KNNL - Malaprabha - Final Feasibility Report

Development of Tourism related
Infrastructure near Malaprabha

Dam, Belagavi
Final Feasibility Report
March 2015
INFRASTRUCTURE Possibilities Unlimited.
Submitted to:
Infrastructure Development Corporation (Karnataka) Limited
#9/7, K.C.N Bhavan, Yamunabai Road, Madhavnagar Extension
Off Race Course Road, Bangalore 56 0001
Karnataka Neeravari
Ph: +91-80-43448000. Fax: +91-8043448001
Website: www.ideck.in
Nigam Limited (KNNL)
DEVELOPMENT OF TOURISM RELATED INFRASTRUCTURE NEAR
MALAPRABHA DAM, BELAGAVI Project Feasibility Report
Table of contents
1. Introduction ....................................................................................................... 6
1.1 Background .............................................................................................................................. 6
1.2 Objectives ................................................................................................................................ 6
1.3 Approach and Methodology .................................................................................................... 7
2. Regional Profile................................................................................................. 9
2.1 Location and Regional Settings ................................................................................................ 9
2.1.1 Demographics .................................................................................................................... 10
2.2 Regional Connectivity ............................................................................................................ 11
2.3 Economy ................................................................................................................................ 12
2.4 Education ............................................................................................................................... 12
2.5 Tourism .................................................................................................................................. 13
3. Site Analysis ..................................................................................................... 16

3.1 Introduction ........................................................................................................................... 16
3.2 Location ................................................................................................................................. 17
3.3 Site features and Surroundings ............................................................................................. 18
3.4 Connectivity ........................................................................................................................... 18
3.5 Accessibility to key locations ................................................................................................. 19
3.6 Development Control Regulations ........................................................................................ 19
3.7 SWOT Analysis ....................................................................................................................... 20
4. Perception Analysis and Consultations .................................................. 21

4.1 Introduction ........................................................................................................................... 21
4.2 Perception Survey Findings ................................................................................................... 21
5. Identification of Project Facilities ............................................................ 26

5.1 Competition Analysis ............................................................................................................. 26
5.1.1 Hospitality Segment ........................................................................................................... 26
5.2 Proposed Facilities ................................................................................................................. 29
4.3 Demand Assessment ............................................................................................................. 30
4.4 Fee Structure ......................................................................................................................... 32
4.5 Viability Assessment .............................................................................................................. 33
5. Financial Feasibility Assessment .............................................................. 34

5.1 Area Assumptions .................................................................................................................. 34
Infrastructure Development Corporation (Karnataka) Limited Page 2

5.2 Costing Assumptions.............................................................................................................. 34

5.3 Estimated Project Cost........................................................................................................... 34
5.4 Financial Assumptions ........................................................................................................... 35
5.5 Operating Assumptions ......................................................................................................... 35
5.6 Sensitivity Analysis ................................................................................................................. 38
6. Project Structuring Options ........................................................................ 40

6.1 Review of different PPP Frameworks .................................................................................... 40
6.2 Proposed Structure ................................................................................................................ 41
6.3 Responsibility of the developer ............................................................................................. 42
6.4 Implementation Structure ..................................................................................................... 43
6.5 Risks assessment.................................................................................................................... 44
6.6 Types of Bidding..................................................................................................................... 44
6.7 Salient features of Instruction to Bidders (ITB) ..................................................................... 45
6.8 Salient Features of Draft Project Development Agreement (PDA) ....................................... 47
7. Way Forward.................................................................................................... 53
7.1 Critical Success factors........................................................................................................... 53
7.2 Way Forward ......................................................................................................................... 53

List of Tables
Table 1: Distance between Belagavi and key Tier-I cities in Southern India ........................................................... 9
Table 2: Distance between Dharwad and key Tier-I cities in Southern India ........................................................ 10
Table 3: Physical Features of Belagavi.......................................................................................................................... 10
Table 4: Demographic profile of Belagavi and Dharwad ........................................................................................ 10
Table 5: Features of the Project Site .............................................................................................................................. 18
Table 6: Boundary and Surroundings of the Project Site ........................................................................................... 18
Table 7: Infrastructure status at the Project Site .......................................................................................................... 18
Table 8: Distance of project site form key public transport nodes .......................................................................... 18
Table 9: Distance of Project Site from Important destinations .................................................................................. 19
Table 10: SWOT Analysis of project site ...................................................................................................................... 20
Table 11: Hospitality sector overview in Belagavi ...................................................................................................... 27
Table 12: Demand Drivers for Hospitality Segment ................................................................................................... 28
Table 13: Tourist Inflow statistics 2011 ...................................................................................................................... 28
Table 14: Tourist Inflow growth figures for the period of 2007-11 ....................................................................... 28
Table 15: Proposed facility in Hospitality segment .................................................................................................... 29
Table 16: Proposed Project Facilities ............................................................................................................................. 29
Table 17: Footfall Projections for Proposed Facilities ................................................................................................ 31
Table 18: Land-Use Mix for Proposed Facilities .......................................................................................................... 32
Table 19: Potential Clients/ Prospective Users for Proposed Facilities .................................................................. 32
Table 20: Fee Structure for Proposed Facilities ........................................................................................................... 33
Table 21: Viability Assessment of Proposed Facilities ................................................................................................ 33
Table 22: Area Assumptions ............................................................................................................................................. 34
Table 23: Assumptions for CAPEX ................................................................................................................................... 34
Table 24: Estimated Project Cost..................................................................................................................................... 34
Table 25: Financing assumptions ..................................................................................................................................... 35
Table 26: Assumptions for Revenues from facilities..................................................................................................... 35
Table 27: Assumptions for O & M expenses of each facility .................................................................................... 36
Table 28: Projections for Revenue and Operating Expenses .................................................................................... 37
Table 29: NPV of Revenues, Expenses and PAT .......................................................................................................... 38
Table 30: Project financial indicators ............................................................................................................................. 38
Table 31: Sensitivity Analysis ........................................................................................................................................... 39
Table 32: Review of different PPP frameworks........................................................................................................... 41
Table 33: Features of proposed DBFOT structure ....................................................................................................... 41
Table 34: Scenarios for Annual Payment ...................................................................................................................... 50
Table 35: Termination payments for Force Majeure Events and Event of Default ............................................... 51
Table 36: Force Majeure Events ...................................................................................................................................... 52

List of Figures
Figure 1: Tourism related Infrastructure ................................................................................................. 7

Figure 2: Approach to the project ......................................................................................................... 8
Figure 3: Belagavi and Dharwad districts in Karnataka .......................................................................... 9
Figure 4: Connectivity of Belagavi and Dharwad ................................................................................. 11
Figure 5: Malaprabha Dam in Belagavi .............................................................................................. 16
Figure 6: Renukasagar reservoir ......................................................................................................... 16
Figure 7: Location of project site ......................................................................................................... 17
Figure 8: Project site and key neighbouring cities ................................................................................. 17
Figure 9: Geographical distribution of Tourists ..................................................................................... 22
Figure 10: Purpose of Visit by the tourists ............................................................................................ 22
Figure 11: Mode of Travel ................................................................................................................. 23
Figure 12: Average Length of Stay ..................................................................................................... 24
Figure 13: Frequency of visit of tourists ............................................................................................... 24
Figure 14: Catchment area of the project site ...................................................................................... 26
Figure 15: Implementation Structure .................................................................................................... 43
Figure 16: Types of Bidding ............................................................................................................... 44
Figure 17: Critical Success Factors ....................................................................................................... 53

1. Introduction
1.1 Background
Karnataka Neeravari Nigam Limited (KNNL) is a company set up by Government of
Karnataka (GoK) for planning, investigation, estimation, execution, operation and
maintenance of irrigation projects in the Krishna river basin of Karnataka. It is
responsible for protection and improvement of the environment, rehabilitation and
resettlement of the people affected by development of irrigation projects, promotion of
modern irrigation methods like sprinkler, drip, etc., use of new materials and
technologies in building irrigation projects and promotion of schemes for utilizing water
from the irrigation projects built by the Company. KNNL also supervises the works of
Malaprabha and Gataprabha- Command Area Development Authority (M & GP
CADA).
Infrastructure Development Corporation (Karnataka) Limited (iDeCK) has been providing

financial and legal advisory services for PPP projects for the past fourteen years to
several government and private sector agencies, across the country, in the areas such as
project feasibility studies; development of sectoral policies and strategies; transaction
advisory services including project structuring for private participation, bid
documentation, project marketing to prospective bidders and assistance in negotiation,
execution of contractual documents for PPP infrastructure projects and capacity building
in various sectors including tourism, urban (water, solid waste management and
commercial infrastructure), transport (roads, railways, ports, airports), industrial, energy
and power.
KNNL has appointed iDeCK for assisting them in conducting a feasibility study for
developing tourism related infrastructure at the identified site.
KNNL is in possession of around 3 acres (approx.) of land near Malaprabha Dam where
it intends to develop tourism related infrastructure under an appropriate Public Private
Partnership (PPP) framework to boost the tourist footfalls in the region.
1.2 Objectives
In the upcoming Karnataka Tourism Policy 2014-19, a large emphasize has been laid on
enhancing hospitality services and standards, promoting innovative developments and
rejuvenation of older tourist attractions, with the aim of offering visitors the experience
that will commensurate with higher expectations.
With similar objectives, KNNL intends to develop tourism related infrastructure near
Malaprabha Dam to:
i. Attract footfalls, encourage extended stays and provide a wholesome experience

to the tourists.

ii. Encourage entrepreneurship and livelihood opportunities for the locals.

iii. Encourage and promote Private Sector Participation in the development of tourism
sector.
The tourism related infrastructure would be a combination of recreational and support

facilities such as:
Figure 1: Tourism related Infrastructure
1.3 Approach and Methodology

The Approach to the entire assignment is depicted in the flow chart below.

