PIM_Indira_Market_feb 2016

Project Information Memorandum ForRedevelopment of Indira Market, Dehradun in PPP ModeMUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY (MDDA) GOVERNMENT OF UTTARAKHAND March 2016

DISCLAIMERThe information contained in this Project Information Memorandum (“PIM”) Document or subsequentlyprovided to Bidder, whether verbally or in documentary form by or on behalf of the Mussoorie DehradunDevelopment Authority (“MDDA”) or any of their employees or advisors, is provided to the Bidder on theterms and conditions set out in this PIM Document and any other terms and conditions subject to whichsuch information is provided.This PIM Document is not an agreement and is not an offer or invitation by the MDDA to any party otherthan the Applicants who are qualified to submit the Proposal (Bidders). The purpose of this PIMDocument is to provide the Bidder with information to assist the formulation of their proposals. This PIMDocument does not purport to contain all the information each Bidder may require. This PIM Documentmay not be appropriate for all persons, and it is not possible for the MDDA, their employees or advisorsto consider the investment objectives, financial situation and particular needs of each party who readsor uses this PIM Document. Each Bidder should conduct its own investigations and analysis and shouldcheck the accuracy, reliability and completeness of the information in this PIM Document and wherenecessary obtain independent advice from appropriate sources. The MDDA, their employees andadvisors make no representation or warranty and shall incur no liability under any law, statute, rules orregulations as to the accuracy, reliability or completeness of the PIM Document.The MDDA may in their absolute discretion, but without being under any obligation to do so, update,amend or supplement the information in this PIM Document.

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM SCHEDULE OF BIDDING PROCESSThe MDDA would endeavour to adhere to the following schedule:Sr. No Activity Description Date 1. Site Visit 2. Last date for receiving queries 3. Response to bidders queries 4. Pre-proposal meeting 5. Proposal Due Date6. Opening of Other Submissions7. Opening of Price ProposalsMUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY i

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM TABLE OF CONTENTS1 INTRODUCTION ....................................................................................................................................... 32 MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY ................................................................. 33 OBJECTIVES AND STRUCTURE OF THE PIM.................................................................................... 44 ABOUT THE PROJECT ........................................................................................................................... 45 PROPOSED INTERVENTIONS ............................................................................................................... 7 5.1 Area Requirements .................................................................................................................................... 7 5.2 Development Control Norms ..................................................................................................................... 7 5.3 Social and Environmental Considerations ................................................................................................. 86 PROJECT SCOPE & POSSIBLE STRUCTURE.................................................................................... 87 FINANCIAL ASSESSMENT AND BUSINESS PLAN............................................................................ 97.1 GENERAL ............................................................................................................................................. 97.2 FINANCIAL ASSUMPTIONS .............................................................................................................107.3 CONSTRUCTION COST ASSUMPTIONS: ......................................................................................107.4 ESTIMATED LANDED PROJECT COST .........................................................................................107.5 PHASING AND FINANCING ASSUMPTIONS .................................................................................107.6 PROJECT REVENUE ASSUMPTIONS.............................................................................................107.7 PAYMENTS TO MDDA.......................................................................................................................107.8 KEY FINANCIAL INDICATORS...................................................... ERROR! BOOKMARK NOT DEFINED.8 IMPLEMENTATION FRAMEWORK.......................................................................................................118.1 PROJECT STRUCTURE ....................................................................................................................118.2 IMPLEMENTATION STRUCTURE ....................................................................................................118.3 LEASE PERIOD ..................................................................................................................................118.4 BID PARAMETER ...............................................................................................................................118.5 RECOMMENDED IMPLEMENTATION STRUCTURE.....................................................................128.6 RECOMMENDED INSTITUTIONAL STRUCTURE..........................................................................12(I) ROLE OF DEVELOPER ..........................................................................................................................12(II) MDDA’S RESPONSIBILITY....................................................................................................................128.7 CONTRACTUAL STRUCTURE .........................................................................................................12(I) DEVELOPMENT AGREEMENT .............................................................................................................12(II) LEASE DEED ...........................................................................................................................................13(III) SUB-LEASE DEED .............................................................................................................................139 RISK SHARING........................................................................................................................................13MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 2

