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Orissa in infrastructure push

Bhubaneswar, Sept. 9: The Orissa government is planning to invest Rs 125,000 crore in 36 infrastructure projects to be taken up under the private-public-partnership pr-ogramme.

Agreements will be signed with consultants for pre-feasibility studies.

Many companies, such as Arcelor Mittal and Posco, have lined up investments in the state, but infrastructure has proved to be a bottleneck to growth. This prompted the introduction of the public-private-partnership programme last month.

Under the programme, the state government will leverage its financial resources with that of the Centre, to prepare a shelf of projects. These will be taken forward through a transparent selection process. There will also be viability gap funding, if the projects are initially loss-making.

The policy will also create Orissa Infrastructure Development Fund with a corpus of Rs 1,000 crore. Projects that are part of the programme include roads, bridges, ports and harbours, airports, airstrips, inland container depots, industrial parks, special economic zones and townships.

“We have already entered into agreements with IL&FS and PricewaterhouseCoopers, who will be the consultants for these projects. A few more will be empanelled soon,” said Parag Gupta, special secretary of the state secretariat’s public-private-partnership cell. Gupta said power projects were not included in the plan.

Sources said IL&FS was picked as a consultant because of its joint venture with state-run Industrial Infrastructure Development Corporation for the Bhubaneswar Integrated Road Network project. PwC is also a consultant for several road projects. The state has also signed an agreement with the Infrastructure Development Finance Corporation (IDFC) in this regard. IDFC is funding some projects in association with Nabard.

“Two more consultants, including Ernst and Young and another Calcutta-based firm, will be enrolled soon,” the sources said.

The empanelled agencies will help identify projects that need to be taken up, prepare pre-feasibility and detailed project reports. They will then hand the reports over to respective departments.

Some of the projects being taken up are the Capital Region Ring Road, to span 98km, and the Bhubaneswar-Paradip Road, a 90km stretch. Each of the projects will cost around Rs 700 crore. They will be executed by the state public works department.

Other projects include sector-specific infotech SEZs, which will cost around Rs 352 crore and an IT & corporate tower in Bhubaneswar to be set up for Rs 146 crore.

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