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ties of practitioners while under‐taking PPP projects.
Even with all the concerted ef‐forts, the need of the hour is coor‐dinated and cohesive actions from all stakeholders, especially the Governments, public institutions, trade and industry bodies and major private enterprises. An appropriate strategy to encourage private investments, reduce costs of doing business, speeding up process of project clearance and strengthening inclusive infrastruc‐ture development needs to be implemented.
Dr. Raj Kumar Khatri, IAS Principal Secretary, Infrastructure Development Department, Government of Karnataka
Welcome to yet another quarterly issue of Karnataka InfraConnect, Newsletter of Infrastructure De‐velopment Department (IDD), Government of Karnataka. In this issue, IDD highlights sectoral news and key events in the quar‐ter, January to March 2013.
The Indian Economy is facing its toughest challenges in terms of high inflation, slowdown in growth, uncertain investment outlook, and adverse external economic environment. In spite of these challenges, there are incipi‐ent signs that the economy is on the cusp of improvement and good times.
On a similar note, the investment scenario in Karnataka has been quite challenging as the Govern‐ment continues to provide the right blend of opportunities for infrastructure development. In this direction, the development of two industrial corridors—Chennai‐Bangalore and Mumbai‐Bangalore have received special emphasis in the Union Budget 2013. Resump‐tion of work for two new railway
lines—Chickmagalur‐Saklespur and Bengaluru‐Satyamagalam, development of railway stations, power generation /energy saving projects, freight terminals on public private partnerships (PPP) have been proposed to be under‐taken by the Government.
IDD is also involving various stake‐holders such as Confederation of Indian Industries (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), private devel‐opers and financial institutions to understand the requirements and adopt a holistic approach in the development of infrastructure. For development of logistics hubs at Bangalore and Hassan, the Government has appointed trans‐action advisors to carry out feasi‐bility studies and prepare bid documents for the selection of a private developer. In addition, PPP capacity building programmes / workshops were held at Banga‐lore (January), Dharwad and Man‐galore (March) to sensitize practi‐tioners on some of the issues that are emerging in infrastructure projects and enhance the capabili‐
Aero India, the most premiere biennial air show in India was organised by the Ministry of
Defence (MoD), Government of India (GoI) at the Air Force Station Yelahanka, Bangalore from February 6th – 10th, 2013. Managed by Confedera‐tion of Indian Industry, it emerged out as a niche in the international arena as re‐
nowned aerospace exposition. It proved to be an ideal platform in bringing together eminent manu‐
facturers, vendors, and suppliers of the aviation industry under one roof.
MoD, GoI had requested IDD to coordinate as the nodal depart‐ment for event preparations. IDD actively supported and co‐ordinated with the Indian Air Force (IAF) and MoD in organizing the Aero India show.
Note from Principal Secretary, IDD
I n s i de th i s i s s ue : Aero India 1
Upgradation of Hubli Airport
2
Capacity building initiatives
2
Dabhol Ben‐galuru Gas Pipe‐line Network
3
New Initiatives 3
Other Sector Update—Agricultre and Rural develop‐ment
4
Aero India 2013
M a r c h 2 0 1 3
Infrastructure Development Department (IDD)
Government of Karnataka
www.idd.kar.nic.in
Volume 1 / Issue 4
P a g e 2
Training Programme on ‐ PPP’s in Infrastruc‐ture: Lessons & Experiences
The State Government has taken a number of steps to encourage private investment in infra‐structure through public‐ private partnerships (PPP). However, it is observed that while PPP based infrastructure projects in some sectors have displayed good progress, in other sectors have achieved only limited success. Issues relat‐ing to project implementation, monitoring and dispute resolution are among the key concerns of private developers.
With evolving expertise in development of newer methods of project implementation in infrastructure,, there is a need to look at policy development and innovative ways of execution of projects in future. It is in this context that an interactive three – day Training Programme on “PPP’s in Infrastructure – Lessons & Experi‐ences” was organized, to bring on a common platform ‐ Government officials, sector experts and practitioners; to discuss and share their views on contemporary topics on infrastruc‐ture.
