Interesting aspect of the PRASADS IMAX Project

The roles of Government and business enterprise are normally quite different and well defined. The contemporary concept of Public Private Partnerships is bringing them together for directing their expertise in maximizing the wealth of the Nation. The partnership between Government of Andhra Pradesh and PRASADS has exactly achieved this desired goal.

Presentation of the first revenue share cheque of Rs. 94, 03,376/- by PRASADS, the private partner in the partnership, to the Government corroborates the spirit of this concept.

On this happy occasion it is apt to once again bring into the public domain the facts and figures concerning this successful partnership.

1. In the year 2000, the Government of Andhra Pradesh called for global expression of interest from interested bidders for setting up of an IMAX theatre and family entertainment centre in the Buddha Purnima Project Authority Area of Hyderabad under the private public partnership.

2. Out of the 15 Business houses across the globe, who have filed their expression of interest for the project, PRASADS Group was chosen after going through a rigorous selection process.

3. After the land was handed over for almost one and half years the project was not allowed to take off with public interest litigations. The PILs were finally disposed off in February 2002 and the project was made commercially operational in July 2003. This shows the commitment with which PRASADS Group took up this project.

4. The commitment and enthusiasm of PRASADS towards this project was so strong that they have bid for the project offering the Government a revenue share of 15% from the project compared to the nearest bid which has offered only 6.71% revenue share to the Government.

5. Government of A.P. has given 10,832 sq yds of vacant unutilized land valued in the year 2001 at Rs. 11.92 crores on a lease for a period of 33 years to PRASADS for the project.

6. PRASADS have built this project on the said land, investing Rs.65 crores.

7. The project was awarded on a Build - Own - Operate and Transfer basis for 33 years.

8. PRASADS is paying a lease rent of Rs. 6,03,450/- per month to the Government in the current year. This increases by 5% every year, at that rate it will be amazing to note that in the 33rd year of lease PRASADS will be paying a lease rent of Rs. 23,65,600/- per month to the Government.

9. Apart from the lease rent, PRASADS pay 15% revenue share to the Government, the revenue sharing partner of this project. Revenue share means a share on the turnover of the company notwithstanding whether the company earns any profits.

10. The Government gave a holiday for the revenue share from this project for first two years i.e. from 25th July 2003 to 24th July 2005.

11. For the 3rd and 4th years (25th July 2005 to 24th July 2007) Government allowed deferment of the revenue share and the differed amount is payable in 24 monthly installments from the 49th month onwards i.e. from 25th July 2007 onwards.

12. The revenue share accrued and payable to Government for the differed period of 3rd and 4th years is Rs. 9,36,62,320/-. It may be of great interest to the Government and the public at large to note that the floor revenue share fixed by Government at the time of calling bids for the project was Rs. 2.50 lakhs per month compared to the present monthly share of Rs.45 lakhs generated by the project for the month of August 2007, which is almost 1800% over the minimum expectation of the Government. This is the beauty of Public Private Partnership project. If the Private partner is committed and capable, the public exchequer gets the best advantage and Returns from the project.

13. The revenue share of 15% from this project, very certainly, is the highest that is being earned by the Public exchequer from any comparable tourism project. 14.

14. The first revenue share cheque of Rs.94,03,376/- being presented today consists of: * First monthly installment of the 3rd and 4th years differed revenue share 39,02,596. * Revenue share for the period 25th July 2007 to 31st August 2007 55,00,780

15. As against the notional value of the land given for the project by the Government on lease i.e. without parting with the title to the land, which was Rs. 11.92 crores, the Government has till date (i.e. in the 4 years) earned Rs. 12.97 crores comprising Rs. 3.05 crores in the form of land lease rentals and Rs.9.92 crores as revenue share. What a successful Project!!!

16. The project has generated direct employment for 400 people notwithstanding the indirect employment it has generated.

17. Approximately 40 million patrons have visited this facility in the last 4 years of operation resulting in considerable trade and commerce.

18. The project is generating handsome indirect revenues to the Government through taxes and license fees.

19. Another important feature of this partnership is that after the lease period of 33 years the structures of the project along with the land will revert to the State Government without any compensation payable to PRASADS.

