STUDY OF DEVELOPMENT POTENTIALAROUND BANGALORE INTERNATIONAL AIRPORT JUNE 2010 Submitted to Infrastructure Development Department Infrastructure Development Corporation (Karnataka) Limited Infra House, 39, 5th Cross, 8th Main, RMV Extension, Sadashivnagar, Bangalore – 560080 Ph: 91 – 80 – 43448000; Fax: 91 – 80 – 23613016
2 Study on Development Potential around Bangalore International Airport CONTENTS 1. BANGALORE – THE BURGEONING METROPOLIS 5 1.1. BANGALORE ‐ INDUSTRY PROFILE 5 2. BANGALORE INTERNATIONAL AIRPORT 8 2.1. BANGALORE INTERNATIONAL AIPRORT‐ FEATURES 8 2.1.1. DESIGN AND FACILITIES 8 2.1.2. CARGO VILLAGE 9 2.1.3. PARTNERS FOR AIRPORT SERVICES 10 2.1.4. ROAD AND RAIL INFRASTRUCTURE 10 2.1.5. BANGALORE INTERNATIONAL AIRPORT AREA PLANNING AUTHORITY (BIAAPA) 14 3. PROPOSED DEVELOPMENT 17 3.1. MOUS SIGNED AT GLOBAL INVESTORS MEET 18 4. INFORMATION TECHNOLOGY, INFORMATION TECHNOLOGY ENABLED SERVICES & BIOTECHNOLOGY 21 4.1. INFORMATION TECHNOLOGY INVESTMENT REGION (ITIR) 21 4.1.1. POLICY FOR INFORMATION TECHNOLOGY INVESTMENT REGIONS (ITIR) 22 4.2. OTHER PROPOSED DEVELOPMENTS 23 5. DEVANAHALLI BUSINESS PARK 26 6. AEROTROPOLIS 30 6.1. CONNECTIVITY & TRANSPORT INFRASTRUCTURE 30 6.2. AEROTROPOLIS ‐ ZONES 30 6.2.1. DOWNTOWN 31 6.2.2. BUSINESS UNIT 31 6.2.3. TECHNOLOGY CENTRE 31 7. GLOBAL FINANCIAL DISTRICT 33
3 Study on Development Potential around Bangalore International Airport 8. AEROSPACE PARK 35 9. MEDICAL, HOSPITALITY & ENTERTAINMENT 38 9.1. MEDICAL TOURISM HUB 38 9.1.1. NARAYANA HRUDAYALAYA SUPER SPECIALITY HOSPITAL 38 9.2. BANGALORE TURF CLUB 39 9.3. UPCOMING HOTEL PROJECTS AROUND DEVANAHALLI 40 10. RESIDENTIAL COMPLEXES 42
4 Study on Development Potential around Bangalore International AirportBANGALORE – THE GROWING METROPOLIS
5 Study on Development Potential around Bangalore International Airport1. BANGALORE – THE BURGEONING METROPOLIS Karnataka, located in the southern part of India, is the ninth most populated State in India and is divided into 29 Districts with a total area of 191,791 sq km that accounts for 5.83 per cent of Indias geographical area. The State is bordered by the Arabian Sea to the West, Goa to the Northwest, Maharashtra to the North, Andhra Pradesh to the East, Tamil Nadu to the Southeast, and Kerala to the Southwest. Karnataka State is extending approximately 700 km along the North ‐ South direction and 400 Km approximately in the East ‐ West direction. Bangalore is the administrative and financial capital of the State. With an economic growth of 10.3%, Bangalore is one of the fastest growing metropolises in Asia. Bangalore population has been growing at a rate of 3.25% per year in the last decade. With sobriquets such as Silicon Valley, Garden City and Pensioners Paradise, the city has been able to retain its traditional charm, despite the onslaught of modernism. Bangalore’s unique advantage also emanates from the mature and thriving ecosystem that supports the IT and ITES sector. Apart from strong education system that is a continuous source of quality manpower and industry friendly policies, the existence of complementary and supplementary industries also makes Bangalore the fourth largest IT cluster in the world.1.1. BANGALORE ‐ INDUSTRY PROFILE Bangalore is the Information Technology (IT) & Bio‐technology (BT) capital of India. Over 2,000 IT & IT Enabled Services (ITES) companies, including more than 100 Fortune‐500 companies have established their operations in Bangalore generating IT & ITES exports of around INR 700 billion (US$ 16.3 billion) and directly employing over 650,000 professionals.