IDD, Administrative Training Institute (ATI), State Institute of Urban Development (SIUD) and Infrastructure Development Corporation (Karnataka) Limited (iDeCK) jointly organised the three‐day programme from January 29 ‐ 31, 2013 at Hotel Capitol in Bangalore. Over sixty senior officials of the Government participated in the training programme.
On similar lines, training programmes were also held at Dharwad and Mangalore. However, these programmes were organized for a period of two days. These programmes were jointly
organised by iDeCK and SIUD. The programmes were at‐tended by the officials of vari‐ous Government departments and agencies.
In Dharwad, the training pro‐gramme was held on March 15 & 16, 2013 at the Zilla Panchyat office whereas, in Mangalore
the programme was held on March 22 & 23, 2013 at the Corporation Meeting Hall .
Over the years, SIUD ‐ the nodal agency for imparting training and building capaci‐ties on urban sector among officials of the Government and administration , has been c o n d u c t i n g t r a i n i n g programmes, seminars, work‐shops, round table discussions
etc all through the year. It has also been focusing on imparting capacities in the domain of concepts and practices in PPPs.
The primary objective of the training pro‐grammes was to enhance the capabilities of the agencies with respect to the concep‐tion and implementation of PPP projects and to promote private sector participa‐tion in development of infrastructure.
Upgradation of Hubli Airport
In order to improve the connectivity to Hubli and neighbouring regions, the Government had
proposed to upgrade the existing airport located at Hubli. The Rs.160 crore upgrada‐tion project includes extension of the runway to facilitate landing of large aircraft and cargo planes and expansion of terminal building, control tower and canopy. For this purpose, a Memorandum of Understanding (MoU) between the State Government and Airports Authority of India (AAI) was signed in January, 2013.
For upgradation of the airport, the Govern‐ment has handed over 600 acres of land to
AAI. Facilities such as voice communication
switching system (VCSS), doppler very high frequency omni‐directional range, discover video multimedia encoder and other digital airport service equipment are proposed to be installed.
With regard to the current progress, around 90 percent of the work on mapping the boundary of the airport has been com‐pleted and automating operations i.e. Pro‐ject Gangan is under progress and is ex‐pected to be commissioned shortly.
Capacity Building Programmes
March 2013 Karnataka InfraConnect
P a g e 3
Development of Logistics Park in Hassan and Harohalli
IDD proposes to develop two logistics parks at Harohalli (near Bangalore) and Hassan. The key objective of the project is to provide necessary logistics components and facilities for handling, storage and distribution of commodities for the convenience of industry and consumers.
IDD invited competitive tenders for the selec‐tion of a Transaction Advisor (TA) for the pro‐ject in September 2012. The role of TA would involve structuring the project, assisting IDD in carrying out the bid process for selection of a private developer to implement the project and selection of an independent engineer to moni‐tor project implementation.
Competitive tenders were received in Decem‐ber, 2012 and upon evaluating the tenders re‐ceived from the eligible bidders, Infrastructure Development Corporation (Karnataka) Limited (iDeCK) was selected as the Transaction Advisor for the project.
Currently, iDeCK is preparing the Techno‐Economic Feasibility Report for development of logistics park at both the locations.
Improvement of regional air– connectivity in the State
The Government of Karnataka has been at the forefront in the development of airport infra‐structure and promoting the aviation industry in the State. In addition to the two international airports at Bangalore and Mangalore, GoK has also enhanced capacities and infrastructure in airports at Mysore, Mangalore and Hubli. The State has also initiated development of five green‐field airports at Shimoga, Gulbarga, Bi‐japur, Bellary and Hassan on a Public Private Partnership (PPP) framework which are at vari‐ous stages of implementation. Efforts are also on to commence civil flight operations at the exist‐ing Air Force training base at Bidar.
To enable faster connectivity and reduce travel/ commute time, the State Government is keen to promote air travel as an alternate means of travel within the State. Smaller aircrafts could be deployed for conducting non‐scheduled opera‐tions in certain sectors/ routes in the State where traffic volumes are low or uncertain. Since the basic airport infrastructure for undertaking air‐line operations within the State is in place, the Government now intends to utilize this infra‐
structure to commence intra‐State airline operations.
That said, the economic situation and mar‐ket dynamics make airline operations within destinations in the State an unviable proposition. Various structures to select airline operators are being evaluated with the assistance of iDeCK.
