Karnataka looks at PPP route to infrastructure development

The Karnataka government is keen to partner private sector for infrastructure development including rail, roads, energy, airports, rapid mass transit and ports under public-private partnership model.

“The state government will develop minor airports and also a Rs 800 crore mega food park with backward and forward linkages in the state in PPP mode,” V Madhu, principal secretary, Infrastructure development department of Government of Karnataka, said at “Suminfra’ summit organised by Confederation of Indian Industry (CII) here. He also said that state would focus on financial viability of a project while ensuring environmental sustainability and social inclusiveness.

The state government, which has undertaken an ambitious plan for infrastructure development, will focus on logistics, energy, industrial infrastructure and tourism under the PPP mode. “Karnataka is keen to increase the port handling capacity to 114 million tonne by 2026 from 34 million tonnes with active private participation,” Madhu added.

Referring to port development, J L Jere, Executive Director, KSIIDC said, “ Tadri port will be a multi-cargo, all-weather port that will go a long way in promoting the economy of north coastal belt.” In the road sector , the state also has some fine blue print to develop road network in the state.

“KRDCL is taking up the construction of 275 km road on Build Operate Transfer mode at the cost of Rs 722 crores. It will also take up another 1,300 km of mega road development project covering many parts of the State,” Anil Kumar, managing director of Karnataka Road Development Corporation Ltd said.

He also said that with funding from World Bank, the state would construct four road projects — for which the tenders would be issued in October, 2010.

The government,which is also creating transport hubs covering various road stretches of about 3411 kms, is likely to receive funding from the Asian Development Bank for road sector in near future, he added.

In the food sector, the state is setting up food parks in the state with assistance in viability gap funding.

“The state government has embarked on developing food parks in the state using PPP route in Malur in Kolar District, Hiriyur in Chitradurga district, Navangar in Bagalkot district and Jewargi in Gulbarga district,” Vanditha Sharma, managing director of Karnataka State Industrial Investment and Development Corporation Ltd (KSIIDC) said.

Apart from these four areas, the government has also identified seven more locations for setting up food parks, he added. In the transport sector, the state is promoting Subhash Nagar transport hub at Rs 1,400 crore.

“This inter-modal transit centre would link the bus terminals with the proposed Bangalore Metro and will come up in 31 acres. The government is also promoting transport hubs in Mangalore and Hassan at the cost of Rs 20 crore and Rs 32 crore respectively, besides promoting transport hubs at Puttur and Chitradurga for Rs 7 and Rs 36 crores,” Gourav Gupta, managing director of Karnataka State Road Transport Corporation said.

Similarly, Sayed Zameer Pasha, managing director of Bangalore Metro Transport Corporation said that government was setting up transport hubs at Hebbal on PPP basis at Rs 300 crore, while promoting transport hubs at Jayanagar and Katriguppe at Rs 306 crores and Rs 144 crore.