Figure 2: Approach to the project

2. Regional Profile
The project site is located beneath the

Malaprabha dam in Naviluteertha in Savadatti
taluk of Belagavi district. It is located 85 kms
from Belagavi city and 50 kms from Dharwad.
Since Belagavi is located between Maharashtra DHARWAD
and Goa, the place has acquired a unique

culture and heritage of its own. The area of the
district is 13,415 sq. km., which has been
divided into ten blocks, and the population is
4,778,439.
Dharwad district is situated in the western

sector of the northern half of Karnataka. The
area of the district is 4,263 sq. km., which has
been divided into five blocks, and the
Figure 3: Belagavi and Dharwad districts in Karnataka
population is 1,846,993. For centuries,
Dharwad acted as a gateway between the Malenadu region and the plains.
2.1 Location and Regional Settings

Belagavi is bounded on the west and north by Maharashtra state, on the northeast by
Bijapur district, on the east by Bagalkote district, on the southeast by Gadaga district, on
the south by Dharawad district and Uttar Kannada district, and on the southwest by the
state of Goa.
Dharwad is bound on the North by the district of Belgaum, on the East by the district of
Gadag, on the South by Haveri and on the West by Uttar Kannada district.
The table below highlights the distance of Belagavi from other Tier-I cities in Southern
India:
Table 1: Distance between Belagavi and key Tier-I cities in Southern India
Belagavi
City Distance (km)
Bangalore 540
Mangalore 460
Mysore 564
Panjim (Goa) 121

The table below highlights the distance of Dharwad from other Tier-I cities in Southern
India:
Table 2: Distance between Dharwad and key Tier-I cities in Southern India
Dharwad
City Distance (km)
Bangalore 430
Mangalore 380
Mysore 477
Panjim (Goa) 131
Source: Knight Frank India Pvt. Ltd. research
Belagavi district is also known as Malenadu or Rain Country and the vegetation here is
verdant green throughout the year, hence it is also known informally as the Bread
Basket of Karnataka. The following table represents the climate profile of the region:
Table 3: Physical Features of Belagavi
Climate Duration Temperatures
Summer Late March June 25C - 40C
Rainy June September 25 C to 23C
Winter November February 18 C to 26C
Source: Knight Frank India Pvt. Ltd. research
2.1.1 Demographics1
The project site is located in close proximity to the districts of Belgaum and Dharwad.
Both witness an average literacy rate of as high as 76%, marginally higher than the
state average of 75%2. With a total population of about 6.6 million, they account for
approx. 11% of the population of Karnataka. With a population figure of 4.8 million,
the district of Belgaum has witnessed a growth of 13.38% in 2011, from the
corresponding figures in 2001 and Dharwad recorded an increase in the population
figure of 15.13 % in 2011, compared to the figure in 2001. The table below highlights
the demographic profile of the region:
Table 4: Demographic profile of Belagavi and Dharwad
Literacy Rate
District Population (nos.)
(average)
Decadal Decadal
2011 2001
Growth Rate Growth Rate
Belagavi 4,778,439 13.38% 4,214,505 17.61% 80.45%
Dharwad 1,846,993 15.13% 1,604,253 16.68% 80.30%
Karnataka 61,095,297 15.67% 52,850,562 17.51% 75.36
1
Census 2011 report
2 Source: 2011 Census Provisional Figures

2.2 Regional Connectivity

The region is well connected through road network to the southern parts of Karnataka
viz-a-viz Bangalore, Mysore and Chennai. This is complemented by an equally good
connectivity by rail. Further, the region offers good connectivity via road and rail to
other important transportation nodes such as Belagavi, Hubli and Bagalkot.
The figure below highlights the existing rail, road and air network for the region:
Existing Road Network Existing Railway Network
Figure 4: Connectivity of Belagavi and Dharwad
Belagavi and Dharwad are well connected with the neighbouring cities and other parts
of the country by various means such as:
Air
The airport serving the region is the Belagavi Airport at Sambra, 72 km from the
project site on SH-20 (Karnataka). Also, Hubli Airport is located at a distance of
67 km from the project site. The closest International Airport is the Goa
International Airport at a distance of about 212 km.
Rail
Belagavi is on the main Indian Railways grid being part the of South-Western
Division and is well connected by rail to major destinations such as Bangalore,
Mysore, Mangalore, Pune, Mumbai, Bhaghya Nagar, Goa, New Delhi and
Chennai. The district has 23 railway stations on a railway line of approx. 226 km

passing through the district. Dharwad has 21 railway stations along the 151 km
long railway line passing through the district.
Road
Belagavi is connected by road via NH-4 (connecting Maharashtra, Karnataka,
Andhra Pradesh and Tamil Nadu) and 4A (connecting Karnataka and Goa). North
Western Karnataka Road Transport Corporation (NWKRTC) and Karnataka State
Road Transport Corporation (KSRTC) run buses to all the corners of Karnataka and
neighbouring states. Dharwad is connected by road via NH-4.
2.3 Economy
Agriculture forms the backbone of these districts with as many as 60-70% of the total
working population engaged in the agricultural sector. However, the region has also
witnessed the presence of few small to mid-scale industrial units. These include industries
from sectors such as engineering & castings, agro-based, etc. However, as mentioned
above, agriculture remains the main source of income and employment. Belgaum acts as
a trade centre for food grains, sugarcane, cotton, tobacco, oilseeds and milk products.
Sericulture is gaining prominence in the district with approximately 480 hectares under
Mulberry cultivation. Agriculture is the main resource of the district and Agro and Food
Processing Sectors are prominent for investment.
Rich deposits of Bauxite in Belgaum have led to the creation of Aluminium industries, such
as the Hindalco Aluminium Factory. The district is an important centre for manufacturing
of heavy machine tools and has over 200 foundries producing more than 70,000 tons of
automotive and industrial castings of ferrous base. The geographical advantage (as
Bangalore, Mumbai and Pune are easily accessible) has led to a major support of
Automobile and Aerospace Industries.
Agriculture is the mainstay of the economy of Dharwad. The district is famous for the
Dharwad Cotton Hybrid (DCH) variety of cotton. Apart from this, sugarcane, wheat,
variety of pulses and fruits like Alphonso mangoes and Guavas are also cultivated.
Dharwad is fast growing in industrial prominence with the setting up of a 30,000 unit
manufacturing facility for buses in 2009 which is a joint venture between Tata Motors
and Marcopolo of Brazil. Hero group is also contemplating making a large investment in
the region.
2.4 Education
Belagavi is an important
educational hub, consisting
of eight engineering
colleges, five medical
colleges, and some dental
colleges across the district.
The establishment of
the Visvesvaraya Technological University in 1998, the largest university in Karnataka
for technical education (B.E., M.Tech, MCA, MBA) with affiliation of more than 208
engineering colleges, raised the importance of Belagavi as a centre of education in
Karnataka. Basic degree colleges, nine polytechnic colleges and three law colleges are
among the other educational institutions. KLE, the Karnataka Lingayat Education Society,
and KLS, Karnataka Law Society, are two educational giants based in Belagavi.
From the late 1970s onwards, Belagavi began seeing a substantial increase in the
number of professional education institutions. While initially this was largely in the
medical and engineering fields, Belagavi today hosts institutions serving a number of
other professional streams as well. The impact of this growth has considerably changed
the cultural, linguistic and industrial profile of the city due to the influx of students from
across India.
2.5 Tourism
Belagavi is 502 km from Bangalore and 154 km from Panaji. Nestled in the foothills of
the Western Ghats, it enjoys a cool, salubrious climate and is surrounded by natural
beauty in the form of rivers, hills and dense evergreen forests.
A wide variety of historical sites, temples and churches exist in and around the city, most
notably the Kamala Basti fort, Kapileshwara temple (South Kashi), the hills of Vaijnath,
Ramtirth waterfalls, Sri Revanna Siddeshwara Temple at Hunshevari in the valleys of
Kakati, Siddeshwara Temple in Kanbargi and others.
Belagavi is a famous tourism magnet owing to the following attractions:
i. Belagavi Fort: It is an Ancient Architectural

monument where mosques and temples co-
exist in perfect harmony, though not much
of the orginal structure remains. The fort
was built in the 12th century A.D by the
local Ratta rulers. It was renovated and
built on by successive rulers who ruled
Belagavi from time-to-time. At the very
entrance, you will find two Shrines; One dedicated to Lord Ganpati and the other to
Lordess Durga. Safa masjid is one of the two mosques inside the fort and by far is
the best of the 25-30 mosques in the city. The minars, domes and Arches point to a
typical fusion of Indo-Sarcenic and Deccan styles of the Architecture. Two of the
circular pillars in the Jamia hall are said to be from the old temples. Some of them
have Kannada Inscriptions in Nagari Script,
while others have Persian script forming
exquisite calligraphic decorations.
ii. Gokak Falls: Located at a distance of 60 Kms

from Belagavi in Gokak Taluka, Gokak Falls is
a celebrated tourist centre in the district. These
falls have a height of about 170 feet. The
river Ghataprapha after winding a course of

a long route takes a leap of 52 meters, over a rocky bed 170 feet down. The falls
are famous for its spread and shape. The falls are horse-shoe shaped at the crest,
with a flood breadth of 177 metres. The period from June to September is the best
season to visit Gokak as it bees in full bloom. Electricity was generated here for the
first time in the country in 1887. This generating station can be reached on the rope
way.
iii. Yellamma Temple: This

