Tourist City Planned Near Mumbai

A MEGA proposal of Rame Vaibhav Development Pvt (RVDPL), envisaging a joint veture with total investments of 550 crore to develop an interntional tourist city encompassing leisure, entertainment and holiday homes themed on Asian mythology and Indian heritage, has been sent for the consideration of the Cabinet Committee on Foreign Investment (CCFI).

The RVDPL proposal enviages NRI and overseas corporate body (OCB) investment to the tune of Rs 412.50 crore in the total equity of Rs 550 crore. While the Indian promoter will have 25 pe cent equity stake in the joint venture, OCB investment will Rs 27 crore or 50 per cent and NRIinvestment will be Rs 137.50 crore or 25%.

In a note prepared for the CCFI, the industry ministry has said that representatives of the ministry of urban affairs and employment department of urban employment and poverty alleviation have given their no-objection to RVDPI2s revised proposal as 'no foreign equity was proposed'which follows the existing policies.

However, the industry ministry, while clearing the proposal, has said that the clearance is subject toverification of averments of the company relating to OCB status of the collaborating foreigninvestor by the RBI'.

RVDPL's proposal envisaging bringing up an international tourist city, some 150-kin off Mumbai, has projected a total foreign exchange earnings to the tune of $3,285 million over a period of 10 years. The revenue will be in the form of lease, non-recourse deposits, royalties, profits, etc.

The total foreign exchange outgo as lumpsum payments for technical know-how and design, international market research for feasibility during the period of collaboradon is estimated at Rs 1,919 crore. The total percentage of outflow over a period of 10 years has been estimated to be about 16.22 per cent of the total inflow of foreign exchange.