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM1 INTRODUCTIONUttarakhand was formed on the 9th November 2000 as the 27th state of India, when it was carved out ofnorthern Uttar Pradesh. Located at the foothills of the Himalayan mountain ranges, it is largely a hillystate, having international boundaries with Tibet in the north and Nepal in the east. On its north-west liesHimachal Pradesh, while on the south is Uttar Pradesh. It is rich in natural resources especially water andforests with many glaciers, rivers, dense forests and snow-clad mountain peaks. It‟s truly god‟s land(devbhoomi). Dehradun is the provisional capital of Uttarakhand.Dehradun is situated in the north-west corner of Figure 1 Regional Linkages of DehradunUttarakhand. It is bounded on the North and in thenorthwest by the district of Uttarkashi, in the east bythe district TehriGarhwal and Pauri-Garhwal, in thesouth by the district of Saharanpur (Uttar Pradesh)and its southern tip touches the boundary of districtHaridwar. Its western boundary adjoins the Sirmur(Nahan) district of Himachal Pradesh. Dehradun iswell connected by road with other important regionaltowns in Uttarakhand State and also with surroundingstates. Two National Highways namely NH– 72 andNH – 72A passes through the city connectingDehradun with towns like Haridwar, Rishikesh&Saharanpur. SH- 55 connects Dehradun withMussoorie. Dehradun is also well connected withrailways to other important towns in country andserved to some extent by air. Figure 1 presents theregional linkages of Dehradun district.2 MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITYDuring the post independence period, Dehradun as a city has registered an unprecedented growth in itspopulation as well as physical expansion. Till the seventies there was no serious effort to chanalise thehaphazard growth of the city. However with a view to check the haphazard growth of Dehradun the Stategovernment declared it as a Regulated area in 1963 under UP regulation of Building and BuildingOperation Act 1958 but the desired objectives could not be achieved as it performed only regulatoryfunctions.MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 3

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUMMussourie Dehradun Development Authority was formed in year 1984 under Uttar Pradesh UrbanDevelopment and Town Planning Act, 1973 to check the unplanned and haphazard development in thetwin cities.3 OBJECTIVES AND STRUCTURE OF THE PIMThe objective of the PIM is to present the facts related to the project and a summary of techno-economicfeasibility study and the project contours to the prospective bidders. Accordingly, PIM is structured in thefollowing sequence: a. Project Location and General Site Profile b. Market Potential Assessment c. Development Controls d. Suggested Project Components e. Infrastructure requirements f. Financial Assessment and Business Plan g. Implementation Framework4 ABOUT THE PROJECT4.1 Indira market is located near the Clock Tower („GhantaGhar’), which is the prime area of CBD of Dehradun. Mussoorie Dehradun Development Authority (MDDA) owns a parcel of land admeasuring 16,557sqmt (approximately 4.0 acres) near the Clock Tower, in Dehradun (the “Site”).MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 4

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM4.2 With a view to develop the Site so that the current occupants/shop owners of the Indira Market (beneficiaries) could be relocated in-situ along with developing commercial complex, multilevel car Parking, along with basement Parking with emphasis on providing public facilities and overall commercial development of the area in partnership with a suitably identified private partner, MDDA would invite applications from interested and competent entities for the Redevelopment of Indira Market (the “Project”), in PPP mode. Land for the Project will be provided to the Developer on lease basis for 90 years including the construction period of 6 years.4.3 MDDA invites detailed proposals (Qualification Submissions and Price Proposal, collectively referred to as the „Proposal‟) from Bidders for the Project (“Qualified Applicants” and hereinafter referred to as the “Bidder” or “Bidders”), for the Project.4.4 Existing Situation of the Physical Structures on the site The existing Indira Market and MDDA Parking has an area of 16267 sq.mts.It is seen that shops occupy 27% of the total site area, whereas the road area is 10% and the open spaces occupy almost 62% of the site area. The existing open spaces can be categorised into circulation spaces and unused open spaces. The public land use is minimal and is constituted by temples and public toilets. Table 1: Existing Ground Coverage (land-use wise)Component Ground Coverage (sq.mts.) %Commercial 4546 27.95%Residential 48 0.30%Public 90 0.55%Roads 1719 10.57%Open Space (including MDDA 9864 60.64%parking lot) 16267 100.00%TotalSubsequent to this an analysis of built up area and consumed FSI was carried out which isindicated in Table 2.Component Table 2: Existing FSI Utilised Built Up Area (sq.ft.) %MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 5

