Punjab Sets Up Rs 50 Crore Intiative Fund For Core Sector

The Punjab Infrastructure Development Board (PIDB) has set up an Initiative Fund of Rs 50 crore to accelerate the process of infrastructure development and privatisation. PIDB is a nodal authority for integrated infrastructure planning and development. It has taken up a large number of infrastructure projects for privatisation.

The objectives of the Punjab Infrastructure Initiative Fund are to develop a `shelf' of invisible projects-through feasibility studies carried out by independent agencies and to create a superior model for privatisation process by channeling international experience.

PIIF is a part of Punjab Infrastructure Development Fund which generates Rs 100 crore per annum primarily from a one per cent cess on petrol and all agricultural products (except fruits, vegetables and pulses). The fund will be used for upgradation of existing infrastructure, Punjab Government's contribution to equity in priority infrastructure projects.

 

PIDB is headed by the state Chief Minister, with representation of ministers of finance, power, industry, housing & urban development and public works.

The various projects in the PIDB pipeline include roads-river bridges, road-over-bridges, four-laning of existing state highways, creation of new townships, leisure and entertainment complex, bus terminus upgradation and commercialisation, super specialty hospital etc. According to a report from PIDB, maximum toll rates have been specified for the roads and bridges sector and private operators have been empowered to collect and retain tolls. A policy on build-operate-transfer scheme has been framed to provide guidelines for attracting private investment.

The state government will carry out the preparatory work which includes the pre-feasibility study, land acquisition for right of way, clearances of right of way and the various environmental clearances. PIDB has constituted a high powered committee for speedy clearance of projects.

The report said that the ROB at Dera Bassi is the first step towards privatisation. The bid was finalised in January, 1999 and the construction is expected to be over by 2001. The concussion period for the project is 7 years 5 months and 25 days. The other major projects include 4-laning of the Chandigarh-Ludhiana-Moga highway, the Ropar-Balachaur-Nawanshahr-Phagwara highway.

PIIDB is also considering the involvement of private participants for the Ludhiana bypass and for the Mohali urban development corridor. It also plans a major upgradation of Khanna-Samrala-Machiwara road.

The state government has made amendments in the existing legislation's to provide for a more investor friendly environment. The amendments are aimed at providing transparent mechanisms and rules to encourage and facilitate private participation/award of concession. These also hedge against potential political risks and towards establishing a credible and transparent regulatory mechanism.

Considering the relative infrastructure development index, Punjab ranks ahead of states like Tamil Nadu, Gujarat and Maharashtra. With the all India Average at 100, Punjab ranks the first at 191, with Tamil Nadu at 144 and Maharashtra at 107. The states like Karnataka (97) and Andhra Pradesh (96) fare quite poorly in terms of infrastructural capacity and fall below the national average.