6 Study on Development Potential around Bangalore International Airport Some of the prominent Fortune‐500 companies having operations in Bangalore are General Electric, Toyota, ING, Microsoft, Intel, Citigroup, IBM, HP, Dell, Societe Generale, TESCO, CISCO, AXA, Sun Microsystems, HSBC, Accenture, Motorola, Flextronics, 3M, Honeywell, Siemens, Bosch, Tyco, Astra Zeneca, ABB, Alcan, JP Morgan Chase and Goldman Sachs. Prominent Indian IT&ITES companies like Infosys and Wipro have their headquarters in Bangalore, while Satyam & TCS have major operations in the city. Annual disposable income of the professionals employed in IT&ITES sector at Bangalore is estimated to be around INR 120 billion (US$ 2.79 billion) per annum. Bangalore is home to around 200 Bio‐tech companies (more than 50% of Bio‐tech companies in India), which are growing at 40% p.a. and accounting for more than 60% of total BT exports from India. Over the past few years, Bangalore is emerging as one of the major Medical Tourism destinations in the world due to availability of tertiary and quaternary hospitals of international standards with significant cost advantage. Over 200,000 medical tourists visited India for medical treatment to the tune of US$ 600 million in 2007, which is expected to increase to US$ 2 billion by 2012. Apart from IT & ITES sector, Bangalore and its surroundings house manufacturing facilities of Toyota, Volvo, Tyco, Bosch and other large & medium scale industries in various industrial areas in and around Bangalore. Presently, IT & ITES companies are concentrated in and around Central Business District, East Bangalore (Whitefield, International Tech Park Bangalore (ITB) developed by Ascendas), South‐East Bangalore (Electronic City spread over 440 acres, Sarjapur‐Outer Ring Road). However, with the International Airport becoming operational near Devanahalli (40 kms North of Bangalore), major real estate projects and developments are witnessed between Bangalore city and new International Airport.
7 Study on Development Potential around Bangalore International AirportBANGALORE INTERNATIONAL AIRPORT
8 Study on Development Potential around Bangalore International Airport2. BANGALORE INTERNATIONAL AIRPORT Bangalore International Airport (BIA) is an international airport serving the city of Bangalore (Bangalore), Karnataka, India. The airport is located 4 km south of Devanahalli, 40 km from the central business district of Bangalore and 30 km from the Bangalore City Railway Station. The BIA covers about 4,000 acres of area. It has replaced the old HAL Bangalore International Airport. Construction of the airport began in July 2005, after a decade long postponement. It was expected to be inaugurated on 30 March 2008 but due to delays in air traffic control (ATC) services, it started its operations on the night of 23 May 2008, just before midnight. The airport handled about 9.3 million passengers and had air traffic movements (ATM) of about 280 per day in the year 2009. The airport is expected to handle 17 million passengers in the year 2015.The airport is host to 9 domestic airlines and 19 international airlines connecting the city to about 50 destinations across India and the world.2.1. BANGALORE INTERNATIONAL AIPRORT‐ FEATURES2.1.1. DESIGN AND FACILITIES The passenger terminal is a single, fully four‐level building capable of accommodating international and domestic operations. The basement houses the retail storage, rest areas and services. The arrival and departure areas are separated vertically with a
9 Study on Development Potential around Bangalore International Airport modern, simple, straight‐ahead flow system. The terminal is designed for ease of operation and minimum maintenance. The total floor area is approximately 171,000m² (1,840,000ft²). The terminal building is designed to accommodate 3,000 passengers at peak times. The design reflects the best industry practice and caters for 24‐hour operations, under all weather conditions. All facilities meet IATA standards. The airport can handle 14 million passengers a year with 27 aircraft movements an hour. Common‐use terminal equipment (CUTE) enabled check‐in counters: 117 and 66 self check‐in counters. The airport has 40gates and 18 air bridges, including nine double arm and 19 remote bus bays. There are a total of 82 aircraft stands, all of which have a fueling pit. This is the first time that the parking stands in Indian airports have had fuelling pits. A car park for 4,000 cars was built in front of the terminal building at ground level. The airport currently has one runway, which can accommodate all types of aircraft including the Airbus A380. There are plans to build a second runway when the annual traffic of the airport reaches 18 million passengers a year which is currently estimated to reach around 2013‐2014. The runway, orientated 09/27, is 4,900m (16,076ft) by 45m (150ft) with light paved shoulders making it 60m (200ft). Bangalore International Airport also have a retail centre, a multi‐cuisine food court area, an adventure play area, and a day care facility for the children of the passengers.2.1.2. CARGO VILLAGE The airports cargo village, spread over 11 acres of land, began operations in early January 2009. It is expected to strengthen the commerce and trade in Bangalore, ensuring speedy clearances of import and export consignments from the cargo terminals at the airport.
