Noida Film City, a flagship project of the UP government, is expected to lead to a five-fold rise in real estate prices in the region, according to Arun Vir Singh, CEO of the Yamuna Expressway Industrial Development Authority (YEIDA).
"There are massive opportunities associated with the film industry, not to mention the investment potential. It is expected to lead to five times growth in real estate values – the Rs 5,000 crore investment is expected to generate benefits worth Rs 25,000 crore,” Singh told Moneycontrol, a day after YEIDA announced that Fortune 500 company CBRE would prepare the blueprint for the film city.
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“The biggest benefit of establishing a film city is that it generates huge employment. All big projects such as the Jewar airport project and now the film city project are expected to have a multiplier effect," he said.
Housing would be required for everybody working in the film city, he added.
Property consultant CBRE South Asia was on December 14 selected for making the detailed project report (DPR) of the proposed film city near Noida.
The consultant has been given a 60-day window to compile the detailed feasibility study for the project, and it should be ready before February 13.
“The DPR for the Film City proposed to come up in Sector 21 of YEIDA will be made by CBRE South Asia, which ranks 128 in Fortune 500 companies. The firm will submit the DPR to YEIDA in a period of 60 days,” Singh told Moneycontrol.
CBRE was selected under the CQCCBS – combined quality cum cost based selection– process. “It was the best among the four bidders,” Singh said, adding CBRE brings in global experience of having executed similar projects in Ireland, California and in Australia.
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“It will be mandatory for them to liaison with other stakeholders and suggest financial and development options in the DPR. Once that is ready, it would be sent to the cabinet and once the cabinet finalizes the developmental model, it would go for global bidding after which the developer would be selected,” Singh said.
The process to be followed will be exactly the same as the selection criteria for Jewar International airport, he added.
The land cost for the project would be borne by the state government and YEIDA. The developer would make up through realisation from rent and lease, he said.
A pet project of Chief Minister Yogi Adityanath, the Film City along the Yamuna Expressway is planned on an area of 1,000 acres and will be just six kilometres from the upcoming international airport in Jewar and 12 kilometres from the Eastern Peripheral Expressway, officials said.
An e-tender was floated on November 29 to invite firms to conduct a feasibility study for the project and four companies had applied for the work, the officials added.
Adityanath had on September 18 directed YEIDA to submit its proposal for establishing a film city to the state government. This is the second biggest infrastructure project in the region after the Jewar International Airport.
YEIDA has been exploring three models – public private partnership, the authority alone or another single developer to develop the project. The DPR will contain the details of the layout of the sector dedicated for the film city project and the financial feasibility of the project.
During his visit to Mumbai on December 2, Adityanath had made a mega investment push for the state and met several industrialists, Bollywood personalities, producers, directors and experts related to the film industry.
