Creative Choice, the Florida-based company that had been allotted the land development contract for the ambitious Infocity project, signed the concession joint venture agreement here on Thursday even as a top secretariat official cast apprehensions on Creative Choice’s ability to deliver.

The state government, however, is yet to sign the agreement, as Creative Choice has not furnished development security of Rs 1 crore, Rs 20 lakhs in cash and Rs 80 lakhs as bank guarantee. Mr Barot had furnished a development security of a Florida-based bank but the state government has insisted on a guarantee endorsed by a scheduled national bank enforceable in the country. The state government has agreed to a few minor changes in the concession agreement but the essence of the agreement has been kept intact.

Gujarat Informatics Ltd had given an ultimatum to Creative Choice on June 27 to either sign the lease agreement by July 15 or "forget about it altogether." Dilip Barot of Creative Choice signed the dotted line in presence of the chief minister, minister of state for information technology Bimal Shah, chief secretary L.N.S. Mukundan, economic advisor to the chief minister S.K. Shelat and scientific advisor to the chief minister Prof. N.V. Vasani.

A top secretariat official meanwhile was sceptic about Creative Choice’s ability to deliver. "In most developed states be it Andhra Pradesh, Maharashtra, Karnataka or Tamil Nadu, IT projects such as these have the sound backing of private companies with proven credentials and sound financial position. As long as the concept of ‘aapno manas’ (our man) prevails, projects in the state are bound to fail," the source said.

The state government has, however, not agreed to the conditions of a freehold land and has instead put forth a condition of a 30-year lease with a provision to extend it for 30 more years and then give it as freehold land.

The foundation of the first infotower will be laid after August 15 and will be completed in one year. Creative Choice will market the project with assistance from the state government. The first phase of the project will involve construction of clubhouse, a hotel and a school that will give value addition to the project. It also involves the construction of a pad for the infotower over an area of five acres whereas 24 acres land will be kept as open plots for companies. The company will have to submit a detailed project report within three months and the first phase, which involves Rs 82 crores, will be completed within 18 months.

The second phase of the project will commence only after 75 per cent occupancy is achieved in the first phase of the project.

Republished from Asian Age