10 Study on Development Potential around Bangalore International Airport An investment of about $2.5m (INR120m) has been made towards the facility, which was completed over a period of ten months. The facility will house 120 freight forwarders and 80 custom house agents.2.1.3. PARTNERS FOR AIRPORT SERVICES Bangalore International Airport is the first airport in India to operate under a truly open‐ access model. This allows every qualified fuel supplier to use the facility against a fixed throughput fee and allows airlines to get the best fuel prices available in the market. BIAL has selected its strategic partner for the new airports aviation fuel facility. The consortium is Indian Oil / Indian Oiltanking / Skytanking. Indian Oil is the largest oil company and also the largest aviation fuel company in India. Skytanking is a major independent jet fuel handling company and operates various aviation fuel facilities worldwide, especially in Europe and the United States. It is owned by the Hamburg‐ based company Marquard and Bahls. Indian Oiltanking is a 50/50 joint venture between Indian Oil and Marquard and Bahls. Each party holds one third in the equity of the consortium. The airport was opened with the capacity to handle 11‐12 million passengers a year and 27 aircraft an hour. BIAL has also selected catering partners. These are LSG Sky Chefs and Taj SATS. Each of the selected consortiums is responsible for the design, construction, finance and operation of the flight kitchen at the new Bangalore International Airport. The combined investment is over $14m (INR700m) and the duration of the contract is 15 years. BIAL may award a third license for air catering at a later date.2.1.4. ROAD AND RAIL INFRASTRUCTURE As the new airport is 40km (25 miles) outside the city, a new high‐speed rail link, is being planned to connect the city to the airport. The various road and rail connectivity means are as follows:
11 Study on Development Potential around Bangalore International Airport NH‐7 CRS PRR Mono BIA BMIC rail HSRL Metro • NH‐7 to BIA is 6‐lane divided carriageway. NHAI is in the process of widening the NH‐7 from existing 6‐lanes to 8‐lanes, which can sustain higher traffic due to airport expansion and expected real estate developments on either sides of the NH‐7. • Bangalore Metro Rail covering a length of around 33 kms spread over the North‐ South and East‐West Corridors is under construction by Government of Karnataka at an estimated project cost of INR 64 billion (US$ 1.5 billion). The project is expected to be completed by 2010‐11. • In order to ensure fast and easy connectivity from Bangalore City Centre to the International Airport, Hi‐Speed Airport Rail link of around 34 kms from CBD to the Airport is under development, which will enable passengers to reach the Airport around 25 minutes.
12 Study on Development Potential around Bangalore International Airport • Monorail is also planned for development to serve as feeder lines to Metro • Commuter Rail system enabled to connect Devanahalli with Yeshvantpur via Yelahanka BIA • Bangalore‐Mysore Infrastructure Corridor (BMIC) Project comprising of construction of a 6‐lane tolled expressway between Bangalore and Mysore, development of 5 integrated townships, power plant, tolled ring roads around Bangalore to ensure fast and easy connectivity between the 2 cities and commercial development along the corridor is under implementation on PPP basis. • Government of Karnataka is developing the Peripheral ring Road (PRR) as 8‐lane expressway along the periphery of Bangalore for a total road length of 109 km.
13 Study on Development Potential around Bangalore International Airport Bangalore Metropolitan Transport Corporation runs eleven bus routes from locations in the city to connect to the new airport. The airport can be reached through Hebbal via Bellary Road, through NH‐Yelahanka people can also reach BIAL through Yelahanka via Vidyaranyapura where traffic is less congested. BMTC has 46 Volvo buses plying to the airport, and the number of buses on each route ensures a frequency of at least one every 30 minutes. Official transportation by BIAL: • MeruCabs and Easycabs for taxi services • Hertz and Akbar Travels for luxury transport services • BMTC Vayu Vajra A/C Volvo buses • BMTC Suvarna and Vahini non A/C buses The Indian railway authority is also planning to construct a railway terminal at the airport to run a special shuttle from Cantonment railway station to the new airport.
14 Study on Development Potential around Bangalore International Airport2.1.5. BANGALORE INTERNATIONAL AIRPORT AREA PLANNING AUTHORITY (BIAAPA) The airport is expected to act as regional hub for global connectivity and would accelerate infrastructure & real estate development in and around the airport. As part of BIA project, a Special Economic Zone and commercial developments are proposed within the Airport. BIA and DBP falls under the jurisdiction of Bangalore International Airport Area Planning Authority (BIAAPA) formed by Government of Karnataka to ensure organized development of an area of 985 sq.km comprising part of Bangalore North, Devanahalli, Dodaballapur taluks. Bangalore International Airport at Devanahalli is to be surrounded by some of the most eco‐friendly settlements and no development will be allowed on the natural river valleys in the area, as per BIAAPA. This is despite the fact that there will be greater population pressure in the area. According to the Outline Development Plan (ODP) notified by the Bangalore International Airport Area Planning Authority (BIAAPA) ‐ the primary land‐use sanctioning authority for the area, no development will be allowed to destroy the natural river valley network in Doddaballapur, Devanahalli and Vijayapura in the outskirts of the city. BIAAPA is also proposing to mandate rainwater harvesting in the airport, as water is one resource that the region and its residents are short of. The airport area covering three towns and 347 villages would ensure that the entire course of water resources and catchment areas are maintained. The ODP, projecting land‐use zoning in the next 15 years, also proposes separate sewage treatment plants for each of the major towns. It was expected that the population in the area would from 2,000 to over 10,000 by the time the airport was finished in 2008, and the water resources
15 Study on Development Potential around Bangalore International Airport required for this additional population would be 90 to 100 million litres of water a day. Clearly in these areas careful planning is required to allocate and conserve resources. The proposed growth of population and economy as per CDP is expected to generate high travel demand.
