UP eyeing Rs 1,25,000-cr investment

Uttar Pradesh is looking at private investment to the tune of about Rs 1,25,000 crore even as the Mayawati government completes three years in office on May 13.

Investment is touted to flow under the public-private partnership (PPP) mode, which has been adopted by the dispensation to usher in speedy development, since the state lacks financial resources.

The PPP projects have either been launched or awaiting the nod in all the major sectors like power, sugar, transport, education, tourism, infrastructure, urban development and health.

The PPP projects include Greater Noida-Ballia Ganga Expressway, Noida-Agra Yamuna Expressway, power plants in Allahabad, Fatehpur, Anpara and Lalitpur, proposed international airport at Kushinagar and setting up of super specialty hospitals in seven towns/cities.

Major companies, which have joined hands with the state government under these PPP projects, include Lanco, Jaypee, Bajaj Hindusthan and Torrent.

The flagship Ganga Expressway Project, whose capital outlay is estimated at Rs 30,000 crore, is awaiting environment clearance as per the court order. It was awarded to Jaypee.

Meanwhile, the completion of the Rs 9,935-crore Yamuna Expressway has been delayed to 2011 from its earlier target of meeting the deadline of Commonwealth Games in New Delhi. However, a section of the expressway will be opened before October 2010.

To promote ‘Brand UP’ and attract private investment, the state government had held an investors’ conclave in Mumbai in October 2009. Some leading lights in the Indian corporate galaxy, including Videocon, Mahindra, Modi, Essar, India Bulls, Tata and Jaypee had participated.

On the power front, the state government is aiming power generation capacity of 25,000-Mw by 2017 with the help of private investment.

At present, the total power generation capacity of all 26-odd hydro, thermal and co-generation (300 Mw) power units in UP totals to around 2,700 Mw, against the restricted demand of 10,000 Mw.

While the total import from the central sector is to the tune of 4,000 Mw, there is still a large chasm of over 3,000 Mw, leading to domestic and industrial power cuts.

The government is also planning to sell government sugar mills and tourist rest houses, besides steps are on to rope in private partners to run industrial training institutes (ITIs) and polytechnics. UP has opened up several lucrative routes to private operators.

The industry has evoked mixed response on the performance of the Mayawati government on the industrial front.

“While, the industry expected much more, we have to consider the performance in the light of recession. Even in the face of recession, the tax collection in UP has improved, which shows increase in production and demand,” PHD Chamber resident director Brig Amitabha told Business Standard.

However, Assocham secretary general S B Agarwal was critical of the state government for allegedly failing to deliver for the industry.

“The power situation has only worsened in the last threeyears, which is hampering new industry from setting shop in UP,” he said adding the state government’s agenda was more concentrated towards the development of expressways, while neglecting other segments.