Date:23/12/2008 URL: http://www.thehindu.com/2008/12/23/stories/2008122360490800.htm

Karnataka - Bangalore

Reliance, SPML show interest in projects

Nagesh Prabhu

Government plans to develop 40,000 km of roads under PPP model

Reliance, SPML interested in 10 major road projects
Vision Plan seeks to develop highways, major district roads

BANGALORE: Two major players in the infrastructure sector — Reliance Infrastructure Ltd. and Bangalore-based Subhash Projects and Marketing Ltd. — have expressed interest in taking up 10 major road projects in Karnataka.

The State Government has formulated the Vision Plan 2015 to develop State highways and major district roads with the help of private players. Under the Vision Plan, the Government plans to develop 40,000 km of roads on the public-private partnership (PPP) model.

Reliance Infrastructure Ltd. of the Anil Dhirubhai Ambani Group (ADAG), one of the country’s largest private sector companies, led by its Chairman, Anil Ambani, has submitted proposals to develop four major roads: the Bangalore-Mysore-Mangalore road, the Bangalore-Raichur corridor via Bagalkot (Hungund-Lingsugur), the Hiriyur-Bellary-Raichur road and the Gulbarga-Bijapur-Belgaum road via Jewargi, Athani and Chikkodi, Minister for Public Works C.M. Udasi told The Hindu.

The Government has decided against giving the Bangalore-Mysore road to Reliance Infrastructure Ltd. since Nandi Infrastructure Corridor Enterprises is in the process of developing the Bangalore-Mysore Infrastructure Corridor (BMIC). The Government is in favour of giving the Mysore-Mangalore stretch to Reliance.

Details such as cost, duration of the projects and nature of the agreement to be signed with the Government by the developer would be worked out soon, Mr. Udasi said. Reliance Infrastructure Ltd. is the largest developer of road and highway projects for the National Highways Authority of India under the build, own, transfer (BOT) scheme.

The company is developing five major road projects in Tamil Nadu (over 400 km) with an investment of Rs. 3,150 crore.

SPML offer

Subhash Projects and Marketing Ltd. has offered to develop six roads on the Swiss Challenge method: Yelahanka to Kudumalakunte in Andhra Pradesh (137.16 km), Arsikere to Pandavapura (107.20 km), Hoskote to Chintamani (44.95 km), Mundargi to Koppal (31.83 km) Hoskote to Tekal (31.83 km) and Hoskote till the Tamil Nadu border (53 km).

The company is executing several urban infrastructure projects in some other States.

The Government has also decided to rope in private companies for developing three major roads under the BOT scheme: Dharwad-Alnavar-Ramanagara road (60.40 km at Rs. 193 crore), Chikkanayakanahalli-Hassan-Tiptur road (76.22 km at Rs. 203 crore) and Vagzari-Ribbonpalli road from the Maharashtra border to the Andhra Pradesh border (141 km at Rs. 197 crore). He said the PWD had proposed to set up a Karnataka Road Fund, and the proposal was before the Government. The fund would be utilised for roadworks.