Bharat Forge In Rs 700cr Highway Project
Bharat Forge Ltd, the flagship of the Kalyani group, has tied up with two US companies "" VHB and SAB Engineering "" for a $200-million (Rs 700 crore) highway project between Bangalore and Mysore.
This is one of the largest roadway project undertaken by a private sector company in the country.
The US companies will provide design and engineering assistance to the infrastructure venture, said Baba N Kalyani, Bharat Forge vice-chairman and managing director.
The company may also forge alliances with foreign construction companies to execute the mega project.
Dubbed as the infrastructure corridor by the promoters, the project involves setting up of five townships alongside the 111-km stretch between the two cities, making it the most comprehensive infrastructure project undertaken in the country.
We have not tied-up with any foreign construction companies as yet, Kalyani said. But the US companies we have joined hands with, VHB and SAB Engineering, will help us out with the design and engineering aspects of the project.
Kalyani said the company is still in the process of tying up funds for the project. We have approached several Indian and foreign financial institutions and agencies for funds. Discusions are in progress.
The project is expected to begin in the second half of next year.
Last week, Bharat Forge had made a presentation on the project to the Industrial Credit and Investment Corporation of India (ICICI). ICICI chairman N Vaghul said he was impressed by the project.
We will decide on our exposure after having appraised the project, Vaghul said.
Bharat Forge's project is huge, considering that the government has provided only about Rs 200 crore for highways in its annual budget. The venture is also consistent with the centre's emphasis on key infrastructure areas.
Prime minister Deve Gowda said early this week if we ourselves try to invest in roadways, we would not be able to improve the communication system significantly. Therefore, I have told the surface transport ministry to get private investment in the area.
Gowda said his government would like to improve national highways connecting all the ports in the country to the standard of super highways.
The government is planning to amend the existing legisleation on acquistion of land to ease the burden on the investor, he had stated.