16 Study on Development Potential around Bangalore International Airport PROPOSED DEVELOPMENT
17 Study on Development Potential around Bangalore International Airport3. PROPOSED DEVELOPMENT Devanahalli, with enhanced connectivity, is emerging as a sister city to Bangalore with major investments pouring in for development. A cumulative investment of close to Rs. 1,15,000 crore worth would develop this once sedate location booming with activity to compete with Bangalore in terms of business and social life. And this is apart from the investments coming in from the hospitality industry and the entertainment sector, which is expected to prop up this place as an ideal social location in addition to an industrial hub. The developments proposed around the Bangalore international airport are categorized as follows: • Information Technology / Information Technology enabled services & Biotechnology • Special economic zones
18 Study on Development Potential around Bangalore International Airport • Residential complexes such as real estate development • Hospitality and entertainment • Aero‐Industry • Medical hub • Finance and Business districts The State government has identified the area in Devanahalli taluk where about 10,000 acres of land would be acquired to set up the Information Technology Investment Region (ITIR). Also among the major projects reported to have received, the Udyog Mitra clearance for the Aero SEZ (special economic zone), an aviation hub in Devanahalli, is expected to see major US civil and military aviation companies as well as the European Aeronautics and Defence Systems (EADS) pump in up to Rs. 11,700 crore as investment. The Indian initiatives at the SEZ would see Rs. 666 crore of investment from Sobha Nadathur Aerospace Pvt Ltd (Rs. 200 crore) and Dynamatic Technologies, manufacturers of hydraulic equipment (Rs. 466 crore).3.1. MOUs SIGNED AT GLOBAL INVESTORS MEET The Global Investors Meet (GIM) was held in Bangalore Karnataka for 2 days on June 4 and June 5, 2010. During the meet 413 MoUs (Memorandum of Understandings) were signed of value Rs 4,73,382 crore. The details of the MoUs signed during the GIM for the projects located around Bangalore International Airport are set out in the table below.S No Company Project Location Proposed Employment investment generation (Rs. Crores)1 Narayana To set up 5000 Bed Super Singahalli, 990 14,600 Hrudayalaya Speciality Hospital, Star Bandikodigeh Pvt. Ltd Category Hotel and Service alli & Bagalur Apartments2 Shell To set up Technology KIADB 1,376 1,200 Technology Centre for Oil & Gas related Hardware
19 Study on Development Potential around Bangalore International Airport India Pvt.Ltd activities Industrial Area, Devanahalli3 Hindustan To establish a unit for Aerospace 2,095 1,631 Aeronautics manufacture of “TPE 331 SEZ, Limited Engine and Engine Devanahalli (HAL) components, Ring Rolling, Fan cases, Welded Structural assemblies, Maintenance, Repair and Overhaul of Civil Aircraft / Engines and Manufacture of Helicopters”4 BEML To manufacture Aircraft Bangalore 316 235 Limited Components / Assemblies International and MRO Activites related Airport, to Aerospace Applications Devanahalli at Aerospace SEZ5 Dynamatic To manufacture Aerospace KIADB 466 2,100 Technologies Components Aerospace Limited Industrial Area, Devenahalli6 IFCI To establish a Financial City Devanahalli 997 4,300 Infrastructur Industrial e Area Developmen t Limited7 Trishul To set up 5 Star Hotel, Hebbal 119 2,100 Developers Office Space & Service Apartments8 City View To set up Hotel, Office Bellary road 971 760 Bangalore space and Serviced Properties Apartment Private Limited9 Healthcare Comprehensive Cancer Devanahalli 137 1,000 Global Treatment Centre Enterprises Ltd10 Tata Elexi Hardware Design And Hardware 486 8,683 Development Park, Devanahalli
20 Study on Development Potential around Bangalore International Airport INFORMATION TECHNOLOGY,INFORMATION TECHNOLOGY ENABLED SERVICES & BIOTECHNOLOGY
21 Study on Development Potential around Bangalore International Airport4. INFORMATION TECHNOLOGY, INFORMATION TECHNOLOGY ENABLED SERVICES & BIOTECHNOLOGY With Bangalore being home to some of the most high tech industries in India, Karnataka government has initiated the process of creating the third information technology (IT) hub in Bangalore city near its new airport at Devanahalli with an investment of Rs 1,00,000 crore. The city already has two technology parks located in south and southeast ‐ Electronic City, and International Tech Park Ltd. The new hub will come up in the northeast part of the city. The proposed developments around Bangalore International Airport are elucidated in the following sections.4.1. INFORMATION TECHNOLOGY INVESTMENT REGION (ITIR) The proposed ITIR would be specifically delineated investment region with a minimum area of around 40 Sq.kms. (about 10,000 acres of land),which may include Special Economic Zones, Industrial Parks, Export oriented units, Free trade and Warehousing zones. The ITIR would be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services, with excellent infrastructure. It is located at a distance of 15 km from Bangalore International Airport. It would be situated at the Nandi foothills near Muddenahalli, Kanivenarayanapura, and Chikballapur. The project has received final central and state cabinet approval on January 28th, 2010 and is under development.
