The Andhra Pradesh Capital Region Development Authority (CRDA) has planned to create at least a dozen ring-fenced entities (RFEs) for the execution of "remunerative projects" like water and power supply, transport and a host of others in the upcoming capital city- Amaravati.
An expert report on "Governance Matters for Amaravati", prepared by the CRDA, says "ultimately all the local services will be delivered by the metropolitan government or regulated RFEs, which could be companies, societies or trusts."
"In the immediate future, certain entities will be created to form the foundation for local service delivery. A majority of local services like transportation, water and sewer, industrial infrastructure, power, etc, will be delivered through these RFEs," the report says.
"Multiple 'need-based' RFEs, which will get preference over existing entities, like for example NHAI, will be created for the execution of remunerative projects in Amaravati region. They will attract top talent into the separate entity apart from increasing speed and efficiency of execution (of projects)," a senior CRDA official told PTI.
Amaravati Development Fund, one of the RFEs proposed to be created as a trust under the Indian Trust Act, will be responsible for raising required finances for the (capital) city development.
Amaravati Building Construction Company Limited, likewise, will be entrusted with the task of construction and maintenance of government campus, including Secretariat, Legislature, High Court.
It will also be tasked with the management of land of the government campus.
Some of the other RFEs proposed are: Amaravati Utilities Company Limited (to build and maintain water supply, waste water, storm water, power and gas systems); Amaravati Blue-Green Infrastructure Company Limited (to build and maintain flood mitigation infrastructure and also city canals); Amaravati Growth Corridor Company Limited (to build and maintain ring roads and growth corridors in the capital region); Amaravati Power Company Limited (to build and maintain power distribution system, including alternative sources).
Another major RFE will be the Amaravati Industrial Infrastructure and Investment Promotion Company Limited, which has to develop and maintain industrial areas, including plug and play facilities, and promote industrial and other investments and create jobs, the expert report adds.
The overall Amaravati development is projected to cost Rs 42,000 crore in the next 3-4 years.
"There are multiple agencies including CRDA, Amaravati Development Corporation and state agencies like APTransco and AP Fibrenet that will be simultaneously developing various aspects of the capital city. The proposed ring-fenced entities will enhance capacities of the exiting state departments," the CRDA official said.
"Also, it is imperative that the development taken up by various organisations and related entities is aligned with the strategic focus and integrated seamlessly. Amaravati is envisioned to set a benchmark for all cities in the world and a vision of this scale requires interventions across multiple dimensions," the official said, explaining the need for creation of RFEs.
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