beautiful and ancient temple
of Goddesss Renuka, is
located in Saundatti Taluka at
a distance of 70 Kms from
Belagavi and the place can
be reached from all the other
places by road. It is situated
atop the Siddhachal Parvat.
The temple is built in the
Chalukyan and Rashtrakuta Style and the Carvings reflect the Jain architecture. The
temple was constructed by Bomappa Naik of Raybag in the year 1514. There are
temples of Lord Ganesh, Mallikarjun, Parshuram, Eknath, Siddeshwar etc in the
temple premises. Devotees from Maharastra, Goa and Andhra Pradesh also come
here, apart from people from Karnataka, especially during the time of Jatras which
are held twice in a year.
iv. Godachinmalki Falls: Located at a

distance of 50 Kms from Belagavi in
Gokak Taluka, it is at a fine spot to
the west of the Gokak-Konnur road
in a deep green valley. Also known
as Markandeya falls, it is located in
a rugged valley, which is
approachable from
Godachinamalaki village by walking as well as by vehicle through an irregular
forest route. It can also be reached from Nirvaneshwara Matha near Yogikolla, only
by foot. There are actually two falls formed here. The Markandeya river takes a
first fall from a height of about 25 metres and flows into a rocky valley. After a
short distance from the valley, it takes the
second fall from a height of about 18 metres.
v. Kamala Basti: Kamala Basti is an ancient Jain

temple dating as far back as 1000 AD and
situated in the famous Belagavi fort in
Karnataka. It was built in the style of the late
Chalukyans and this has an idol of Neminatha in
black stone. The main highlight of this place is

the Mukhamantapa which is in the form of an inverted lotus with 72 unfolded petals.
vi. Navilutirtha: Located 10 Kms from Saundatti, a

low valley situated in between the 2 hills, in an
enchanting place is Navilutirtha. Formerly, it
was full of peacocks, frequently flocking round
the pond, and thus the place was named
Navilutirtha. The Malaprabha Dam near
Renukasagar is situated here. It is also a good
picnic spot
vii. Rakaskop: Located 16 Kms from Belagavi,

Rakaskop literally means a hamlet of a
Rakkasa (Giant), who is stated to have
lived on a hillrock near the village. A
cavern in laterite on the hillrock resembling
a huge seated human figure is shown by the
people to remind his past existance.
Rakaskop is a small picnic spot, reachable
by road. Bike ride to Rakaskop is an
enjoyable outing, passing through green surroundings and small villages on the way.
viii. Kapileshwara Temple: Located within the city,

it is said to be one of the oldest temples in
Belagavi. It is called as Dakshina Kashi and it
is believed that the journey of the 12
Jyotirlingas of India is said to be incomplete
without a visit to kapileshwara. One should
visit this temple during the month of Shravan
or on the day of Mahashivratri to enjoy the
beauty and feel the religious essence to the
fullest extent.

3. Site Analysis
3.1 Introduction
The project site is located near Malaprabha dam in Naviluteertha on a land area of
about 5 acres in Savadatti taluk of Belagavi district. It is located along SH-103 about
50 km from Dharwad and 85 km from Belgavi city.
Figure 5: Malaprabha Dam in Belagavi
.
The following figures show the immediate vicinity of the project site:
Figure 6: Renukasagar reservoir

3.2 Location
The project site is located near

Malaprabha Dam in Naviluteertha in
Savadatti taluk of Belagavi district along
SH-103 about 50 km from Dharwad and
85 km from Belagavi city.
Renuka sagara is a reservoir for the

Malaprabha river adjacent to Saundatti,
formed by the Malaprabha Dam near
Naviluteertha. The famous Renuka
(Yellamma) temple Yallammagudda
Saundatti and the temple of Goddess
Yellamma or Sri Renukadevi are located
in close proximity to the project site.
Figure 7: Location of project site
The following figure shows the project site and the key cities in close proximity to it:
Belgaum
85 km
Project
Site
Dharwad
50 km
Hubli
67 km
Figure 8: Project site and key neighbouring cities

3.3 Site features and Surroundings
The project site is located off SH-103, which is proximate to the project site to the
eastern side. In-terms of topography, the project site is marginally undulating. At
present, the project site is accessible via a private KNNL road emanating from SH-103
from the eastern side.
The project site comprises an existing and functioning horticultural space called Shankar
Garden, which lies along the internal campus access to the Naviluteertha Dam. Further,
the project site also includes a defunct Inspection Bungalow (IB) called Jaladarshini, which
overlooks the Malaprabha reservoir and lies to the northwest of the dam structure.
The following table summarises the features of the Project Site:

Table 5: Features of the Project Site
Area 5 acres
Access Accessible via a private KNNL road emanating from SH-103
Shape Irregular in shape
Topography Marginally undulating
Visibility Very good visibility from the approach road
Contiguity Non-contiguous land parcel
The following table highlights the boundary and immediate surroundings of the Project
Site:
Table 6: Boundary and Surroundings of the Project Site
North Vacant Land
East SH 103 and a private KNNL Road leading to project site
West Naviluteertha Dam
South Upstream catchment of Malaprabha river
The following table summarises the status of infrastructure at the project site:
Table 7: Infrastructure status at the Project Site
Power Exists within the development
Telecommunication Exists within the development
Water Supply & Sewage Exists within the development
3.4 Connectivity
The site enjoys excellent road connectivity to Bangalore, Mysore and Chennai (via
Bangalore). The following table highlights the proximity of the subject site from the key
public transport nodes:
Table 8: Distance of project site form key public transport nodes
Mode of Public Transport Node Distance*(km)
Rail Dharwad 50
Road (Bus) Naviluteertha Bus Stop 0.14
Air Belagavi 72

Air Hubli 67
* Note: The table highlights the distances from the key public transport nodes in close proximity to the subject site.
3.5 Accessibility to key locations

The following table highlights the distance between project site and the surrounding
important destinations:
Table 9: Distance of Project Site from Important destinations
Key locations Distance from Project Site (km)
Savadatti 11
Dharwad 50
Hubli 67
Belagavi 85
Belagavi Airport 72
Belagavi Railway Station 83
Bagalkot 96
Regarding accessibility through public transport, Malaprabha Dam is moderately

connected though public transport as it is located along SH-103. There are regular State
owned buses operating across the region and the surrounding districts. The North
Western Karnataka Road Transport Corporation (NWKRTC) covers North West regions
like Belgaum, Dharwad, North Canara, Bagalkot, Gadag & Haveri districts. From
Bangalore, NWKRTC operates about 8 buses at an average interval of about 3 hours.
Similarly buses run from Belagavi at an average 30 minutes interval.
3.6 Development Control Regulations

The Project Site lies outside the jurisdiction of Belagavi Urban Development area.
However, it comes under The Karnataka Town and Country Planning Act, 1961 and
therefore the Development Controls Regulations stipulated under the same are
applicable for the subject development. Floor Area Ratio (FAR) of 1.5 will be assumed
for any development within the Project Site Development.

3.7 SWOT Analysis

The SWOT analysis of the Project Site is as follows:
Table 10: SWOT Analysis of project site
Helpful-To achieving the objective Harmful- To achieving the objective
Strengths Weaknesses
Internal origin Attributes to the site
Dam Catchment and the terrain are Moderate to Poor regional connectivity
ideally suited for various water based (Inadequacy of transport facilities).
tourism activities. Negligible quantum of quality real estate
space, viz. commercial, retail and hospitality,
which is an inhibiting factor for the slow
economic growth.
Remote location of the subject site might hinder
logistics required for support activities of
hotels and F&B services.
Non - Contiguous parcel of land
Opportunities Threats
Latent potential for tourism related Marketing the proposed development will be
External origin
Attributes to the
activities due to lack of facilities and challenging task because of undeveloped real
environment
branding - nature tourism and leisure estate market

activities.
Proximity to religious shrines may
generate demand for transit
amenities and tourist amenities

4. Perception Analysis and Consultations

4.1 Introduction
This chapter summarises the results of the primary survey of stakeholders Tourists, Tour
operators and Travel agents, Tourism departments, other concerned government
departments and experts.
The basic purpose of the primary field survey was to obtain a first-hand assessment of
the ground realities at various tourist destinations. The major tourist destinations in
Karnataka were identified and plotted on a map. The major areas with a cluster of
tourist destinations were segregated on the map and all these major clusters were
covered during the field survey.
The primary field survey envisaged interactions with major stakeholders at major tourist
destinations in the state. The travel and tourism industry has a number of stakeholders:
Tourists
Government departments like KNNL officials and Department of Tourism etc.
Hotel and Restaurant industry
Students
Real Estate Developers/ Agents
4.2 Perception Survey Findings
4.2.1 Perception Analysis and Consultations
Perception surveys were carried out through a personal interview with some of the key
stakeholder such as hotel chains, developers, tour operators, tourists and government
officials for identifying the key issues related to tourism and tourism infrastructure
facilities which are presently lacking in the Belgaum region. The surveys and
consultations were also intended to ascertain the perception of the above stakeholders
on the tourism potential of the region & requisite improvement/ augmentation facilities
in general, and willingness of the above key stakeholders to participate / take part in
the project development as developer / promoter or user.
Generally, all stakeholders highlighted the key issues and need to promote tourism
activities in the above said region. The unanimous opinion was the need for a strategy
to address inadequacy in terms of quality accommodation facilities for both domestic
and foreign tourists. In many cases, stakeholders highlighted the deficiency quality
dining restaurants and recreational facilities across the northern region of Karnataka
as a prime issue followed by basic urban infrastructure facilities.
4.2.2 Origin of Tourists

