convention-cum-exhibition centre near the international airport at Devanahalli. The cost of the project is estimated at Rs 200 crore and it will have a seating capacity of over 10,000 persons.

“We are planning to develop the centre either in a joint venture or invite the private sector to do it independently. We have already floated expression of interest (EoI) for the project. So far, L&T and Gammon India have shown interest in building the centre,” Murugesh R Nirani, minister for large and medium industries, said.

Talking to Business Standard, here on the sidelines of a seminar on ‘Rain Water Harvesting for Micro small and Medium Enterprises and Government Incentives’, he said the convention centre would be developed on the model of a similar project developed by the government of Gujarat where the seating capacity is only for 5,000 people.

“Lot of industrial exhibitions and conferences happening in Bangalore city and there are not many good convention centres. We have surplus funds available with the Karnataka Industrial Area Development Board (KIADB) that will be used to build the centre,” he said.

The Karnataka Industrial Area Development Board will pump in about Rs 120 crore for the centre and the government will provide the remaining funds. The centre will be developed over the next one year, he said. Apart from building a main hall with a seating capacity of 10,000 persons, there will be a dozen small halls to house smaller conferences simultaneously. There will also be space for holding exhibitions at the centre. It will also have five-star category hotel within the campus, Nirani said.

He said the government is also planning to bring down the rate of service tax on purchase of land from the existing 12 per cent to 5 per cent for small and medium enterprises. Last year, the government had reduced the service tax from 22 per cent to 12 per cent for acquisition of land from the Karnataka Industrial Area Development Board (KIADB).

“Small industries can not afford to buy land in the open market, so in order to help them we are trying to allot them land through their own industry associations like Karnataka Small Industries Association (Kassia) and charge them lower rate of service charge,” Murugesh R Nirani, minister for large and medium industries said.

Earlier, addressing the seminar, organised by Kassia and Karnataka Council for Technology Upgradation (KCTU), he said the government has initiated steps to acquire land adjacent to Peenya industrial estate in Bangalore to develop it as the Greater Peenya Industrial estate. The government will empower Kassia to allot land to its members directly, he said.

Nirani said the department of industries and commerce was planning to set up 10 more government tool room and training centres in rural and backward areas of the state to help the poor students to take up technical courses. The department has requested the chief minister to make an announcement in this regard in the forthcoming budget for 2011-12, he said.

To help the small and medium industries, the government would release pending subsidy of Rs 80 crore before the budget session of the state legislatures session, he added.