Q&A: V N Garg, Commissioner, UP Infrastructure and Industrial Development

The agrarian economy of Uttar Pradesh, which contributes India’s second largest Gross State Domestic Product (GSDP) after Maharashtra, is making efforts for ushering in faster industrial and economic development. As a policy, the state government has been emphasising on public private partnership (PPP) to overcome financial constraints and employ expertise in completion of projects. V N Garg, who has recently taken over as the UP infrastructure and industrial development commissioner (IIDC), tells Virendra Singh Rawat that projects worth almost Rs 1,70,000 crore under the PPP mode are underway in various sectors. Edited excerpts:

How has the PPP model delivered for UP in the last 3-4 years?
At present, projects estimated at Rs1,70,000 crore have been undertaken under the PPP mode in UP, which are in various stages of implementation. In 2007, the state government had issued guidelines for selection of consultant and developer for PPP projects to make the bidding process transparent and competitive. Clarifications from time to time are issued to ensure simplification, rationalisation and transparency in bidding.

 

The Yamuna Expressway in expressways sector, Agra Ring Road in urban rejuvenation sector, Bara and Karchhna thermal power projects at Allahabad in power sector, solid waste management projects in 25 cities in urban development sector are in advanced stages. For electricity distribution, an input-based franchisee system has been implemented in Agra. Besides, the selection of developers in other projects relating to road, transport and medical education sectors has been initiated.

Which are the thrust areas for the state government?
UP has identified expressways, industrial corridors, power, housing and health as thrust areas for infrastructure development. The government has created some specialised agencies for identification and implementation of PPP projects.

For instance, Yamuna Expressway Industrial Development Authority (YEIDA) has been constituted not only for construction of the 165-km expressway between Greater Noida and Agra, but to ensure planned development of areas along the route. It will act as a hub for development of western UP. Uttar Pradesh Expressways Industrial Development Authority has been set up for development of expressways and nearby areas. The Ganga Expressway and Upper Expressway are in the process of getting environmental clearance.

The New Township Development Authority has been set up under section 3 of the UP Industrial Area Development Act of 1976 to look after township projects.

A new power policy was declared in 2009 to attract investments in energy sector in generation, transmission and distribution. Two major transmission projects are at the stage of selection of bidders under PPP.

How is the private sector responding towards the various projects/sops announced by UP?
The response of the private sector has been encouraging. For example, 11 bidders had participated for the development of bus stations of the UP State Road Transport Corporation and six bidders had evinced interest in developing an eight-lane access-controlled expressway on the right bank of the Upper Ganga Canal.

In recent times, Bihar has been praised for growing faster than other northern states. How does UP compare to Bihar?
In power, expressways and infrastructure, UP is at the forefront among all north Indian states. Besides, no impartial comparison among states has not been done so far.

Last year, UP had announced a rehabilitation policy for land acquisition. How has it been working, because recently there have been issues regarding projects launched prior to this policy?
UP had introduced the Rehabilitation and Resettlement (R&R) Policy in September 2010, which provides for annuity payment over and above the requirements of the R&R policy of the Centre. For effective and smooth disbursement of annuity under this scheme, it has decided to engage the services of a professional service provider, such as insurance company, bank or a consortium. The process of selection of service provider is in final stages and six bidders have been shortlisted for submission of financial bids.

Industry often recommends that the state government should run a sustained campaign to promote ‘Brand UP’ before investors?
Brand UP is bigger and wider than the Brand of the UP government. We are in the process of promoting Brand UP. Some groundwork has been done. We have created a blog of Udyog Bandhu (UP’s industry interface) for this purpose.

Any other aspect, which the government believes would promote its development agenda.
To transform UP into the most sought after industrial hub across the globe, the government has taken many proactive measures to facilitate entrepreneurs. One such measure is a user friendly web enabled system ‘Nivesh Mitra’ to facilitate entrepreneurs in obtaining online clearances, approvals and no-objection certificates (NoCs) from various departments. This facility has been launched in selected 18 districts and other districts would be covered in phased manner. This web-interface will allow faster and time-bound issuance of approvals to the applicants desirous of setting up an enterprise in UP.