1.
The maximum domestic tourist inflow into the State is from Maharashtra and the
southern states of Tamil Nadu and Kerala. Together, they account for 48 percent of

total tourist turnover. A substantial number of tourists from the eastern part of India
have also visited the region.
Sikkim, 3%
Bihar, 7%
Rajasthan , Punjab,
3% 7% Maharashtra,
22%
Orissa , 7%
Tamil Nadu,
16%
Kerala, 10%
Delhi, 8%
West
Bengal,
7%
Uttar
Pradesh, Gujarat, 3%
7%
Figure 9: Geographical distribution of Tourists
4.2.3 Purpose of Visit
The chart below captures the major themes attracting the surveyed tourists. Usually,
combinations of themes complete the itinerary of tourists. Culture and heritage was the
dominant theme among the tourists due to the presence of Saundatti Yellamma Temple
in Belgaum. The other popular theme was leisure.
Business
Conference Leisure,
, 6% 14%
Heritage/
Cultural,
80%
Figure 10: Purpose of Visit by the tourists
4.2.4 Tour Package
Majority of the tourists, i.e. 90 percent were found travelling without a package tour
program and 10 percent of them were found to be travelling with a tour package
program. It was observed that even the tourists who were travelling on package tour,

would be travelling only a part of their tour in a package tour. This is mainly because
of poor connectivity and lack of information about tourist potential area.
4.2.5 Mode of Transport
It is to be noted that a lot of tourists use a combination of transport modes to reach the
destination from their respective port of entry. In the case of domestic tourist majority
of the responded said that their main mode of transport was road & rail but in the
case of foreign tourist air, rail and road were said to me their main mode of transport.
On an average the combination of rail & road were found to be maximum. During
survey, some of the foreigners also expressed their willingness to avail short distance
air travel to reach their places of interest in the region.
It was also highlighted by the responded (foreign and domestic tourist) that
transportation through private mode (Car/Taxis) were bound to be very expensive as
the potential are well scattered within the region. Appropriate packaging by the
hotelier supported by the concerned government departments will make the tour
viable and less expensive.
Air , 1% Others,
14%
Rail ,
50%
Road ,
35%
Figure 11: Mode of Travel
4.2.6 Average Length of Stay
Regarding the average length of stay, majority (49%) of the tourists preferred to stay
only for two days followed by one day (28%). This variation in stay is mainly because
the people who were visiting from the neighboring states of Karnataka tend to spend
less time than the people who are coming from the distant places. Majority of the
tourists were not much focused as far as covering the destinations was concerned. It
was also highlighted by the responded (foreign and domestic tourist) that a quality
destination with proper graded accommodation with full-fledged amenities and
facilities and F&B components will retain the tourist population for more numbers of
days in the region.

More
3 days, than 3,
17% 6%
1 day,
28%
2 days,
49%
Figure 12: Average Length of Stay
4.2.7 Frequency of Visit
The majority (81%) of the tourists was found to be visiting the destination for the first
time and the remaining 19 percent of them were repeat visitors. Majority of these
repeat visitors consisted of pilgrim tourists from the neighboring South Indian States,
Maharashtra, and Gujarat. Almost all the tourists surveyed expressed their willingness
and interest to visit the destination in future as well.
Repeat
Visit, 11%
First Visit,
89%
Figure 13: Frequency of visit of tourists
4.2.8 Problems faced by the tourists during Stay
Transportation: The local transport or the conveyance was a problem for the
tourists mainly in the small towns, villages or places located a bit away from the
main town or district headquarters. They were not only costly but also inconvenient
at times.
Inadequate tourist information about the destinations and places of interests.
Difficulty in getting hotels providing budget and premium accommodation.
Issues Highlighted by Government Officials (KNNL & Tourism Department)
Safety and Security of the monument and the other surrounding areas are lacking.
Difficulty in getting quality graded hotels in the region with full-fledged amenities
and facilities.
The region itself is not been promoted or publicized through media, newspapers.

Inadequate tourist information about the destinations and places of interests.

Frequency of the transport needs and the quality of the transport (existing) mode
to be improved.
Need for charted trip or in the form of packaging with NWKRTC.
Issues Highlighted by Students
The entire region is lacking entertainment facilities (Amusement Park, Adventure

activities etc.)
Frequencies of transportation mode are significantly less.
There are no information centers in the region which can exhibit or translate the
tourism development.
Belagavi lacks quality accommodation.
High transport cost through private mode.
Need for information kiosk within the KNNL development, highlighting the evolution
of the Dam.
4.2.9 Suggestions on Improving the Tourist Destination
Setting up of more number of information outlets at destinations and entry points

(Railway Station, Bus Stand etc.).
Transportation and accessibility to all the tourist potential area and places of
interest.
Frequency of the transport needs to be improved. More government buses and
private are required in the form charted trip or in the form of packaging.
Improvement of basic civic facilities near the potential tourist areas.
Better and cheaper accommodation and local conveyance such as pre-paid auto
and taxis at the destinations for mostly frequented by the tourists.
Security measures at tourist destinations.
More publicity through media about the destinations.
Improvement of the hotel services and the need to become more tourists friendly.
Better informed guides and travel / tour operators.
More standard and quality hotels near to the potential areas.
Recreation in terms of Theme Park, Light Show and Dam Trip at the destination with
proper information kiosk.
Inference: Many locals, student visitors, government officials and domestic tourists
stressed on the need for restaurants, affordable hotels with more options entertainment
activities. There was also stress on the good transport facilities. Foreign tourists were
very few and the perception they had was the need for good and quicker connectivity,
signages, availability of ATMs, emergency healthcare, security along with good hotels
and restaurants.

5. Identification of Project Facilities

Keeping in mind the project sites characteristics, location, and existing/potential
catchment available in the region, the following product mix has been proposed. The
feasibility of each type of development shall be discussed later in the report.
5.1 Competition Analysis

A detailed competition analysis has been undertaken to assess the status of the
Hospitality sector. The region within a radius of 50 km from project site, which includes
Belagavi and Hubli- Dharwad, has been considered for the purpose of analysis.
Project
Belgaum Site
85 km
Dharwad
50 km
Hubli
67 km
Figure 14: Catchment area of the project site
5.1.1 Hospitality Segment
The hospitality market in Belagavi has been restricted primarily to Belagavi city
(approx. 85 km from the project site) and is dominated by business travellers to the
various foundry units in the Industrial estates. In addition to the business tourist,
Belagavi is a town with rich cultural heritage with tourist places in and around the
region. The city of Goa which is one of the hot tourist destinations is only 120 km from
Belagavi and is approachable both by rail and road in 3-4 hours.
Most of the hotels are located along the College Road, Club Road, Kirloskar Road and
along the main road leading to the Central Bus stand. In terms of hotel categories, the
city is yet to have a formal 3-4 star category hotel. Eefa Hotel on Club road is close to
a 3 star rating hotel having 59 rooms inventory with 80% being standard rooms, 10%
Deluxe and 10% suites.

The other premium hotels are Sanman, Aadarsha, Sankam Residency and Krishna Inn
having a 50-80 room inventory and tariff in the range of INR 3000-5000. The other
budget hotels in the same locality generate tariffs in the range of INR 600-1500 per
day. The basic room rents for the different hotels in Belagavi are provided in the table
below:
Table 11: Hospitality sector overview in Belagavi

Hotel Name Base Tariff (INR)
Hotel Eefa 3000-5000
Sanman Hotel 1100-3500
Adarsha Palace Hotel 1000-2500
Sankam Residency 2000-3500
Kshema Inn 900 3500
Sai Sangam International Hotel 700-2000
Rakshit International Hotel 700-1500
Ramdev International Hotel 600-1400
Pai Hotel 600-1400
The hospitality segment in the Hubli Dharwad region is led by the presence of
number star category hotels offering premium accommodation. The quantum of hotel
properties falls while moving from Hubli Dharwad to the project site. The lack of
budget and no-frills category accommodations, despite being frequented by tourists
making way to religious tourism locations in and around the region, makes the segment
very attractive from the perspective of development budget segment hotel. The figure
below highlights the existing scenario in the influence region:

The other demand drivers for developing the hospitality segment are:
Table 12: Demand Drivers for Hospitality Segment
Factor Description
Nearest accommodation from the project site located at a distance of over 50
Lack of km
supply Under-developed market for budget hospitality segment in the project site
region
Project site located away from the district of Dharwad and adjacent to the
Ideal Location Malaprabha reservoir, and hence is ideally suited for the development of a
budget hotel
Lack of No significant existing/upcoming competition up to a distance of 15 km from
Competition project site
Subject property is located in close proximity to Dharwad and is less than 15
Potential km from the Saundatti Yellamma (Renuka) temple and en-route to other
Catchment spiritual and heritage sites in Badami, etc. which is frequented by tourists
throughout the year and would be a potential catchment.
According to the Department of Tourism (GoK), the state witnessed a total tourist
inflow of about 85 million international and domestic tourists in 2011. The districts of
Belgaum and Dharwad, being considered as potential catchment regions for the
proposed development mix, account for about 4% of the total inflow of tourists.
The following table(s) presents a snapshot of the above mentioned tourist statistics3.
Table 13: Tourist Inflow statistics 2011

Destination Domestic Tourists International Tourists Total Tourists
Belagavi 2,759,800 - 2,759,800
Dharwad 324,707 1,941 326,648
Karnataka 84,107,390 574,005 84,681,395
Source: Tourism statistics of Department of Tourism, GoK
Table 14: Tourist Inflow growth figures for the period of 2007-11
Category 2007 2008 2009 2010 2011
Domestic 37,825,953 37,010,928 32,729,679 38,202,077 84,107,390
Growth Rate 5% (-2%) (-12%) 17% 120%
CAGR 17% over the period of 2007-11
International 534,563 520,041 229,847 324,573 574,005
Growth Rate 6% (-3%) (-56%) 41% 77%
CAGR 1.5% over the period of 2007-11
Total 38,360,516 37,530,969 32,959,526 38,526,650 84,681,395
Growth Rate 5% (-2%) (-12%) 17% 120%
CAGR 17% over the period of 2007-11
As represented above, the tourist inflow in Karnataka has grown at a compound

annual growth rate of 17% for the period of 2007-11. Further the potential catchment
3 Statistics presented for the year 2011

region of Belagavi and Dharwad together account for about only 4% of the total
tourist inflow in the state, for the calendar year 2011. This highlights the fact that these
destinations possess latent tourist demand. Belgaum accounting for about 3% and
Dharwad about 1% of the total traffic in Karnataka in 2011, the region has witnessed
a lack of supply in terms budget accommodation. Based on the above analysis, the
following facility has been proposed:
Table 15: Proposed facility in Hospitality segment