22 Study on Development Potential around Bangalore International Airport The ITIR is one of the largest infrastructure projects in Karnatakas history. Total cost is expected to be one lakh crore rupees ($22 Billion). The initiative will provide direct employment to 1.2 million people and indirect employment to 2.8 million. Development would involve a Centre‐State partnership in conjunction with private partners. The region would be developed as an integrated township through public private partnership. The township will have residential areas, schools and other public utilities, and will include environmental protection mechanisms. Basic infrastructure such as road, rail and telecommunication links would be provided by the Centre. The State governments would provide physical infrastructure and utilities, including power, water, sewerage and effluent treatment facilities. The Karnataka State Electronics Development Corporation (KEONICS) has recently issued Expression of Interest (EOI) for developing the region. 55 multinational IT companies including Infosys, Wipro, TCS, and Cognizant have signaled an interest in joining.4.1.1. POLICY FOR INFORMATION TECHNOLOGY INVESTMENT REGIONS (ITIR) The ITIR scheme was notified by the Union Government in May 2008 to provide readymade and developed infrastructure to potential investors in the IT sector. The policy envisages that State governments would ensure the provision of physical infrastructure and utilities, including power, water, roads, transportation, sewerage and effluent treatment facilities within notified ITIRs. In lines with this policy, a separate legislation would be enacted by the state government to govern the proposed ITIR area. ITIRs were conceptualized keeping in view the need to boost the growth of both IT/ITES and Electronic Hardware Manufacturing (EHM) Units. The regions would be a combination of IT/ITES and Electronics Hardware Manufacturing Units; Public uitilities, residential area, social infrastructure and administrative services. Such regions could include new integrated townships, SEZs, industrial parks etc. In the ITIR, there would be a clear delineation between the IT/ITES areas and Electronic Hardware Manufacturing areas. The ITIRs would generate direct and indirect employment during the construction and operational phases.
23 Study on Development Potential around Bangalore International Airport Each ITIR is expected to be a specifically notified investment region with minimum area of 40 sq.km planned for IT/ITES and EHM Units. The minimum processing area will be 40% of the total area of the ITIR. The ITIRs will be developed in a phased manner. The State Government would ensure that all physical infrastructure and utilities within its jurisdiction (power, water, roads, transportation, sewerage and effluent treatment facilities) are provided. The Central Government will facilitate development of National Highways, Airport and Rail links to the ITIRs. The Public‐Private Partnership (PPP) route is advocated for the development of ITIRs. State Government would select the developers/co‐developers through a transparent process.4.2. OTHER PROPOSED DEVELOPMENTS Infosys have planned to invest Rs. 710 crore for 12,000 seat software developments centre over 40 acres in Devanahalli Industrial Area. Wipro have also planned to come up with IT/ITeS SEZ in Devanahalli taluk, employing 15,000 people, at an investment of Rs. 477 crore. The other investment proposals approved by the authority are as follows: Investment in Land Company Name Product Rs. Crores (acres) Blue Hill Informatics SEZ for IT/ITES 506.9 112 Pvt. Ltd Itasca Software SEZ for IT/ITES 1130 325 Development Pvt. Ltd TCS Ltd SEZ for IT/ITES 500 100 Indiland SEZ IT / ITES SEZ 443.5 25 Projects (Bangalore) Pvt. Ltd., Cornerstone Info‐ 1600 200 Shelters Pvt. Ltd. Tech/Hardware/Bio‐ Tech Park with common facilities Ranka & Shah SEZ for IT/ITES 430 33.7 Developers Pvt. Ltd. Chandra Developers IT/ITES Park 459.98 25 Pvt. Ltd. ETL Infrastructure IT Park ‐ Disaster 993 15 Services Ltd. Recovery Facility Centre
24 Study on Development Potential around Bangalore International Airport Investment in Land Company Name Product Rs. Crores (acres) Wipro Limited IT/ITES SEZ 477 40 Just Dial Pvt. Ltd. IT/ITES – BPO & 445.08 15 Software Development
25 Study on Development Potential around Bangalore International AirportDEVANAHALLI BUSINESS PARK
26 Study on Development Potential around Bangalore International Airport5. DEVANAHALLI BUSINESS PARK One of the biggest projects coming up adjacent to the Bengaluru International Airport (BIA), the Devanahalli Business Park (DBP) is expected to attract an investment of $2.2 billion over the next five to seven years. Karnataka State Industrial Investment & Development Corporation Limited (KSIIDC), at the behest of Government of Karnataka (GoK), is developing DBP on the site of around 413.65 acres owned by KSIIDC along the National Highway‐7 (NH‐7) and adjoining the northern boundary of Bengaluru International Airport (BIA) near Devanahalli, around 35 kms north of Bangalore city.
