Sicom alongwith state-run Maharashtra Fisheries Development Corporation (MFDC) would hold upto 20 per cent cashless equity (in the form of land and existing infrastructure) while the balance 80 per cent to be held by ATD in the proposed JV company. The project cost is estimated at Rs 135 crore.

The entire cost of the project, which is aimed at promoting tourism, research and education, would be met by foreign investment through supplier's credit to be provided by the ATD Group which is a part of the famous PT Surabaya Agung Group. Currently, the Sicom managing director AKD Jadhav is in Singapore to hold final talks with the ATD Group for signing a JV agreement here shortly. Mantralaya and Sicom sources told The Financial Express that a JV company entitled Mumbai Underwater World Co would have a total equity of Rs 20 crore. The state department of fisheries would transfer the Taraporewala Aquarium complex alongwith its land in the south Mumbai to the JV company with a right to develop and operate an underwater world for a period of 30 years on a "build, operate and transfer" basis.

The JV company would demolish the existing aquarium and construct the building, offices and carpark to house the 5th generation underwater world.

The 7th floor structure would have multimedia interactive, presentation areas, library, theatre, touch pool, laboratory, office and administrative facilities in addition to the underwater world. The import, supply and installation of the material for the development of proposed underwater world would be carried out by the Oceanis Underwater World Pty Ltd, an arm of ATD. This work would include the installation of the total life support and filteration systems, acrylic tunnel, stand alone displays, theming and fitout. The construction is expected to be complete in 18 months since the signing of the JV agreement. The JV company would hire Oceanis for operating the underwater world and for which the latter would charge a management levy of 12 per cent of the total income. The JV company would absorb, employ and retain the existing aquarium staff of 22 personnel.

The JV company would pay the state department of fisheries an annual lease rental of Rs 50 lakh with an increase of 10 per cent every five years or 7 per cent of the annual gate receipts at aquarium, whichever is higher. The JV company would provide a bank guarantee to the state government for the minimum annual lease rental payable in advance. Office space of 1,000 sq mt would be offered for housing state government offices in the new complex.

Mantralaya sources made it clear that the project implementation would be as per the norms pertaining to protection of environment under the union ministry of environment, with relevance activities in the Coastal Regulation Zone.