Key Drivers of
Type Product Potential Catchment
Demand
Small to medium-sized hotel
establishments that offer a
very limited amount of on-site
An attractive offering
amenities and often only
to tourists from various
Budget Segment offer basic accommodations
Belgaum and Dharwad parts of the India, in
Hotel + with little to no services, these
Districts, Bangalore, addition to attracting
Renovated facilities normally only cater
Mysore tourists from
Jaladarshini IB and market to a specific
Bangalore, Chennai,
demographic of travellers,
and Mangalore.
such as the budget-minded
travellers seeking a "no frills"
accommodation
5.2 Proposed Facilities

Keeping in mind the project sites characteristics, location and existing/potential
catchment available in the region, the following product mix has been proposed:
Table 16: Proposed Project Facilities
Type Product Potential Catchment Key Drivers of Demand
Capital Investment Medium
Adventure / A getaway for families and Belgaum and Lack of outbound and
Water Sports students offering a host of Dharwad Districts, adventure entertainment
& Outbound games, or team-building Bangalore, Mysore facilities in Belgaum and in
Training activities and outbound Dharwad being the driver.
Arena training
Small to medium-sized hotel

establishments that offer a
very limited amount of on-site
amenities and often only offer
Budget basic accommodations with An attractive offering to
Segment Hotel little to no services, these Belgaum, Dharwad , tourists looking for no frills
+ Renovated facilities normally only cater Bangalore, Mysore accommodation
Jaladarshini IB and market to a specific
demographic of travellers,
such as the budget-minded
travellers seeking a "no frills"
accommodation.

Type Product Potential Catchment Key Drivers of Demand

Capital Investment Low
Lack of public parks in the
Development of landscaped catchment. Kote Kere Lake
Savadatti, Dharwad,
Public Park gardens with designated and Amusement Park and
Hubli, Belgaum
childrens play area. Unkal lake in Dharwad
being the only case in point.
Tie-up with engineering Engineering colleges and
colleges and universities for Bangalore, Mysore, universities from tier I
Educational
providing Internship Savadatti, Dharwad, cities could include the
Tie-ups
programs/educational tours Hubli, Belgaum educational excursion as a
to the project site part of the curriculum
4.3 Demand Assessment

As a result of above mentioned parameter and post conducting an extensive market
study in the region, an in-depth demand assessment has been conducted for the each of
the developments proposed above. While computing the demand assessment, the
following parameters have been considered:
Total Population in the catchment region

Total Tourist inflow in the catchment region
Footfalls and Revenue figures of similar properties in Karnataka
Per capita income figures for the fiscal 2013-14
Entertainment spending as a percentage of per capita income for fiscal 2013-14
Further, as each of the developments proposed cater to different sections of the

population, the potential catchment region includes Belagavi and Dharwad Districts.
The table below presents estimated footfall projections over the period 2015-25:

DEVELOPMENT OF TOURISM RELATED INFRASTRUCTURE NEAR MALAPRABHA DAM, BELAGAVI Project Feasibility Report
Table 17: Footfall Projections for Proposed Facilities
FOOTFALLS PROJECTION* 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Adventure / Water Sports - 43,291 45,456 47,728 50,115 52,620 55,252 58,014 60,915 63,961 67,159
& Outbound Arena
Budget Segment Hotel + - 35,032 36,784 38,623 40,554 42,582 44,711 46,946 49,294 51,758 54,346
renovated Jaladarshini IB
Public Park 1,13,402 1,19,072 1,25,026 1,31,277 1,37,841 1,44,733 1,51,970 1,59,568 1,67,546 1,75,924 1,84,720
Educational Tie-ups 1,560 1,638 1,720 1,806 1,896 1,991 2,091 2,195 2,305 2,420 2,541
*All figures in Nos.

The above table highlights the expected footfalls for each of the proposed
developments. The expected time of construction and operation commencement for
Medium capital investment development have been assumed to be Q1 2016.
Hence the same do not reflect any footfalls in the initial period from 2015-17.
Based on the above mentioned demand projections, the following land use mix
has been proposed:
Table 18: Land-Use Mix for Proposed Facilities
Land-Use Mix
Budget Hotel + renovated Jaladarshini IB 1 acre
Adventure / Water Sports & Outbound Arena 3 acres
Public Park 1 acre
Educational Tie-ups -
Total 5 acres
Hence given the current market scenario, demand-supply gap and potential
catchment region, the proposed developments can be developed with about 84%
land utilization.
The following table briefs the potential clients/prospective users of the proposed
project facilities:
Table 19: Potential Clients/ Prospective Users for Proposed Facilities
Development Potential Client/Prospective Users
Budget Hotel + renovated Subject location is in proximity to Dharwad and is less than 15 km
Jaladarshini IB from the Saundatti Yellamma (Renuka) temple and en-route to other
spiritual and heritage sites in Badami, Aihole, Pattadakal, etc. which
Adventure / Water Sports is frequented by tourists throughout the year and would be potential
& Outbound Arena demand generators.
Public Park NA
Educational Tie-ups NA
4.4 Fee Structure
Based on the above mentioned expected demand assessment projections and also
taking into consideration the potential land-use mix the optimal fee structure for
the said developments has been computed. In addition, while computing the fee
structure, the fee structures of similar developments in South India have also been
taken into account. The following table highlights the optimal fee structure along
with the year-on-year escalation factor.

Table 20: Fee Structure for Proposed Facilities

Escalation/ 3 years
Fee Structure Average Fee*(Rs.)
(%)
Budget Hotel + renovated Jaladarshini IB 1000 - 1500 8
Adventure / Water Sports & Outbound Arena 100 - 150 8

Public Park (Per person) 10 - 15 8
Educational Tie-ups** (per person) 150 200 8
*Average Fee is expected to vary according to age categories

**Fee to be charge per person for visit to the dam only. The same doesnt include cost for travel, accommodation and food. To be charged
additionally on a case to case basis
The above mentioned fee is exclusive of VAT, service tax and other charges. The
same would be charged additionally as per the applicable norms.
4.5 Viability Assessment
The following table highlights the expected pricing for the proposed developments for a
period of 5 years. The escalation factors for the same have been assumed, as mentioned
earlier.
Table 21: Viability Assessment of Proposed Facilities
Development 2017 2018 2019 2020 2021
Budget Hotel + renovated Jaladarshini IB - - 1500 1650 1650
Adventure / Water Sports & Outbound Arena - 100 100 108 108
Public Park (per person) - 10 10 11 11
Educational Tie-ups (per person) 150 150 150 170 170
All figures in Rs.
*Rentals mentioned for a warm-shell space which shall be leased out to F&B chains at the said rentals. Warm-shell space to be built by the
developer
**Resort to offer budget category accommodation and to be constructed by the developer

5. Financial Feasibility Assessment

A financial model for the proposed project facilities to be developed under PPP
framework was prepared and tested. This section captures the key financial highlights of
the project configuration.
5.1 Area Assumptions

The various facilities which have been proposed at the site, along with the area
allocated to each facility, are as follows:
Table 22: Area Assumptions
Components Area (acre)
Public Park 1
Educational Tie- Ups -
Budget Hotel + renovated Jaladarshini IB 1
Adventure / Water Sports & Outbound Arena 3
Total 5
5.2 Costing Assumptions

The key assumptions for the project cost of the various components of the proposed
facilities based on the standard Industry norms are set out below:
Table 23: Assumptions for CAPEX
Development CAPEX (INR
crore)
Public Park 1.25
Educational Tie-ups NA
Adventure / Water Sports & Outbound Arena 2.50
Budget Hotel + renovated Jaladarshini IB No. of keys ~ 65 INR 10 L/Key 6.30
5.3 Estimated Project Cost

Based on the project cost assumptions, the total project cost for various components is set
out below:
Table 24: Estimated Project Cost
Components Construction Period Base Cost Escalated Cost
Years INR Crore INR Crore
Public Park 1 1.25 1.35
Educational Tie- Ups - - -
Adventure / Water Sports & Outbound
1 2.50 2.71
Arena
Budget Hotel + renovated Jaladarshini IB 2 6.30 6.99
Total Construction Cost 10.05 11.05
Contingency 0.22
Master Planning and Pre Ops Charges 0.33
Financing Charges 0.09

Interest during construction (IDC) 1.14

Total Project cost 12.83
5.4 Financial Assumptions

These assumptions are based on the market norms and trends and estimates:
Table 25: Financing Assumptions
Financing Units
Debt : Equity ratio 70:30
Interest Rate 13% per annum
Cost of Equity 20% per annum
Corporate Tax 33.99%
Concession Amount Rs. 10 Lakhs
Concession Period 30 years
5.5 Operating Assumptions

Each component of the proposed project facilities i.e. Public Park, Educational Tie-Ups,
Budget Hotel and renovated Jaladarshini IB, Adventure/Water Sports & Outbound
Arena form the revenue sources for the project. The operating costs would include the
operation and maintenance of all the facilities, utilities (power and fuel) cost, and costs
for food and other components including marketing/ promotion and administration.
The key assumptions related to revenue and operational costs are indicated for each
component along with the growth rate assumptions for each parameter. The basis for
arriving at the said assumptions has also been provided against each assumption:
Table 26: Assumptions for Revenues from facilities
Facility Revenue Escalation/3 years Basis for assumptions
(%)
Public Park Rs. 10
Educational Tie- Ups Rs 150 per person
Adventure / Water Rs 100 per person
Sports & Outbound
Arena
Assumptions based
Budget Hotel & Rs. 1500 per room 8
on market norms
renovated
Jaladarshini IB
Common F&B facility Rs. 50 per person
Revenue from
5% of the total revenues
Advertisement

