Team Herald
PANJIM: Goa Tourism Development Corporation (GTDC) has rebutted claims by industry stakeholders that the proposed ropeway service is not in safe hands.
The GTDC has also reiterated there is no financial obligation from the government involving any tax payer money for the project.
In a statement issued on Saturday, GTDC pointed out that Menus Adventures Pvt Ltd is one of the largest Adventure Tourism companies in India.
“Menus Adventures has more than a decade’s experience in installation and maintenance of all types of imported ropeway systems in India. The company has a rich track record of designing, installing, operating and professionally maintaining one of the prominent ropeway projects in India adhering to CEN (European Committee for Standardization) standards,” it said.
The statement adds that the company is sole distributor in India for ‘Beijing Goodyou Ropeway Engineering Co Ltd’, the largest ropeway manufacturer in China, and has done over 200 installations worldwide.
GTDC says Menus had partnered with Doppelmayr Garaventa group, Austria for technology support, however, it clarifies that Doppelmayr is not part of the consortium but the company is a technology provider of Menus/Royal Rides.
Reacting to opposition against the government settling for a mere five percent of the annual gross turnover and not having charged a fixed lease rental, GTDC and Menus Adventures pointed out that the route for the project is between Campal-Panjim (5200 sq m land belonging to Department of Tourism) and Reis Magos (8000 sq m land belonging to Comunidade of Nerul). “Both land parcels were acquired by the department,” they said.
The statement adds that GTDC is entering into a long term lease agreement with Nerul comunidade for development of ropeway project for 99 years. “GTDC will collect the necessary lease rentals from the concessionaire and in turn will pay it to the comunidade. The arrangement will continue for the next 99 years irrespective of the term of the concessionaire. Hence, there is no financial obligation from the government involving any tax payer money for the project,” the statement reads.
“Apart from the above, the concessionaire is providing an upfront concession fee of Rs 1.60 crore plus applicable taxes to the Tourism Department. In addition, the concessionaire will pay five percent of gross revenue with GTDC,” the statement says adding the concessionaire will pay entertainment tax and other applicable taxes, which will reflect in the government exchequer.
The project has other indirect benefits such as positive effect in economic activity in and around the region, and creation of more than 700 direct and indirect jobs to locals.
“On the other hand, as part of the project requirements, the concessionaire will enter into an escrow agreement (four-party agreement) between GTDC, lender, escrow bank and the concessionaire,” the statement says.
GTDC clarified that they have obtained administrative approval from the government for selecting Menus as concessionaire for the project and that complete tendering process was undertaken.
Darashaw & Company Pvt Ltd had earlier submitted a feasibility-cum-detailed project report in July 2014. “Based on the detailed traffic study and extant market rates of equipment and machinery, the project cost was estimated at approximately Rs 80 crore,” GTDC says, adding that the consultant had worked out the technical and financial criteria for the project where the bidder needs to have a net worth of at least Rs 20 crore.