27 Study on Development Potential around Bangalore International Airport Once completed, nearly 2.5 lakh people are expected to work or visit the DBP. Among those that have been planned in the park include multi‐speciality hospitals, special economic zones, entertainment area, star hotels and others. As per the suggested land use plan, the DBP will boast of two IT & ITeS parks/SEZs on 50 acre plot, a central business district on 35 acre plot, besides other facilities such as three multi‐speciality hospitals, finance district, retail & entertainment, office complex, aviation academy and other utilities. A 10‐year tax and duty exemptions on operations of both the SEZ developer and SEZ occupants has been envisaged. The suggested land use plan for the business park as per authority is as follows: DBP ‐ Land use plan Light Goods Manufacturing/ Assembly Multi‐Specialty Hospitals Finance District 8.1% Retail & Entertainment 8.4% 8.1% 3.9% 5‐star Hotel 3.2% CBD Office Complexes 11.3% 6.9% Aviation Academy 3.2% IT & ITES Parks/SEZs Vehicle Parking spaces 16.2% 0.9% Roads & Utilities 20.6% Greenery 9.2% Area (in Description acres) IT & ITES Parks/SEZs (2 Nos.) 50 Central Business District 35 Multi‐Specialty Hospitals (3 Nos.) 26 Finance District 25 Light Goods Manufacturing/ Assembly 25 Retail & Entertainment 12 5‐star Hotel 10 Office Complexes (2 Nos.) 21.23 Aviation Academy 10 Vehicle Parking spaces 2.73
28 Study on Development Potential around Bangalore International Airport Area (in Description acres) Roads & Utilities 63.74 Greenery 28.37
29 Study on Development Potential around Bangalore International AirportAEROTROPOLIS – AIRPORT CITY
30 Study on Development Potential around Bangalore International Airport6. AEROTROPOLIS Aerotropolis is a word that is created out of two words – airport, and metropolis. Like SEZ, PCPIR or Chemical Hub, it is another new term that we must familiarize ourselves with in order to understand the neoliberal onslaught on the masses. In short, it is an airport township. At its heart there would be an airport, which would be surrounded by residential units, golf courses, hotels, multi‐story residential high‐rises, malls, etc. These are to be the new nerve centers of the modern civilisation. An Aerotropolis is a city in which the layout, infrastructure and economy are centered around a major airport. Experts in the field are of the opinion that airports will shape business location and urban development in this century as much as seaports did in the 18th Century, railroads in the 19th Century and highways in 20th Century. The Airport City proposed to be developed would spread over 215 acres and witness over a million people live and work in BIA. BIAL envisages the Airport City to be a flourishing destination in itself, wherein people will not only board/alight from flights but also relax, do business and shop. The City would have more hotels complimenting one another, along with destination retail, serviced apartments, office park and a software campus.6.1. CONNECTIVITY & TRANSPORT INFRASTRUCTURE The City can be accessed by a ringed network transport system consisting wide three lane roads, dedicated perimeter bus lanes with bus stands located at strategic points with over‐bridge/underpass pedestrian connections. It will have space to park over 40,000 cars. The Airport City would be connected to the proposed high‐speed rail link and the road expressway from the central business district, M G Road.6.2. AEROTROPOLIS ‐ ZONES It would comprise three prime zones of development viz, Downtown, Business Unit and Technology Centre. Each area is positioned differently.