Table 27: Assumptions for O & M expenses of each facility

Operating costs Parameters Y-o-Y escalations (%) Basis for assumptions
Public Park 8% of the Capital cost
Educational Tie- Ups Same as Dams OPEX as
the it is not an additional
component
Adventure / Water
Sports & Outbound 15% of the Capital cost
Arena
Budget Hotel & Assumptions as per
renovated 40% of hotel revenues 5 market and industry
Jaladarshini IB norms
F&B Expenses 40% of F&B revenues
Marketing and
Promotion
Administrative
expenses
Periodic
5% of the Capital cost
Maintenance

DEVELOPMENT OF TOURISM RELATED INFRASTRUCTURE NEAR MALAPRABHA DAM, BELAGAVI Project Feasibility Report
Table 28: Projections for Revenue and Operating Expenses
All figures in Crores FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY24 .....FY 46

Revenue
Revenue from Public Park - 0.13 0.14 0.16 0.17 0.18 0.20 0.21 1.29
Revenue from Educational Tie ups 0.03 0.03 0.03 0.03 0.04 0.04 0.04 0.05 0.25
Revenue from Adventure / Water Sports &
- 0.48 0.50 0.57 0.60 0.63 0.71 0.90 3.84
Outbound Arena
Revenue from Budget Hotel - - 2.49 3.01 3.29 3.56 4.19 4.78 8.77
Revenue from common F&B facility 0.01 0.01 0.63 0.72 0.81 0.92 1.05 1.19 18.87
Income from Advertising 0.00 0.03 0.19 0.22 0.25 0.27 0.31 0.33 1.65
Total 0.04 0.67 3.98 4.72 5.15 5.59 6.50 7.01 34.67
Operating Expenses
Public Park - 0.10 0.11 0.11 0.12 0.12 0.13 0.13 0.39
Educational Tie-ups - - - - - - - - -
Adventure / Water Sports & Outbound Arena - 0.38 0.39 0.41 0.43 0.46 0.48 0.50 1.47
Budget Hotel - - 0.71 0.86 0.94 1.02 1.20 1.28 2.51
F&B expenses 0.00 0.00 0.84 1.00 1.1 1.21 1.41 1.54 8.80
Marketing and Promotion 0.00 0.01 0.08 0.09 0.10 0.11 0.13 0.14 0.69
Administrative Expenses 0.00 0.02 0.12 0.14 0.15 0.17 0.19 0.21 1.04
Periodic Maintenance - - - - - 0.25 1.35 - -
Annual Concession Period 0.15 0.16 0.17 0.17 0.18 0.19 0.20 0.21 0.62
Total 0.15 0.67 2.42 2.80 3.04 3.53 5.09 4.02 15.51

MALAPRABHA DAM, BELAGAVI Project Structure Report
Based on the above mentioned financials the net present values at a 12.01%
discounting factor of the revenue streams, expenses and Profit after Tax (PAT) for the
project are mentioned below.
Table 29: NPV of Revenues, Expenses and PAT
Revenues (NPV) (Rs. Crores) Expenses (NPV) (Rs. Crores) PAT (NPV) (Rs. Crores)
56.53 33.00 11.87
The project returns typically expected by the developers are of the order of 15 %
and accordingly, projects are considered to be financially viable in case the Project
Internal Rate of Return (Project IRR) is greater than 15%. The project returns are set
out in the table below.
Table 30: Project financial indicators
Parameter Value
Project NPV (Rs Crores) 7.95
Project IRR (%) 17.64
Indicative Concession payment (Rs Lakhs) 15
NPV of Concession Payment (Rs Lakhs) 1.83
It may be noted that the concession payment indicated above could vary depending
upon the facilities that the developer would create based on his assessment. The benefits
that would accrue to KNNL would be:
Income from the concession payment payable by the successful developer on an

annual basis over the concession period.
The project facilities that would be developed would be handed over to KNNL
after the concession period or during the termination of the agreement
The property would always be vest with KNNL.
5.6 Sensitivity Analysis

The sensitivity analysis has been carried out to determine the range of concession
payments such that the project internal rate of return is 15%. The sensitivity analysis has
been carried out by varying the following parameters:
Change in capital cost Increase / decrease in Capital Cost

Change in Revenue Stream Varying the entry fee for the Proposed Facilities

The following table summarises the sensitivity of the Project IRR to changes in the project
cost and revenues:
Table 31: Sensitivity Analysis
Change in Project Cost

-30% -20% -10% 0% 10% 20% 30%
-30% 17% 15% 14% 12% 11% 10% 9%
Change in revenue
-20% 19% 17% 16% 14% 13% 12% 11%

-10% 21% 19% 18% 16% 15% 14% 13%
0% 23% 21% 19% 18% 16% 15% 14%
10% 25% 23% 21% 19% 18% 16% 15%
20% 27% 25% 22% 21% 19% 18% 17%
30% 29% 26% 24% 22% 21% 19% 18%

6. Project Structuring Options
This chapter sets out the salient features of the different structuring options for
undertaking the implementation of the project under a suitable PPP model and
recommendation on the most suitable structure.
6.1 Review of different PPP Frameworks

There are mainly three different frameworks for contracting work under the PPP model
as described below:
6.1.1 Service Contract
A specific service (discrete and clearly defined) is contracted out by the public agency
to a private operator. Payment is usually on fee per package basis. Service contracts
are subject to frequent competition and usually last for shorter term like one year. It is
also common to give out separate contracts for different parts of the project to more
than one operator, thereby enabling comparative competition.
6.1.2 Management Contract
Under this arrangement, the private sector assumes the responsibility for core activities
such as operations and maintenance of units in a specific geographical sector (which
could comprise the whole or only a part of the entire project) or at a defined level of
responsibility. Public entities legally remain the owners of the assets. A private
company may agree to take over the responsibility for managing a service to
specified standards but using the staff, equipment, vehicles and buildings of the public
entity. In such a situation the private company would bring in its management
expertise, however is unlikely to make major capital expenditure under such a
structure.
6.1.3 BOT/ Concession Contracts
The private operator is responsible for financing new investment in entire project over
the life of the contract. The assets are owned by the public entity; however, the private
operator takes over responsibility of managing assets, creating new assets where
required, raising finance for the new investments, providing the service, operations and
maintenance, collection of charges, if applicable. This arrangement could apply to a
specific jurisdiction or geographical area. The private operator would pay an annual
fee or may receive an annual subsidy depending on the financial circumstances of the
service. Such arrangements may apply in respect of commercial operations owned by
an authority where the user charge either covers or represents a substantial proportion
of the total cost.

6.1.1 Review of the requirements for different frameworks

Table 32: Review of different PPP frameworks
Framework Technical Managing Operating Capital O&M
Expertise Expertise Efficiency Investment Investment
Service Contract Yes No No No No
Management Yes Yes Yes No No
Contract
Concession Yes Yes Yes Yes Yes
Based on the above available frameworks, the following structure has been analyzed
for undertaking the project:
6.2 Proposed Structure

The salient features of the proposed structure are detailed out as shown below:
Table 33: Features of proposed DBFOT structure
Sl No Particulars Details
1 Framework for implementation of Development of additional facilities under Design,

project Build, Finance, Operate and Transfer (DBFOT) model
2 Facilities to be Budget Hotel and renovated Jaladarshini IB
developed/maintained Adventure / Water Sports & Outbound
Arena
Public Park
Educational Tie Ups
3 Agreement period/Contract 30 years (including 1 year for construction)
period
4 Parties involved Authority (KNNL)
Developer (Developer)
5 Ownership of assets KNNL (Handback of all assets by the developer at
the end of the agreement period)
6 Capital investment By the Developer
7 Operation & Maintenance Responsibility of the Developer
8 Revenue accruals To the Developer

9 Payment Mechanism Developer would make annual payment to KNNL
with an escalation per annum
10 Target category of private sector Restaurateurs and Hotel operators
Adventure sports operators
Real Estate developers
The advantages and disadvantages of the structure are listed below:
a. Advantages:
i. Bidder is allowed flexibility to develop the area in accordance with KNNL

requirements
ii. Ownership of the asset remains with KNNL.

iii. Length of concession period is fixed

iv. Bidder would develop, operate and maintain the area over the concession
period
v. The land and the facilities developed on it, would be handed back to KNNL at
the end of the concession period
vi. Risk of time bound completion, cost overruns and revenue risk is transferred to
the Bidder
vii. Revenues stream are assured and fixed
b. Disadvantages
i. Technical proposals of the Bidders may need to be evaluated

ii. Time for development may increase slightly in cases of conditions precedent not
being completed on time
iii. All risks are borne by the Bidder and hence the Bidder may expect higher
returns from the project
6.3 Responsibility of the developer
Under this framework, the responsibilities of the developer would be:
i. To design, finance and develop the project facilities in line with KNNLs
requirement
ii. Recover the investment by levying user charges on the various components
iii. Operate and maintain the facilities throughout the agreement period
iv. Make annual payments as agreed in the Project Development Agreement
v. Handback all the assets to KNNL at the end of the agreement period

6.4 Implementation Structure

The following diagram depicts the overall framework of the project execution:
Project Engineer/ KNNL
KNNL
Figure 15: Implementation Structure
The following would be the salient features of the implementation framework:
a. Handover of the Project site by KNNL on execution of the Project Development

Agreement (PDA) to the developer (SPV formed for undertaking the project under
PPP model) along with the grant of development rights for development of the
project as per terms of the PDA.
b. The project would be developed by the developer wherein it would be

responsible for designing, financing, development, operation & maintenance and
transfer of the project at the end of the agreement period
c. Annual payments would be made by the developer to KNNL against grant of the
development rights.
d. Project implementation would be monitored by a Project Engineer employed by

