ARSS Infrastructure Projects Ltd, a city-based infrastructure firm, on Wednesday, entered into a concession agreement with the Orissa State Road Transport Corporation (OSRTC) for developing a modern, state-of-the-art bus terminal and commercial complex over 14.43 acres at the Baramunda locality in the city.
The concession agreement has been signed for a period of 15 years. The up front license fees for the project being taken up on the Public Private Partnership (PPP) mode is Rs 56 crore, and ARSS would be paying five per cent of the up front license with 15 per cent hike on every third year.
Incidentally, OSRTC has inked a pact with ARSS Infrastructure at a time when the company is lagging behind the schedule in commissioning most of its ongoing infrastructure projects in the state. These included two important road projects- Cuttack-Paradip (89 km) and Bhadrak-Anandpur via Chandbali highways. The Cuttack-Paradip stretch, comprising the state highway No 12, taken up at a cost of Rs 314 crore was scheduled for commissioning by September 2009.
Besides, as per the agreement, ARSS will get six acres of government land within the bus terminus site on 90 years lease where the company intends to develop commercial facilities. But the area being in the vicinity of the city airport, a no-go area for high-rise apartments, the planners have raised concern over the issue.As per the concession agreement, OSRTC would hand over the land to ARSS within six months after which the construction work will begin. ARSS Infrastructure would develop the bus terminal within two years.
The cost of construction of the bus terminal is estimated at Rs 105 crore.