Apseb, Tata Teleservices Pact Likely

The Andhra Pradesh Electricity Board (APSEB) has proposed a joint venture with Tata Teleservices to set up a high-speed gigabit backbone, Chief Minister Chandrababu Naidu announced here yesterday.

Speaking to members of the Confederation of Indian Industry (CII) at the Infranet meet, Naidu said the backbone was intended to build the state information infrastructure.

The state had been scouting international partners for the venture, he added.

Naidu also said that the state had prepared a bill to set up an independent tariff regulatory authority for the power sector.

Presidential assent for the bill was expected shortly, he said and aded that the state would then move forward to set up the authority for sweeping reforms in the power sector. He said that the state had drawn up a huge programme for privatising three ports _ Krishnapatanam, Kakinada, and Vodarevu. For the Gangavaram port, bids would be finalised soon, he added. Each of these ports were being created with capacities of about 50 million tonnes.

To support these ports , the state was also setting up a logistices chain, which included, road-rail linkages, warehousing facilities and provision of speedy customs clearances. In addition it was also planning to set up toll expressways with between Hyderabad -Vijaywada, Chennai, Viskhapatnam, Vijaywada - Machilipatnam.

These expressways would be done through the private finance initiative using build operate and transfer or build own operate and transfer methods.

In addition, AP, he said , was also planning to improve the existing state highway network , for which resources were in the process of being raised . Of the total requirement of Rs 3702 crore, the World Bank was expected to provide assistance to the extent of Rs 1850 crore. Budgetary support for the programme would be Rs 775 crore.

The state was also planning to set up two international airports at Hyderabad and Visakhapatanam. Hyderabad, he said, would be developed as a transit airport since it was centrally located. In addition the state also has identified a series of minor airports for private sector participation, he added.

Naidu said that the state was also creating an AP infrastructure initiative fund for meeting the preliminary project expenses and also managing the privatisation chain of the infrastructure. In addition to this fund, ICICI was also supporting the fund raising programme through floatation of bonds with an AP option. This was expected to raise about Rs 400 crore.