KNNL for overlooking the day to day activities as well as overall performance of
the project
e. The developer would be allowed to levy and collect user charges from the users
of the project facilities

f. On expiry of the agreement period, the developer would hand back the project
site and facilities developed on ensuring that the quality and condition of all the
facilities developed are in good and working condition
6.5 Risks assessment

Under the above framework, following are the risks that would be transferred to the
developer:
a. The mobilization of finances would be the responsibility of the private developer

and the risks associated with the financial aspects in terms of profitability and
returns would lie with the developer
b. The risk of adhering to the Applicable Law would be passed on to the private
developer.
c. The risk of time-bound completion of the Project would be passed on to the
private developer. Since the revenue streams for the private developer from the
Project would commence only after completion of the Project, it would be in the
interest of the private developer to complete the Project as early as possible.
d. The risk of over-runs in construction cost and operational expenses would be
borne by the private developer.
6.6 Types of Bidding

The process of selection could be through an open competitive bidding process using
objective bidding parameters for evaluation of proposals. The bid process could be
either a single stage or multi stage process.
Single Stage Two-Stage process
Involves low level of preparation and Complexity of the Project is high/

less preparatory lead time Project is new to market
Assumes significant industry knowledge High cost of preparation of
Can be used for Projects of low proposal by Bidders
complexity
Figure 16: Types of Bidding
a. Single stage Bid Process
A single stage bidding process is used when the contracting agency has sufficient sector
knowledge and the Project implementation framework is a tested one. It is hence used
for Projects with low complexity. Under this bidding structure, the Bidders are required
to submit documents confirming to qualification criteria (technical capability and financial
capability), technical proposal and their Financial Bid in two separate envelopes. The

contracting agency evaluates the technical proposals and the Financial Bids of the
qualified bidders are then opened for evaluation and selection of developer.
Single stage process results in a lower lead time for bidding. Generally pre-qualification
of bidders is assumed or is used for an approved / short listed group of bidders. One of
the important considerations for such bidding process is adequately defining the contours
of the Project.
b. Two stage process
This process is adopted for Projects with high complexity or Project is new to the market
or high cost of preparation of proposals. A typical two stage bidding process comprises
of the following steps:
RFQ Stage RFP Stage Developer
In the first stage that is the RFQ stage, the Bidders are short listed on the basis of their
qualifications required for the Project. The qualification is assessed on the basis of past
experience of the Bidders in carrying out similar Projects and their financial capability.
RFP documents setting out the terms and conditions of the Project are then issued to the
short-listed Bidders. The Bidders are required to submit documents confirming to
qualification criteria (technical capability and financial capability) and technical
proposal in the first stage. Subsequent to short listing of qualified bidders at this stage,
the qualified bidders are then invited to submit the Financial Bid.
It is recommended to adopt a single stage bid process for the Project. The bidding
process would involve preparation of tender documents and carrying out a bid
process for identification of the developer.
6.7 Salient features of Instruction to Bidders (ITB)

This section sets out the eligibility conditions for the Bidders, description of bidding
process, evaluation process to be adopted by KNNL, Financial Bid and other conditions:
a. Bid Process for Selection of Private Developer
It is proposed to select a suitable private developer for the Project through a

transparent bidding process as per the provisions of the Karnataka Transparency in
Public Procurement Act, 1999. The proposed process for selection of the private
developers has been outlined below.

The Bid submission shall be through hard copy or e-tendering mode and shall include
the following documents:
Key Submissions
Qualification Submissions
Technical Proposal
Financial Proposal
The Evaluation of the Bids would comprise the following 4 stages:
i. The first stage of the bid process would involve opening and evaluation of the
Key Submissions and a test of responsiveness based on the provisions of the ITB.
The Bids found to be substantially responsive would be considered for the next
stage i.e. Evaluation of Eligibility Criteria.
ii. In the second stage, the information of the Bidders relating to their eligible
experience comprising Technical Capacity and Financial Capacity (Eligibility
Criteria) would be evaluated as per provisions of the ITB. Bidders who meet
the Eligibility Criteria would be considered for evaluation of Technical Proposal.
iii. In the third stage, the technical proposals of the Bidders meeting the Eligibility
Criteria would be evaluated and marked. Only those Bidders who score 70
marks and above would be declared as technically qualified Bidders and shall
qualify for the next stage of evaluation.
iv. The Financial Proposal of Technically qualified Bidders would be opened and
evaluated to identify the Selected Bidder as per the provisions of the ITB. The
Financial Bid would be the amount payable by the developer to KNNL on an
annual basis (Annual payment). The Bidder quoting the highest Annual payment
would be the Selected Bidder.
b. Evaluation Process
Evaluation of bids received would be carried out in the following stages:
i. Test of Responsiveness
This stage involves opening of the Key Submissions and the documents would be
checked for responsiveness. A Bid shall be considered responsive only if the
following documents are submitted in accordance with the provisions of the ITB
and as per the formats provided in the ITB and the Bid is signed, sealed and
marked in accordance with the provisions of the ITB:
A Demand Draft towards the cost of the RFP Document.

Letter of Bid in the prescribed format;
Power of Attorney for signing of Bid in the prescribed format;
Power of Attorney for Lead Member of Consortium in the prescribed
format , if applicable;

Bid security in the form of a Bank Guarantee in the prescribed format or

as Demand Draft for an amount mentioned in clause (g) below.
Technical Capacity and Financial Capacity in accordance with the
provisions of the ITB;
Copy of Memorandum and Articles of Association of the Bidder;
Copies of Bidders or each Consortium Members duly audited annual
reports and financial statements;
Certificate from the Statutory Auditor/ Independent Auditor for
Associate, if applicable;
Jt. Bidding Agreement, in case of a Consortium; and
A copy of the draft Project Development Agreement (PDA) with each
page initialled by the person signing the Bid.
6.8 Salient Features of Draft Project Development Agreement (PDA)

This section sets out the key obligations of the Parties, events of default leading to
termination, Termination Payments, hand back requirements and dispute resolution
mechanism.
a. Obligations of the Developer
The Developer shall:
i. Design & develop the project facilities at its cost and expenses within the
construction period.
ii. Design & develop the facilities in conformance to the approved PDP.
iii. Undertake developments in accordance with requirements set out by KNNL in the
Bid documents.
iv. Operate and maintain the Project Facilities during the Agreement period (including
the existing developments currently maintained by KNNL) as per specifications set
out in the PDA.
v. Make regular payments to KNNL in accordance with the payment terms set out in
Bid documents.
vi. Develop alternative sources of power as per assessment carried out in the
approved PDP, if required.
vii. Develop elaborate safety and emergency evacuation arrangements.
viii. Comply with all Applicable Laws and Applicable Permits
ix. Ensure that;
The Project Site remains free from any type of encroachments during the
agreement period
No damage is done to the existing assets/properties of KNNL
Entertainment of illegal activities shall be strictly prohibited in the project
vicinity

x. Transfer the Project Site and Project Facilities to KNNL upon expiry / termination
of Agreement.
b. Obligations of KNNL
KNNL shall:
i. Handover proposed Project site within 6 months from Appointed Date (date of
signing of the Project Development Agreement)
ii. Grant Project Development Rights to the Developer
iii. Assist the Developer in procuring all required approvals, permissions and
authorizations etc.
iv. Undertake shifting of any utility including electric lines, water pipes etc hindering
the development activities
v. Upon written request from the Developer, facilitate in obtaining necessary
infrastructure facilities and utilities, including water, electricity and
telecommunication facilities
c. Condition Precedent
The timeframe for achieving Condition Precedent would be 6 (six) months from the
Appointed Date or extension thereof.
Developer:
i. Developer shall have prepared and submitted the detailed Project Development
Plan (PDP) to KNNL for approval as per the guidelines provided in the clause below
ii. Developer shall have obtained approval on the design and planning of the Project
submitted at the time of bid submission
iii. Developer shall have obtained all applicable permits unconditionally including
environmental clearance or if subject to conditions then all such conditions required to
be fulfilled by the date specified therein and such Applicable Permits are in full
force and effect;
KNNL:
i. KNNL shall have handed over to the Developer on as-is-where-is basis peaceful
physical possession of the Project Site free from encumbrance and encroachment
d. Project Development Plan
a) The Developer shall, within 3 (three) months from the Appointed Date, prepare
and submit to KNNL, a detailed plan for development of Project Facilities for
implementation of the project in conformity with the set Standards and
Specifications and Applicable Laws.

b) The PDP shall set out in detail the following for carrying out the Project
Development Activities:
i. Detailed list of Applicable Permits to be obtained by the Developer, the

government agency concerned for sanction and the stages in the Project
when such Applicable Permits would need to be sought;.
ii. List of Project facilities along with details of the capacity, location,
dimensions of the same. The PDP prepared by the developer should
necessarily provide for development in a phased manner on the available
land parcels in such a manner that independent and well defined access of
roads and other infrastructures are available to all these parcels.
iii. Area statements for all Project Facilities, including FSI permissible, FSI
proposed to be consumed.
iv. Construction time schedules for completion of the project which shall be in
accordance with the Project Completion Schedule;
v. Standards & specifications of proposed buildings, project components,

building materials, procedures, type, and other details of the construction
activities;
vi. Operation and maintenance requirements of Project Facilities in conformity

with the applicable acts, rules, policies and guidelines issued by the
competent authority and amended from time to time
vii. Safety requirements, procedures for emergency evacuation and other

usages related to the construction of Project Facilities;
viii. Details of the reports to be submitted and procedure for reviews
e. Damages
In case the developer fails to complete any of the milestones in the timeframe specified
in the approved Project Development Plan (unless in case of force majeure), it shall pay
damages calculated at the rate of 0.1% of the amount of Performance Security for
delay of each day until such milestone is achieved; provided further that in the event
Commencement of Operations Date (COD) is achieved on or before the Scheduled
Project Completion Date (SPCD), the Damages paid under this Clause shall be refunded
by KNNL to the developer, but without any interest thereon
f. Agreement period
The agreement period would be 30 years, including the construction period of 1 year.
g. Development Guidelines

