Bhutani Group and Boney Kapoor are now going to build Film City near Noida International Airport

Real Estate

Bhutani Group and Boney Kapoor are now going to build Film City near Noida International Airport

As you have heard, the Boney Kapoor and Bhutani groups and Akshay Kumar are looking to invest in Film City, which is an ambitious project passed by the UP government. Boney Kapoor and Bhutani Group were jointly selected for this project in the 3rd tender round. Akshay Kumar and three other players were involved in this real estate project, three were T-series, KC Bokadia, and 4 Lions. This news was gathered from timesofindia. The 70th YEIDA Board meeting declared the project of Film City near Noida International Airport.

There are 3 rounds of tenders passed by the UP government, which succeeded in 3rd round or maybe in 4th round (if any). Let's discuss these 3 rounds from start to end.

1st Tender round

1st round was named the first global tender, which was passed on November 23, 2021. They offer the project proposal for 1000 acres of land, which is concessed over 40 years. The special point is that the UP government determines the design of this construction.

Bid Parameter:- Highest annual premium over & above reserve price.

Construction cost would be 7210 crores in which a company received one bid but other company fails to comply with the terms & conditions. The tender ending date was extended 3 times more before its cancelled.

2nd Tender Round

2nd tender was held on November 7, 2022, which was cancelled on March 31, 2023; well before cancelled, it was extended four times. As per 1st round, The proposal was changed in 2nd round, which was now confessed for 60 years & can be extended by 30 years; the last time, the government had the power to determine the design, but in 2nd round, they confirmed that the developer had control over the design. Again, the bid parameter & construction cost remain the same, and no company has applied.

3rd Tender Round

Now comes to 3rd tender, which was named Third Global Tender, held on September 30 2023. The government has revised the proposal, and now phase 1 of the project will develop on 230 acres, and the concession duration is now 90 years. In which the whole project will completed in 8 years, and the film institute will be completed in 3 years. The builder and developer have the right and control over design, but the site model is divided into commercial and industrial spaces, 75 acres and 155 acres, respectively.

The minimum investment by concessionaire is ₹50 crores for the first 2 years, ₹75 crores for the next 3 years, and ₹100 crores for the following 3 years. Four companies had applied for gross revenue offered, which are Bayview (18%), 4 Lions (15.1%), Supersonic (10.8%) & T-Series (5.3). The date was extended 4 times before Bayview of film producer Boney Kapoor & Bhutani Infra were selected for the project.

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