20. Last but not the least, the present day concern of patrons - the safety and security is very extensively taken care of in the project. The building has implemented all the fire safety measures under the guidance of the Fire Department and placed closed circuit cameras across the building to cover every nook and corner of the building. I am sure all of you will recall based on the information recorded in these CC cameras Police were able to trace the person who left behind a bomb in the complex some time ago.

On this occasion we would like to touch upon certain problems faced by this project.

1. As a notified tourism project this project is eligible for Sales tax exemption for the first 5 years of its operation. But sadly it was not allowed and PRASADS has taken up this issue to the legal forum.

2. This project was exempted from entertainment tax for the first 5 years of its operation, again the same was denied on certain non-existent grounds for part of the period, which is contested by PRASADS.

3. One screen built in the project with the approval of the Government, was not allowed to operate on certain technical grounds for the last 3 and half years.

City Buzz: You Can Act In Every Film Virtually!

Now the 4-Dimensional film is hitting Hyderabad shortly. All that we are doing all these days is watching the films silently in theaters and coming out. We also know about 3D films those show Z Axis and give us a different feel. But now the 4 Dimensional films are coming in Prasad's Multiplex within a few months. The film bestows a real time feel in theaters.

If you are watching an Earth Quake scene on screen you will be given the affect as the seat you sit in rocks. When you watch a rain scene you will find a few droplets of rain falling on you. When you are watching a fire scene you will feel the heat for sometime. When you are watching a ferrying boat you feel as if you are on the river, floating. All these experiences can be undergone and you may feel that you are virtually a part of the film.

Is that not a great experience?

Harry Potter premiere held at IMAX

The Indian premiere of ‘Harry Potter - the order of the phoenix’ was held at Prasads IMAX screen at 9 am on 13 July. Anam Ram Narayan Reddy, the minister of Cinematography and tourism for Andhra Pradesh attended this premiere.

Speaking on the occasion Ramesh Prasad of Prasads said, “This film generated very good interest among the children. Millions of the books were sold prior to the film release. Most of the children in theater starts anticipating dialogues and scenes as they have already read the book. The children are thrilled watching the 3D effects in the largest 3D screen in the world - Prasads that is. Earlier version of Harry Potter created the world record in terms of attendance. I hope that this film too would surpass that record. Incidentally, Prasads is the only IMAX screen that is screening the 3D version of the film. It will a privilege to the movie lovers in Hyderabad and AP.”

Distributor Jagadeeswara Reddy said, “I would like to thank Warner Brothers for giving me the opportunity to release Telugu, Hindi and English version of 35mm format in entire AP and parts of Marathwada. The Telugu version will release in the last of the month. We will be releasing 2ith 35 prints. This film generated tremendous hype among the children by transporting them into a different magical world.”

Prasad multiplex gearing up for 4d cinema

Prasad Multiplex with the world's largest 3d Imax screen will soon enthrall Hyderabad audience with 4d cinemas.Prasad Group Chairman Ramesh Prasad announced this during the premiere of Harry Potter and the Order of the Phoenix-3d today(July 13th).Prasadz 4Dcinema theatre will be ready in the next 4 months.

What is 4Dcinema?

4d theater effects brings the show to life for the audience by adding the sense of touch to the sights and sounds of a normal presentation.It is possible through some in-theatre effects.The 4D effects have 3 elements:Wind, Smell and Fog.these techniques simulate a variety of sensations so the audience are able to feel as though they are participating in the events.Touches, tickles, sprays of water,blast of a wind special effect and seat shaking are just a few of the techniques used to draw the spectator into believing they are actually part of the show.

Spiderman3 world record at Prasads IMAX

Hyderabad is performing extremely well in the IMAX global map. After creating world records for highest number of patrons for Spider Man 2 and Happy Potter, Prasads IMAX created another world record for highest number of patrons for the latest IMAX release in Hyderabad - Spider Man 3. 55000 patrons have watched the IMAX version of Spiderman 3 in Prasads so far. This number will grow as Spider Man3 is still going strong.