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March - April 1999
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Emerging Opportunities
A Dream Running on the Road: Expressways
NRSA to suggest road design mode
The Central government had recently unveiled the Rs. 1,30,000 crore expressways project – crossing the entire country and covering the distance of 7,000 km. The six lane expressways will be linked to the ‘Golden Quadrilateral’ networking the metros and major ports of the country. The dream project, will link Amritsar and Kanyakumari on the north-south corridor and Calcutta and Mumbai on the east west. The National Highway Authority of India (NHAI) – in addition to its originally assigned task of building and maintaining National Highways had been given the responsibility of constructing the 6,000 km of Golden Quadrilateral and 7,000 km cross country corridor. Meanwhile, in an effort to integrate the development of various road projects, government has brought all the road projects under one programme titled National Highway Development Programme. Under the new programme, the four-laning of the ‘golden quadrilateral’ will be given top priority while connectivity with the ports through expressways will be undertaken simultaneously.
The National Remote Sensing Agency (NRSA) has offered its aerial survey technology to evolve road alignment plans for the expressways project. With the help of aerial data acquired from modern remote sensing aircraft that scan every inch of land, the NRSA would suggest road design models for the proposed expressways.
The Ministry of Surface Transport (MoST) and the (NHAI) are hopeful of substantial private investment. The centre would soon formulate an integrated transport policy to involve private sector. Unfortunately, the response from private sector has not been very encouraging so far. The lack of response from the private sector is attributed to the non-profitability in the transport sector.
First Private Water Supply Project
Tirupur water supply scheme attains financial closure
The Tirupur Water Project has attained financial closure. This is the first water privatisation scheme to cross pre-construction hurdles and enter the construction stage. The interesting feature of this Built-Own-Operate-Transfer (BOOT) project is the absence of cash flow guarantees by the state government and its exclusive dependence on revenue flows of the municipality. The project special purpose vehicle New Tirupur Area Development Project Ltd. (NTADPL) has entered into bulk water purchase agreement with large industrial users. NTADPL is promoted by the Tirupur Exporters Association, the State Government, the Infrastructure Leasing and Financial Services Ltd. and the Centre. The Mahindra-Bechtel United Utilities combine bagged the contract for engineering procurement construction. The total cost of the integrated project is Rs. 14,000 crore of which Rs. 300 crore is equity and another Rs. 850 crore is in the form of debt.
Delhi Government Seeks $1 Billion World Bank Loan
Plans to redraft the electricity and water supply systems
The Delhi Government has approached the Finance Ministry to negotiate a World Bank loan for $1 billion to redraft electricity and water supply systems in the state and to fund slum development programs. Officials disclosed that the State Government has mooted an innovative model, whereby funds from the World Bank would accrue to an Indian financial Institution-most likely to be the Infrastructure Development Finance Corporation (IDFC). The IDFC in turn will not only provide funding to the Delhi Government, but also be a technology provider, by bringing in various firms with core competence. The Delhi Government has already decided to privatise the power distribution in the state presently handled by the Delhi Vidyut Board.
Officials are assured with this model, that they will be independent of the World Bank. Under the proposal, the Delhi Government will form an independent Statutory Delhi Electricity Regulatory Commission to undertake licensing of new capacity, prescribe performance standards and tariffs after due consultations.
Government to implement integrated waterways project in Chennai
Rs. 300 crore given by HUDCO
For development of waterways in Chennai, an integrated projet is under consideration for which a loan worth Rs. 300 crore has been given by HUDCO. Identified as 'a millenium project', the project visualises cleaning up of all major waterways in Chennai along with prevention of dumping of waste into waterways, desalting and removal of encroechments. Also included are provision of alternatwe residential areas for those displaced, putting up recreational facilities and shopping complexes along the banks and introduction of ferry services.
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