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUMMDDA Shops 9986 19.58% 77.50%Other Shops 39521 1.01% 1.90%Residential 517Public 969Total BUA 50993Total Site Area 175097Total FSI Consumed 2.51The table above indicates that the MDDA buildings occupy around 20% of the total built up areawhereas the other shops have a major share of 77.5%. Also another interesting fact is that theFSI consumed is only 0.29, which indicates that there is lot of potential of utilisation of this FSI.The MDDA building byelaws state that for commercial land uses a maximum FSI of 2.00 ispermissible.4.5 Site Potential A higher sense of ownership amongst the beneficiaries will lead to better maintenance of the campus and create a better image of the market. Increased footfalls will increase business for the beneficiaries. De-congestion of immediate roads in vicinity due to absorption of some of the on- street Parking. An environment friendly ambience created which is sensitive to the existing natural features within the project area. Easier for the visitors to navigate within the complex and locate shops by category of goods sold.4.6 Current Assessment and Concept of Development Indira Market has been developed and maintained byMDDA. With an objective to create a planned market for the current occupants, shop owners / beneficiaries of the Indira Market spread over 16,557sqmt (approximately 4.15 Acres) and at the same time to unlock the commercial value of the Project Site, Mussoorie Dehradun Development Authority (MDDA) decided to invite competitive proposals from eligible bidders for designing, development, implementation, financing, operation and maintenance on lease basis. The Project Site will be developed as a commercial complex/ business centre comprising of office space, commercial space, multiplex/entertainment area & facilities/commensurate residential areas, with emphasis on overall development of the identified area in partnership with a suitably identified investor selected through an open transparent competitive bid process on the terms and conditions to be set forth in the Development Agreement.The exact modalities of bidding, including the financial bid parameter on the basis of whichdeveloper shall be selected is developed by MDDA, depending on the total developmentMUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 6

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM potential, market demand and the likely realization from commercial as envisaged under this concept note. This document contains a broad estimate of the development potential and an outline of the proposed PPP intervention. The Private Sector Partner would be entitled to determine, levy, demand, collect, retain and appropriate User Charges from the Users of the Project Facility.5 PROPOSED INTERVENTIONS It is proposed that the Redevelopment of existing Indira Market shall be done with the help of a private partner under PPP mode. The broad interventions proposed are: Main revenue stream:  Revenue from Parking (Parking charges shall be decided and notified by MDDA time to time)  Revenue from long term sub-lease of residential use built-up space  Revenue from rental of Commercial use built-up space  Revenue from Advertising Spaces Main expenditure stream:  Construction cost of Beneficiary Shops, Multi-Level Car Parking, Residential / Commercial Complex and on site infrastructure  Operation and Maintenance cost of the entire complex for the entire lease period of 90 years from the commencement of Commercial Operations5.1 Area Requirements Space allocation for main components of the proposed Redevelopment of Indira Market shall be as per the proposed Area Statement in the schedule 1 to this PIM. It is proposed that developer may develop residential or commercial complex or mixed use in the identified area inside the project area- Part C of the Area statement, admeasuring an Area of 4064 Sq Mt for recovering the Investments made by him in redevelopment of entire complex.5.2 Development Control Norms The development potential for Redevelopment of Indira Market along with construction of commercial space has been estimated with reference to the development control norms as specified in the Mussoorie Dehradun Development Authority (MDDA) By-Laws1to be provided to the prospective bidder:1 Extracted from MDDA website. Bidders must reconfirm from MDDA office (changes to this, if any).MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 7