31 Study on Development Potential around Bangalore International Airport6.2.1. DOWNTOWN Closest to the terminal building, Downtown will be positioned as a typical urban entertainment hub spread over approximately 39 acres of land. It will house a shopping area with various retail formats, entertainment facilities, offices and hospitality facilities. An ‘Airport Visitor Centre’ is also planned opposite the Downtown area.6.2.2. BUSINESS UNIT Lying between the Downtown area on the east and the middle area on the west, Business Unit will be built on approximately 46 acres of land. It will house a business‐ park for premium office space and consist of support retail, a 3 star and 4 star hotel.6.2.3. TECHNOLOGY CENTRE To promote the concept of ‘Bengaluru International Airport’ as a business address, the Technology Centre spread over 90 acres and situated just a few minutes drive from the airport terminal building, is expected to be a hub for global multinational conglomerates that will have the option of establishing high‐end research campuses for highly qualified personnel engaged in cutting edge development. The Technology Centre is part of a multi‐product SEZ, which has recently been formally approved by the government of India. Airport Hotel: Avoiding gridlocking the central business district of Bangalore, the busy traveller and the executive will have easy access to a hotel at the BIA. Constructed by a consortium of Larsen and Toubro and the Oberoi Group under the ‘Trident’ brand at a cost of Rs 250 crore, the hotel is located within walking distance from the terminal building. The Airport City will create one lakh jobs for qualified people. It will strengthen and foster the economic growth of the City and the State
32 Study on Development Potential around Bangalore International Airport GLOBAL FINANCIAL DISTRICT
33 Study on Development Potential around Bangalore International Airport7. GLOBAL FINANCIAL DISTRICT To promote the State as a global investment destination, the government is in talks with banking giants to set up a Global Financial District near Devanahalli, spread over 150 acres, which will also house a residential township. The district would provide specialized services for banks, insurance companies, stock exchanges and others players in the financial services sector. Some of the features of this district are, • An investment of about Rs. 1,000 crore planned in 150 acres of land • 45 banks have shown interest to have their offices in the hub • The project would include a township for the employees of the institutions in the district • India Infrastructure Finance Corporation has come forward to set up the hub in association with the banks that show interest in investing on the project This hub, expected to be ready in the next 18 months, will house corporate arms of all leading banks in India, insurance companies and financial companies that deal with needs of industries. Industrial Finance Corporation of India (IFCI) has planned to invest Rs. 1,000 crore to set a base in the proposed global financial district in 50 acres of area out of total 150 acre district.
34 Study on Development Potential around Bangalore International Airport AEROSPACE PARK
35 Study on Development Potential around Bangalore International Airport8. AEROSPACE PARK The park with facility for aircraft component manufacturing and accessories was being developed near the airport in 1000 acres area. About 250 acres of the land will be earmarked for a special economic zone (SEZ) in the aerospace hub. The Aero SEZ is being worked out in collaboration with the US Aerospace Supplier Development Mission to India to introduce American companies to Indian joint‐venture groups, industry representatives, and Western original equipment manufacturers based here. The SEZ would also introduce the US companies to industry and government officials here to learn about opportunities they can exploit through various aerospace programmes. The aerospace park is being located adjacent to a 1,000 acre electronic hardware park and a 1,000 acre software park, which will enable the aerospace industry to leverage the strengths of the IT sector. The park would include an aviation MRO‐related activities (maintenance, repair, and overhaul) and 250 acre of an export‐oriented aerospace SEZ.
36 Study on Development Potential around Bangalore International Airport The proposed projects approved by the authority are as follows: Company Product Investment Land (acres) (crores) Bangalore Airport based 3384.65 279 International Multi Product Airport Ltd. SEZ Hindustan TPE 331, Engine 2095 150 Aeronatuics Ltd. and Engine components Ring Rolling, Fan cases, Welded Structural Assemblies, Maintenance & Repair Dynamatic Aerospace 465.8 2100 technolgies Components Also among the major projects reported to have received the Udyog Mitra clearance for the Aero SEZ (special economic zone), an aviation hub in Devanahalli, is expected to see major US civil and military aviation companies as well as the European Aeronautics and Defence Systems (EADS) pump in up to Rs11,700 crore as investment. The Indian initiatives at the SEZ would see Rs666 crore of investment from Sobha Nadathur Aerospace Pvt Ltd (Rs200 crore) and Dynamatic Technologies, manufacturers of hydraulic equipment (Rs466 crore).
