Adb Okays $250m Infrastructure Sector Loan For Giic

The Asian Development Bank has okayed a $250-million infrastructure facility for Gujarat Industrial Investment Corporation (GIIC) to catalyse the $6 billion core sector investment planned by the state government.

The Gujarat government recently had got an public sector restructuring loan from ADB worth $250 million. The ABD loan to GIIC will have a two-year draw down period with moratorium of five years and a payback of 15 years. GIIC will also be raising rupee resources of around Rs 300 crore in the current year to meet the demand for infrastructure.

The Gujarat government has lined up projects worth $6 billion, out of which $4 billion is for power projects, $1 billion for road projects and $1 billion for port projects. Gujarat has 10 ports in lined up four of which will be built by the public sector and the balance by the private sector.

 

In the road sector, two projects -- the Ahmedabad - Mesana road and the Baroda -- Halol road -- are at an advanced stage. The government has invited bids for the road to be operated on a BOT basis. The Ahmedabad -- Mesana project cost Rs 600 crore and the other Rs 400 crore and the pay back period is 10 years.

In both these projects, the existing two lane highways will be expanded to four lane ones and made a toll road. Since there is no other route for the traffic to take the tolls collections are expected to be very high.

The road from Baroda to Vapi at the border of Maharastra is also being increased to a four lane toll way. This road will pass through Baruch and Surat.

Three state government owned companies have firmed up plans of setting up power plant at Gujarat which is expected to have a project cost of Rs 2,256 crore.

Gujarat Narmada Fertilizer Company plans to set up a gas based power plant of 275 mega watts, while Gujarat Mineral Development Corporation and Gujarat Industrial Power Corporation has decided to set up a lignite based power plant of 250 mega watts each.

Sources estimate that the cost of power plant of GNFC will be of Rs 970 crore, GMDC will be of Rs 1186 crore and GIPCO will of Rs 1100 crore. GNFC will be set up its plant at Bharuch, GMDC plans to set up lignite based plant at Katch and Gipco will set up its plant near Surat.

Besides this, Gujarat Torrent Company has already set up a power plant of 650 mega watts which is expected to be on stream by June next year. The project, promoted by UK based Powergen, Seimens and Torrent Group is estimated to cost Rs 2,300 crore. According to S K Shelat, chairman, Gujarat Industrial Investment Corporation of India Gujarat, will require resources worth $6 billion for infrastructure projects and of this $4 billion is required for funding the power projects itself. He said the remaining $1 billion will be needed for roads and another $1 billion for ports.