Published On : Fri, Jul 29th, 2022
By Nagpur Today Nagpur News

FDCM pays Rs 3 crore to Essel World, cancels agreement to develop Gorewada Zoo

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FDCM to go solo for development of African Safari in Balasaheb Thackeray Gorewada International Zoo

Nagpur: The agreement between Maharashtra Forest Development Corporation (FDCM) and Essel World Leisure Pvt Ltd for the development of Balasaheb Thackeray Gorewada International Zoo has finally been cancelled. Other developments, including the development of African Safaris, were stalled by this agreement. Now by 2024 the FDCM itself will develop activities including African Safari.

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The FDCM has cancelled the agreement by paying Rs 3.21 crore to Essel World only last week. The Essel World had 49 per cent stake in the joint venture. If FDCM buys this stake, it will be able to develop the African Safari project completely independently. Essel World was contracted to develop Gorewada International Zoo.

In the month of April, a decision was taken to resolve the mutual dispute under the chairmanship of Chief Secretary Manukumar Srivastava. However, due to some technical issues between FDCM and Essel World, the transaction could not proceed. Therefore, the development of Phase II of the zoo was stalled due to non-provision of funds by Essel World. Indian Safari and the entire project was to be completed in partnership between the state government and private companies.

This entire project was completed by the state government. Nevertheless, the company had made various demands including the demand of Rs 11 crore. FDCM settled this matter in Rs 5.5 crore. Essel World has withdrawn deposits of Rs 2.29 crore in January 2019 itself. The remaining amount was given to a private organization. FDCM also bought 49 percent shares.

The Gorewada project is being developed in two phases. Indian Safari has been fully developed in the first phase. Now the next phase is also underway which includes protective walls, internal roads and other development works. For this an architect or consultant will be appointed. The state government has sanctioned an amount of Rs 100 crore for African Safari. Now this project will be fully developed by FDCM on its own. It is also learnt that no tender will be floated for partnership.

The FDCM & Essel World JV was signed on September 6, 2018, to implement the Rs 452 crore Gorewada Zoo project on a PPP basis with 51:49 stakes. Essel was roped in by the then BJP-Shiv Sena Government to expedite the project. Viability Gap Funding (VGF) by the government was Rs 200 crore while the remaining amount was to be invested by Essel, which was never done.

The bone of contention between FDCM and Essel was the 26 hectares of revenue land adjoining the Gorewada forest. FDCM was to hand over the land to Essel for commercial exploitation. The private player was to set up an adventure park, hotels, and resorts to bring in global tourists. The firm backed out as it did not get the land.

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