The Indian Innovation Awards, 2005 Infrastructure Leasing & Financial Services (IL&FS)

Jal Mahal Tourism Project Innovation Report I. The Context (1) Jaipur, the capital city of Rajasthan and known worldwide as the Pink City, has a unique presence on national & international tourism map. It also falls on the famous golden triangle (Delhi- Agra-Jaipur). About 800,000 tourists visit Jaipur every year including 175,000 foreign nationals Jal Mahal is an 18th century pleasure palace located in the middle of the Mansagar Lake. Mansagar Lake is a 300 acre lake surrounded by the Nahargarh hills. The Jal Mahal Project Area falls in the Jaipur Amer tourist corridor and is the only major waterbody in Jaipur. The project location is in the close vicinity of key tourist attraction viz. Amer, Jaigarh and Nahargarh Forts and walled city of Jaipur. Almost every tourist, visiting Jaipur passes through this area. The project areas has the potential to be transformed into an a major tourism destination The lake and the project area was an ecological disaster, with the dumping of untreated sewage from the city and poor upkeep. The monument itself is poorly maintained with no formal access possible for tourists During the past, several attempts have been made by Government of Rajasthan to restore the ecological and environmental condition of the lake and its adjoining area. However, none of these attempts yielded any positive result because of paucity of funds and non-incentivised approach to take up restoration. In addition, these measures were not able to provide a sustainable lake restoration and maintenance program of the area on a long term and continuous basis IL&FS was entrusted the job of finding a permanent solution to the development requirements of the project in the year 2000. Through its jointventure company with Government of Rajasthan, PDCOR Ltd. IL&FS institutionalized a careful process of project development and structuring. It was able to design a restoration initiative, source the resources for project implementation and innovatively involve the private sector in sustainable development of the project area As of date, most of the lake restoration program has been completed and the private sector partner for area development identified. The full area development is expected to be completed within the next 2-3 years. The project has set a benchmark in sustainable development of the urban water bodies with private sector participation

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_____________________________________________________________________________ Category Physical Infrastructure Development 1

Jal Mahal Tourism Project

The Indian Innovation Awards, 2005 Infrastructure Leasing & Financial Services (IL&FS)
II. Implementation of Innovation (1) Arrangement of funds for lake restoration (a) As part of financing effort, lake restoration funds of Rs.180 million was arranged for renewal of the lake eco- system from MoEF, GoI, as a grant under the National River Conservation Program. The balance fund is being provided by the State Government through its nodal agency, Jaipur Development Authority (JDA) This is the first lake conservation project sanctioned by MoEF, GoI for the State of Rajasthan. Further, while sanctioning the grant amount, MoEF, GoI has been quite appreciative of the sustainability model, and has recommended that a similar structure be considered for restoration of Udaipur Lake and other such environmentally sensitive restoration projects

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Implementation of the lake restoration program: JDA was appointed as the nodal agency for lake restoration part of the project. As of date most of the lake restoration components have been implemented Procurement of Private Sector Developer (a) Private sector developers were invited during 2003 to develop identified tourism components on the land adjoining the lake. The process of selection of the developer was carried out through a well advertised bidding process. Subsequent to the detailed process of bidding, the project for tourism development has been awarded to a consortia led by M/s. KGK Enterprises The tourism products which are proposed to be developed in the site would include: (i) (ii) (iii) (iv) (v) (vi) (vii) Convention Centre and Art Gallery Multiplex and Entertainment Centre Craft Bazaar Arts and Craft Village Resort Hotels Restaurants and Food Court Public park and gardens responsible for restoration and

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The developer is also maintenance of the Jal Mahal (c)

The lease rental paid by the private sector developer would be used to discharge the maintenance obligations of the lake on a continuing basis

_____________________________________________________________________________ Category Physical Infrastructure Development 2

Jal Mahal Tourism Project

The Indian Innovation Awards, 2005 Infrastructure Leasing & Financial Services (IL&FS)
(d) The project envisages a total investment of Rs.1.5 billion. The development will be as per the design guidelines outlined in the bidding documents, which stipulates restrictions on total useable area for development. This would ensure a complete green space, low density development

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Impact Assessment The Mansagar Lake Area comprises of components that are diverse in nature and hence the project beneficiaries and stakeholders also reflect diversity (1) Tourism Community: The Amer Road, along which Mansagar lake is situated, is a major tourism strip of Jaipur City. The establishments along the road house number of handicraft emporiums and eateries. Trident and Holiday Inn are three star hotels located on the road. Apart from these attraction points, a network of tourist interest sites is situated in the project influence area. The Maharani ki Chattri on the Amer Road, the Kanak Temple Complex in North, the Parasram Dwara on the Amber road, and the Royal Cenotaphs on Amer road are major tourist attraction. Restoration of Mansagar Lake Area including Jal Mahal Monument would be major stimulus for the conservation of important elements of cultural heritage of the project area. The Project would integrate these tourism sites and lead to the conservation and revitalization of traditional arts, food handicrafts, festivals, drama, customs and ceremonies will add to the cultural benefits to the city. From an economic perspective the project would generate additional economic benefits as well provide for employment generation Improvement of ground water: At present since the majority of the sewage is flowing to the lake body untreated there is severe contamination of the ground water in and around the lake area. This contamination makes the ground water unfit for drinking and in addition results in a serious health hazard. Through the project the lake would receive treated water and the lake would be maintained on a continuous basis. This is expected to drastically reduce the extent of health hazard presently posed by the contaminated lake Migratory birds: The project area attracts a number of migratory birds during the winter season. In order to enhance the projects attractiveness to the various species, special attention is being made to develop nesting islands within the lake. Further, the attractiveness of the annual bird watching fair would be further enhanced Government: The project will provide a Indirect Beneficiaries: State replicable format for Lake Restoration Projects to be implemented on publicprivate partnership basis. This would strengthen the Public - Private Enterprises in developing their expertise and skills in project implementation

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_____________________________________________________________________________ Category Physical Infrastructure Development 3

Jal Mahal Tourism Project