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Infrastructure quality key to success of Hyderabad's Kokapet township: Industry insiders
ET Realty  |  July 26, 2019

TNN Hyderabad

On Wednesday, Arvind Kumar, principal secretary of the department of municipal administration and urban development (MAUD) said that the township is expected to come up in the next five to seven years.

 

While supporting the Telangana government’s move to develop an integrated township in Kokapet &ndash about 10 kms from Hi-Tec City &ndash industry insiders said that the authorities must first strengthen basic infrastructure in the area, to attract big-ticket investments. Already, the core IT belt is reeling under various civic crises, including water shortage and traffic congestion.

 

On Wednesday, Arvind Kumar, principal secretary of the department of municipal administration and urban development (MAUD) said that the township is expected to come up in the next five to seven years. Speaking at a conference on ‘Rise Infrastructure Hyderabad &ndash Enhancing Liveability’, organised by Confederation of Indian Industry (Telangana) along with the state government, he said that the project will house 90 million square feet (sft) of office space and create five lakh jobs. At present, Kokapet has about 4.5 million sft of office area.

 

“Integrated township that wasn’t an economically viable proposition 10 years ago &ndash because of ample space in the core IT zone &ndash is now the way forward because of overcrowding in Gachibowli, Financial District etc. But, it will be tough to market the project if issues of water and public transport &ndash both missing from most parts of the western corridor aren’t resolved,” said the proprietor of a leading construction firm.

 

With the government likely to auction about 200 acres of land in Kokapet, over the next two to six months, developers feel that it should also maintain a reasonable price point. The current land cost here is a stupendous Rs 30 core to Rs 32 crore per acre. “Players buying at this rate will end up struggling to sell their product. It isn’t feasible.

 

The government rate should be around Rs 18 crore per acre,” said R Suresh Kumar, senior vice president (business operations), Prestige Group (Hyderabad). He, however, upheld Kokapet as the ‘next big thing’ in Hyderabad’s realty market. The group is developing 1.8 million sft of IT office and 1.6 million sft of residential space . Incentives to home-buyers and employers, setting shop within such integrated townships, was another suggestion put forth by M Nanda Kishore, managing director and CEO of Ramky Estates & Farms.