37 Study on Development Potential around Bangalore International Airport MEDICAL, HOSPITALITY & ENTERTAINMENT
38 Study on Development Potential around Bangalore International Airport9. MEDICAL, HOSPITALITY & ENTERTAINMENT9.1. MEDICAL TOURISM HUB Karnataka provides phenomenal tax benefits for healthcare investors. With 39 medical colleges and a prestigious university like Rajiv Gandhi University of Health Sciences, there are adequate human resources. Favourable weather is another big factor for most medical specialists to stay on in Bangalore. As per the study conducted by National Population Stabilisation Fund and National Informatics Centre, Bangalore would become second in healthcare services in near future. According to the Medical Education minister of the state, an exclusive health city would be developed at the Bengaluru International Airport through PPP in future. Karnataka State Tourism Development Corporation (KSTDC) would develop hub in 300 acres of land with facilities like private hospitals, diagnostic centers, Ayurvedic resorts and centers offering alternative systems of medicine The projects approved by the authority are, • Narayana Hrudayalaya Ltd to invest Rs.990 crores in 30 acres • Health care global enterprises ltd to set up Comprehensive Cancer Treatment Centre, Centre of Excellence in Oncology, Nursing College and Training Centre with an investment of Rs.136 crores spread across 6 acres of area9.1.1. NARAYANA HRUDAYALAYA SUPER SPECIALITY HOSPITAL Narayana Hrudayalaya group has Narayana Health City at Bangalore covering 25 acres of land and Rabindranath Tagore International Institute of Cardiac Sciences and Rotary Narayana Nethralaya a Super Specialty Eye Hospital. It has also proposed to set up a super specialty hospital with following features: • Proposed investment – Rs.990 crores. • Project Details – to set up 5000 Bed Super Specialty Hospital, Star Category Hotel and Service Apartments.
39 Study on Development Potential around Bangalore International Airport • Location – KIADB Industrial Area, Near Bangalore International Airport (Singahalli, Bandikodigehalli & Bagalur), Bangalore North Taluk, Bangalore District. • Employment Generation – 14,600 • Signatory to MOU from Govt – Principal Secretary, Medical Education9.2. BANGALORE TURF CLUB The Karnataka Government has decided to shift the Bangalore Turf Club (BTC) located in the heart of the city to a new location, Chikkajala in Devanahalli taluk. Bangalore Turf Club with an investment of Rs. 350 crores has been planned to be set up in Devanahalli.
40 Study on Development Potential around Bangalore International Airport9.3. UPCOMING HOTEL PROJECTS AROUND DEVANAHALLI Zuri Hospitality India (Private) Ltd, Indian arm of the global Zuri Group promoted by a consortium of investors from the Middle East, will soon start work on a new hotel project at Devanahalli, near the new Bangalore International Airport. This 150 room five star hotel is being built at a cost of Rs 200 crore on a 6 acre plot and will be operational in the third quarter of 2011. Other hotel projects that are set to come up in this region include Oberoi at Bangalore International Airport, Hyatt Residency and Oberoi Luxury hotel in the Hebbal lake area, and Taj Airport Hotel and Holiday Inn at Devanahalli.
41 Study on Development Potential around Bangalore International Airport RESIDENTIAL COMPLEXES
42 Study on Development Potential around Bangalore International Airport10. RESIDENTIAL COMPLEXES According to real estate consulting firm Cushman & Wakefield, prices in the Yelahanka‐ Devanahalli stretch, right immediately after the Bangalore International Airport project was announced, ruled around Rs 50 lakh to 3 crore per acre. At a time, when sale of residential units have apparently taken a hit due to high home loan interest rates, interest seems to be running high in properties being developed around Devanahalli area. According to a leading city‐based broking firm, which has a land parcel of 600 acres for sale in the region, the prices quoted by owners of these land banks range between Rs 25 lakh and Rs 1 crore an acre. Multiple premium residential complexes coming up in and around Devanahalli are expected to bring ina total investment of Rs. 1500 crores. QVC Realty is aslo coming up with ‘QVC Hills’, which is a residential community, spread over 62.5 acres located at the foothills of Nandi Hills in North Bangalore. Biodiversity
43 Study on Development Potential around Bangalore International Airport Conservation (India) Ltd has on offer the small but much‐celebrated residential BCIL Collective. BCIL has laid its bets on this area, with two more ambitious eco‐projects — both residential — which are on the anvil and will be launched later this year. Mantri Developers has upcoming projects in Hennur, Jakkur and Hebbal that are yet to be announced. Prestige Estate Projects Pvt Ltd has recently launched a premium development, ‘Prestige Golf Shire’ on the foothills of Nandi Hills. Prestige Estates Projects Pvt Ltd will shortly be launching a villa development —Prestige Oasis with 182 independent homes spread on 33.5 acres of land. They are also marketing an apartment complex, Prestige Wellington Park, and Prestige Kensington Gardens is under construction. The MetroCorp Group, one of the early developers to invest in the potential of North Bangalore, has its flagship project MetroCorp Nirvana, set the trend for luxury residential townships. Riding on this overwhelming success, the MetroCorp Group, in partnership with Singapore’s Jurong International Group, has a pipeline of projects in North Bangalore that cater to value‐for‐money, semi‐luxury and luxury segments. According to Ali Vakil, Director, Vakil Housing Development Corporation Pvt Ltd, North Bangalore still has tremendous potential left, because the upcoming airport still lacks sufficient support infrastructure. In the next few years, this area will witness significant boom in terms of new structures, employment and support services.