The Developer would need to construct the Project Facilities in accordance with the norms
specified by KNNL with respect to Design and Construction Standards and maintain the
facility in accordance with Operation & Maintenance Requirements. Along with the bid
submissions, the developers would be required to submit a Project Development Plan as
per the guidelines provided in the Technical Proposal.
h. Payment Terms
With respect to Annual payments, two scenarios can be considered under the payment
mechanism:
Table 34: Scenarios for Annual Payment

Scenario Description
Scenario 1 Upfront Premium payable on signing of the Agreement and annual payments
(with annual escalation of 5%) throughout the agreement period
Scenario 2 Annual payments payable from the Scheduled Project Completion Date
(SPCD) and thereafter on every anniversary of the SPCD (with annual
escalation of 5%) throughout the agreement period
i. Penalty
Any delay in the annual payments to be made by the developer to KNNL would entail a
penalty of interest on the amount due at the rate of 4% above the Bank rate
compounded annually, from the due date till the date of actual payment. Further, if such
a delay extends beyond 60 days from the due date, the same shall be form an event of
default by the developer.
KNNL would through and additional auditor; reconcile the details of the revenues as per
the annual reports submitted by the developer. In the event of a discrepancy between
the windfall payments declared by the developer and the windfall payment calculated
as per the annual reports, the developer would need to make the differential payments
to KNNL.
j. Events of Default
i. Developers Event of Default
Failure to commence commercial operations within 90 days of Scheduled

Project Completion Date (SPCD)
Failure to make any payments (annual payments as well as windfall
payments) due to KNNL within 60 days of the due date of the payment
Failure to develop Project Facilities in accordance with the approved PDP
Non-adherence to O & M requirements
Project Facilities have been shut down for a period of 3 months
continuously or an aggregate period of 4 months in a calendar year
Failure to adhere to the shareholding requirement

In case of encashment of Performance Security, failure to replenish or

provide fresh Performance within a period of 30 days
Abandonment of the Project
ii. KNNLs Event of Default
Breach of obligations envisaged under PDA

Unlawfully repudiated the agreement
Unreasonably withholding any approval / permission
Any representation / warranty is false or misleading
k. Termination Payments
The Termination payments for Force Majeure Events and Event of Default are set out in
the table below:
Table 35: Termination payments for Force Majeure Events and Event of Default
Sl No. Events Payment Obligations
1 Non-Political Force No Termination Payment shall be made by KNNL to the
Majeure Event Developer.
KNNL shall release the Performance Security, if subsisting.
2 Indirect Political Force No Termination Payment shall be made by KNNL to the
Majeure Event Developer.
KNNL shall release the Performance Security, if subsisting.
3 Political Force Majeure KNNL shall release the Performance Security, if subsisting.
Event KNNL shall make Termination Payment equal to 100% of
the Book Value less insurance proceeds, if any.
4 Developer Event of Default The Developer shall not be entitled to receive any
Termination Payment from KNNL
The Performance Security, if subsisting, shall be invoked
by KNNL.
5 KNNL Event of Default KNNL shall release the Performance Security
before COD The Developer shall be entitled to receive from KNNL,
Termination Payment equal to 100 % of the Book Value.
6 KNNL Event of Default KNNL shall release the Performance Security, if subsisting
after COD The Developer shall be entitled to receive from KNNL,
Termination Payment equal to 125% of the Book Value.
l. Hand back of Project Site and Project Facilities
Upon Expiry / Termination, the Developer shall comply with and conform to the following
requirements:

i. Hand back vacant peaceful possession Project Site and Project Facilities
to KNNL free of cost, in good operable condition and free from all
Encumbrances, on as-is-where-is basis;
ii. Cure the Project Facilities from any defects and deficiencies;
iii. At least 18 months prior to the Expiry Date, submit to KNNL a bank
guarantee for an amount equal to the amount of last Annual payment of
the Agreement period (Hand back Guarantee), which shall be kept
valid for a period of 24 months.
iv. Execute such deeds of conveyance, documents and other writings as
KNNL may reasonably require for conveying, divesting and assigning all
the rights, title and interest of the Developer in the Project.
m. Force Majeure Event
The Force Majeure Events are defined as given below:

Table 36: Force Majeure Events
Event Description
Non-Political Act of God, epidemic, chemical or radioactive contamination or ionizing
radiation, fire or explosion, strikes or boycotts interrupting supplies and
services to the Project
Indirect Political An act of war, embargo, riot, civil commotion or politically motivated
sabotage, industry-wide or State-wide strikes
Direct Political Change in Law, compulsory acquisition in national interest or expropriation
of any Project assets

7. Way Forward
7.1 Critical Success factors

The success of the implementation of the project under PPP would mainly depend on the
following factors:
Development of supplementary tourist activities like Cultural Center,

Laser Show, Dam Trip, adventure activities on priority basis.
Development of restaurants and food courts as there is significant
Development demand for the same in the vicinity. The same can be implemented on
Activities priority basis.
Roads and Connectivity improvement for the catchment region and
Public Convenience (Civic amenities like drinking water, toilets, etc.
parking facilities at tourist locations and signage) on priority basis.
Coordinated efforts required to involve the following local and

State level agencies:
Karnataka State Tourism Development Corporation (KSTDC)
Coordination Department of Tourism, Government of Karnataka (DoT)
District Administration (DCs office)
Local Tourist operators
Packaging Hidkal development with other tourist attractions in the

Marketing Catchment Area (Primary & Secondary).
Activities Aggressive marketing and promotion of the tourism facilities at
Hidkal Dam along with other local tourist attractions.
Figure 17: Critical Success Factors
7.2 Way Forward

The following actions need to be taken in order to proceed further on the project:
a. Finalization of shelf of Tourist Infrastructure Projects:

Adventure/Water Sports & Outbound Arena and Budget Hotel and renovated
Jaladarshini IB involving medium capital investment.
Public Park and Educational Tie- Ups involving low capital investment.
b. Critical Support Infrastructure Projects- Augmentation of basic civic amenities and

improvement of road linkages, public transportation, parking facilities & signage
in the region.
c. Finalization of project structure.

KNNL - Malaprabha - Final Feasibility Report

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Development of Tourism related

Infrastructure near Malaprabha

Final Feasibility Report

INFRASTRUCTURE Possibilities Unlimited.

3. Site Analysis ..................................................................................................... 16

4. Perception Analysis and Consultations .................................................. 21

5. Identification of Project Facilities ............................................................ 26

5. Financial Feasibility Assessment .............................................................. 34

Infrastructure Development Corporation (Karnataka) Limited Page 2

5.2 Costing Assumptions.............................................................................................................. 34

6. Project Structuring Options ........................................................................ 40

Infrastructure Development Corporation (Karnataka) Limited Page 3

Infrastructure Development Corporation (Karnataka) Limited Page 4

Figure 1: Tourism related Infrastructure ................................................................................................. 7

Infrastructure Development Corporation (Karnataka) Limited Page 5

Infrastructure Development Corporation (Karnataka) Limited (iDeCK) has been providing

i. Attract footfalls, encourage extended stays and provide a wholesome experience

Infrastructure Development Corporation (Karnataka) Limited Page 6

ii. Encourage entrepreneurship and livelihood opportunities for the locals.

The tourism related infrastructure would be a combination of recreational and support

Figure 1: Tourism related Infrastructure

1.3 Approach and Methodology

Infrastructure Development Corporation (Karnataka) Limited Page 7

Figure 2: Approach to the project

Infrastructure Development Corporation (Karnataka) Limited Page 8

The project site is located beneath the

Since Belagavi is located between Maharashtra DHARWAD

and Goa, the place has acquired a unique

Dharwad district is situated in the western

2.1 Location and Regional Settings

Infrastructure Development Corporation (Karnataka) Limited Page 9

Infrastructure Development Corporation (Karnataka) Limited Page 10

2.2 Regional Connectivity

Existing Road Network Existing Railway Network

Figure 4: Connectivity of Belagavi and Dharwad

Infrastructure Development Corporation (Karnataka) Limited Page 11

Belagavi is a famous tourism magnet owing to the following attractions:

i. Belagavi Fort: It is an Ancient Architectural

ii. Gokak Falls: Located at a distance of 60 Kms

Infrastructure Development Corporation (Karnataka) Limited Page 13

iii. Yellamma Temple: This

iv. Godachinmalki Falls: Located at a

v. Kamala Basti: Kamala Basti is an ancient Jain

Infrastructure Development Corporation (Karnataka) Limited Page 14

vi. Navilutirtha: Located 10 Kms from Saundatti, a

vii. Rakaskop: Located 16 Kms from Belagavi,

viii. Kapileshwara Temple: Located within the city,

Infrastructure Development Corporation (Karnataka) Limited Page 15

Figure 5: Malaprabha Dam in Belagavi

Figure 6: Renukasagar reservoir

Infrastructure Development Corporation (Karnataka) Limited Page 16

The project site is located near

Renuka sagara is a reservoir for the

Figure 7: Location of project site

Figure 8: Project site and key neighbouring cities

Infrastructure Development Corporation (Karnataka) Limited Page 17

3.3 Site features and Surroundings

The following table summarises the features of the Project Site:

Infrastructure Development Corporation (Karnataka) Limited Page 18

3.5 Accessibility to key locations

Regarding accessibility through public transport, Malaprabha Dam is moderately

3.6 Development Control Regulations