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM 1. The Land-use of the site has been changed from Commercial to Mixed Land-use 2. Effective Ground Coverage shall be permitted up to 50% of the Plot area 3. Floor Area Ratio of 2.50 shall be allowed. 4. Maximum Building Height of 30 Meters shall be allowed 5. set back requirements as per building bylaws5.3 Social and Environmental Considerations i. The facility should have arrangement for physically disabled persons in terms of access to Indira Market and toilet facilities ii. The facility should be eco-friendly in terms of disposal of waste water as well as solid waste. iii. Provision for Rain water harvesting should be made in the proposed redevelopment plan iv. Public convenience component of the project shall be accessible free of cost to the users of the facility.6 PROJECT SCOPE & POSSIBLE STRUCTURE6.1 The overall scope of the proposed PPP project would be to redevelop the Indira market by rehabilitating the existing shopkeepers operating out of the Market in the proposed beneficiary complex; construct a Multi Level Car parking to accommodate the statutory requirement of parking and the spillover parking requirement from the development of the complex (the \"Mandatory Facilities\"; and to develop the commercial/ residential units for the sale by the developer to recuperate his investments (the \"AdditionalFacilities\"). . Broadly, the obligations and rights of the private developer under the project contract would cover the following:  The selected bidder shall be responsible for Redevelopment of Indira Market which includes designing, development, implementation, financing, operation and maintenance on lease basis, the Project Site as a commercial complex/ business centre with emphasis on overall development of the identified area within a stipulated time period. It may be noted that the title of the land shall remain with MDDA and the selected developer will only have rights (and obligations) as specified in the development agreement to be signed.  The project components and area allocation must be adhered as per Area Statement attached in schedule 1.  The Beneficiary Complex, constructed based on the Architectural designs provided by MDDA shall be built and handed over to MDDAMUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 8

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM  The Construction of Residential &Commercial Facilities may also commence after the developer has signed the Development Agreement and Lease Deed with MDDA; however, the Building Use Permission shall only be issued to the occupants after all the beneficiaries identified are rehabilitated in the beneficiary complex.  The selected bidder shall be responsible for adhering to the applicable development control norms and obtaining all necessary approvals for the construction.  The bidder will be required to get approval from MDDA on the master plan and meet any requirements specified by MDDA in this regard.  The selected bidder shall be given the rights to recover his investment in the project through revenue from the residential / commercial complex or mixed use complex.6.2 Within the broad scope of the proposed PPP project, several project structures are possible. While the actual structure will be developed by MDDA, it will be necessary to take into consideration the following aspects:  The title of the land will not be passed on to the selected developer. However, the project contract has to ensure that the developer has a legal right to develop and manage the project on lease basis. Mortgage of Dwelling Unit/shop by sub-lessee is allowed.  The selected developer will recover his investment, to collect the parking charges, premium / rent of the residential complex; rental of commercial area and advertising revenue.  The Operation and Maintenance of the Mandatory Facilities and AdditionalFacilities shall be carried out by the Developer for the entire Lease Period.7 FINANCIAL ASSESSMENTAND BUSINESS PLAN7.1 General Based on the demand studies carried out by the Consultants and independent assessment of MDDA, the suggested components of the Project are Beneficiary Shops, Multi-Level Car Parking (MLCP), Residential / Commercial Complex for Private Developer, space for transit for public transport abutting Rajpur Road and on-site infrastructure. The Financial viability for suggested components has been assessed with respect to key indicators such as Project Internal Rate of Return (IRR), Equity IRR and Debt Service Coverage Ratio (DSCR).MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 9

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM The Summary of the financial analysis of both the cases is as below:7.2 Financial Assumptions The financial analysis for the project is based on the following set of assumptions: 1. The total area of the land is 16,557sqmt (approximately 4.15 Acres). 2. Lease Period of 90 years (including construction period) 3. Construction of the project including on-site infrastructure should be completed within 24 months from the date of commencement of construction (24 months for construction have been assumed on condition of land being made availableto the developer clear of any incurmberance).7.3 Construction Cost Assumptions:Based on the assumptions, the total construction cost of the project comes to Rs96.88Cr.7.4 Estimated Landed Project Cost To arrive at landed project cost, various other components apart from construction cost like insurance cost, financing cost and interest during construction have been considered. The Landed Project Cost (Essential facilities) is estimated around Rs. 106.47 Cr.7.5 Debt and Equity Assumptions The project is assumed to be financed with 70% debt and 30% equity.7.6 Project Revenue Assumptions Following will be the revenue streams to Developer.S No. Revenue Heads1 Revenue from Parking Area2 Revenue from sub-lease of residential complex3 Revenue from rental of commercial complex4 Revenue from Advertising7.7 Payments to MDDA On the basis of above financial analysis, followings are the income streams to MDDA.A. Land Premium:The developer will also pay 25% of the land premium as quoted at the time of signing of Landlease deed. The remaining land premium will be paid in three instalments over a period of 3years from the date of signing of Land lease deed. An interest of Bank Rate + 4% per annumMUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 10

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM shall be payable on such balance land premiums, which are paid over a period of 3 years from date of signing of Land lease deed. B. One Time Lease Rental: The developer will pay onetime lease rental before signing of the Land lease deed at the rate of 4% of the land premium quoted by the successful bidder and accepted by MDDA. C. The developer will also pay concession payments of Rupees One Crore annually starting for a period of 20 years. The concession payments shall escalate at the rate of 10% every third year.8 IMPLEMENTATION FRAMEWORK8.1 Project Structure a. It is envisaged that the project shall be implemented on a PPP mode. The selected bidder shall sign a long term lease deed and a Development Agreement with the Authority, by which it shall be entitled to use the land for construction of Mandatory and AdditionalFacilities. b. The final users of the facility (residents) shall sign sub-lease agreement with the selected bidder, and pay him one time lump-sum premium for the rights to use of the facility. They shall also be bound to pay to MDDA a token lease rental for the entire lease period for the facility.Mortgage of Dwelling Unit by sub-Lessee is allowed. c. The users of the commercial area shall sign a leave &licence agreement with the Developer; and pay to the developer rental based on the agreed rates. d. The sub-lease agreement shall contain a clause for survival of the sub-lease deed in case of termination of lease deed between MDDA and selected bidder. e. The Developer/Lessee shall have right to collect maintenance charges from users of Residential & Commercial Facilities.8.2 Implementation Structure The Projectshall be implemented by a Special Purpose Company incorporated under the Companies Act, 1956; for the implementation of the project. MDDA/Government of Uttarakhandmay or may not hold the facilitating equity in such SPV.8.3 Lease Period This project will have a 90 (ninety) years lease period inclusive of Construction Period of around 2years in (subject to land being mad available to the developer clear of incumberance).8.4 Bid Parameter Upfront Land Premium amount in Rupees being offered (subject to minimum of Upfront Land Price of Rs15 Crores) is the sole bid parameter.MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 11

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM8.5 STAMP DUTY Stamp Duty as per the applicable rates shall be paid to the registrar by the developer.8.6 Recommended Implementation Structure The project is proposed to be implemented through a Public Private Partnership (PPP) model. The implementation will be through a Special Purpose Vehicle (SPV) or through an alternative suitable structure wherein the Developer selected through a competitive bidding process would enter into a Development Agreement with MDDA to Develop, Build, Operate and Maintain, Project Facilities over the pre-agreed Lease period and Transfer the same to the MDDA or its designated agency at the end of the Lease period / termination of the Development Agreement or Lease Deed.8.7 Recommended Institutional Structure The project would be implemented through a SPV established by the selected private developer/consortium. MDDA would provide land to the SPV on a long-term lease of 90 years, including 2years of construction, through a binding lease deed. The relationship is shown below: (I) Role of Developer The Developer should achieve financial closure. It would be the responsibility of the Developer to undertake planning, design, construction, commissioning, marketing, operation and maintenance of the Project facilities. The Developer would be encouraged to use innovative technology and design for creation and expansion of the other project facilities as per the market demand and subject to the design fulfilling the requirements and performance criteria stipulated by MDDA. (II) MDDA’s Responsibility MDDA shall be responsible to give land on lease to the Developer for developing the Project components. The land required for creating the Project Facilities will be leased to the Successful Bidder/Developer over the Lease Period in terms of the Lease Agreement.8.8 Contractual Structure (I) Development Agreement MDDA shall enter into a Development Agreement with the Successful Bidder/Developer, giving the requisite rights for construction, operation and maintenance of the project facilities throughout the Lease Period. The responsibility for regulating as per the Development Agreement will rest with MDDA, who will appoint an Independent Engineer and/or Independent Auditor, as required to provide professional support for this regulation. At the end of the Lease Period, the Project Facilities, which are to be in a fullyMUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 12

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM operational and satisfactorily maintained condition, would be transferred to MDDA or its designated agency in terms of the Development Agreement. (II) Lease Deed The Lease Period would be 90 years (including construction period) from the date of signing of the Lease Deed. Upon the expiry of the Lease and/or the Development Agreement, the property may be offered at the sole option of MDDA to the Developer, on fresh Lease Deed at premium, lease rent and other conditions, which the MDDA may determine, and the Developer shall have the first right of refusal. (III) Sub-lease Deed The sub-lease deed would be a tri-partite agreement, between Lessor (MDDA), Lessee (selected bidder) and Sub-lease (allottee). The Sub-lease shall pay one time lease rent to lessee and annual lease rent (token amount) to Lessor directly. The sub-lease deed shall contain the condition of survival of sub-lease even in case of termination of lease deed.9 RISK SHARINGSr.No Type of Risk Description Mitigation Measure1 Demand Risk/ i. Low Customer Footfall. Can be countered through proper Revenue Risk advertising strategy. ii. Revenue Risk Revenue risk would be passed on to the developer.2 Financial Risk -Parking Fee being abolished -we have assumed occupancy of 50% for in the adjacent complex may parking, increasing at 5% per annum, impact the revenue envisaged and stabilizing at 75%. from parking in Indira Market. Financial Risk would be transferred to Escalation in Cost of Material the developer. The developer will factor in the cost possible escalation in cost of material and manpower during the construction period. The developer will submit its bid based on the cost and revenue estimates.MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 13

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM3. Operation and i. O&M Cost escalation i. The developer is expected to factor in Maintenance cost escalations arising out of operation ii. Repair and Maintenance of and maintenance of project facilities Project Facilities during the Lease Period before submitting its bid. The developer will be responsible for repair and maintenance of the project facilities for the entire lease period.4. Infrastructure Quality and time required for The developer will be bound to complete construction construction of beneficiary complex within stipulated time of two years from the date of handing over to the site to the developer clear of encumbrances and with all the clearances in place and from the date of signing of Development Agreement and Lease deed; The developer is envisaged to use modern construction technologies to ensure structural safety.5. Political and i. Allotment of compensation i. Participatory Stakeholder consultationAdministrative Risk packages to beneficiaries has been conducted by MDDA with stakeholders to determine the final compensation package offered to beneficiaries.6. Business Risk ii. Shifting of Beneficiaries ii. MDDA will be responsible for shifting during construction to of beneficiaries to temporary kiosks temporary kiosks and during construction of beneficiary relocating them to beneficiary complex. They would also be responsible complex after construction of for relocating them to the beneficiary the latter. complex once it is constructed. The cost of construction of beneficiary Breach of contract by complex has to be borne by the Developer or Premature developer. The temporary relocation cost termination by Developer will be borne by MDDA. In case of event of default by the developer ,MDDA can invoke the Performance Security submitted by theMUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 14

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM developer as per the terms of the agreementMUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 15

REDEVELOPMENT OF INDIRA MARKET, DEHRADUN, UTTARAKHANDPROJECT INFORMATION MEMORENDUM Schedule 2: Timelines of the Project ImplementationACTIVITY Milestone Time Period for Achievement of MilestoneDate of LOA A ASubmission of Performance Guarantee (5% of contract value) - A+15Submission of Project Development Fees - A+30Submission of Share of fees of Independent Engineer - A+30Signing of Development Agreement B A+30Payment of Upfront 25% Lease premium - BPayment of one time Lease rental (4%) -Signing of Lease Deed B BPayment of Stamp Duty C BSubmission of Project PlanPayment of Second Installment of Lease Premium with bank charges BPayment of Third Installment of Lease Premium B+15Release of 50% Performance Security B+365Payment of Fourth Installment of Lease Premium B+730 B+ 730 B+730MUSSOORIE DEHRADUN DEVELOPMENT AUTHORITY 16