Preparation of a PPP Handbook
In its efforts to promote private sector participation in developing infrastructure projects, IDD has embarked on the prepa‐ration of a ‘PPP Handbook’, to serve as a step‐by‐step guide to practitioners, in de‐veloping projects on a PPP framework.
The Handbook seeks to provide guidance on the various processes / activities that need to be undertaken by the public entity at different stages in the project develop‐ment cycle.
The Handbook is being developed with the assistance of iDeCK and is currently under finalization.
Dabhol Bengaluru Gas Pipeline Network The Ministry of Petroleum & Natural Gas (MoPNG) had issued Expressions of Inter‐est (EoI) for the develop‐ment of the Dabhol – Ban‐galore and Kochi – Banga‐lore Pipeline projects to distribute the available Regasified Liquified Natural Gas (R‐LNG) from LNG Terminals at Dabhol & Kochi to the indus‐tries and power plants located in Maharastra, Goa, Karnataka, Kerala and Tamil Nadu.
GAIL (India) Limited, India’s flagship Natural
Gas company submitted its pro‐posal to (MoPNG) and a Grant of Authorisation (GoA) was ob‐tained from MoPNG for the de‐velopment of the Pipeline pro‐jects. Pursuant to the same, an MoU was signed between the State Government and GAIL
(India) Limited In April, 2009,
With the inauguration of the Dabhol – Bengaluru Gas Pipeline network in January 2013, GAIL now supplies Natural Gas from the western coastline of India to Bangalore. Built at a project cost of Rs.4500 crores, the Pipeline project is expected to
deliver a capacity of 16 MMSCMD (million metric standard cubic meter per day) of Natural Gas. Before reaching Bangalore, the Pipeline projects covers a total distance of 1000 km covering 300 km of highly undu‐lating and the hilly Western Ghats, 263 km in Maharatra and 26 km in Goa . It also crosses 11 major rivers, 276 water bodies and 20 railway crossings. Nearly 73 km of the pipeline has been laid out in Bangalore which is expected to garner benefits to road transport, households, power genera‐tion etc.
New Initiatives
Other key initiatives
1. Revision of Infrastructure Policy, 2007
2. Review of PPP Projects across five sec‐tors namely—Water Supply, Solid Waste Management, Urban Transport, Tourism and Commercial properties.
Karnataka InfraConnect March 2013
Dr.Rajkumar Khatri, IAS Principal Secretary to Government Infrastructure Development Department Government of Karnataka Room No. 28, Vikasa Soudha Bangalore‐560001 Phone: 91‐80‐22282366, 080‐22035085 Fax: 91‐80‐22280605 Website: www.idd.kar.nic.in
Other Sector Update ‐ Agriculture & Rural Development The National Bank for Agriculture and Rural Development (NABARD) has estimated the total resource requirement for critical infra‐structure in Karnataka at Rs 8,098.1 crore dur‐ing the Twelfth Five Year Plan (2012‐2017).
NABARD has also prepared the list of potential sectors where investments are required. These sectors include ‐ dryland farming, dryland horticulture and drought proofing through watershed.
It was emphasised by NABARD that, besides creation of warehousing facilities, allied infra‐structure such as rural godowns, milk cooling chains and food parks are also critical for post harvest management of produce.
Further, rural roads and bridges are critical for ensuring rural connectivity. Primary health centres, anganwadis and primary & secondary schools are few
other areas that require investment under critical infrastructure.
As per NABARD estimates, the allocation of the Rs 8,098.1 crore re‐quired in the Twelfth Five Year Plan would
be as follows:
NABARD further indicated that, presently, under Rural Infrastructure Development Fund (RIDF), about 33% of the funds are
utilised to finance core sectors like agriculture and irriga‐tion. The way for‐ward is to progres‐sively shift RIDF fund‐ing to core sectors upto the level of 70%.
As per NABARD, critical infrastructure is defined as that infrastructure, which if cre‐ated, will support increased credit flow under agriculture and benefit a large number of people.
Critical infrastructure, therefore covers infrastructure having a large impact on livelihoods and income levels of rural population, critical constraints in improving productivity/ production levels of farmers and infrastructure that leads to environmentally sustainable development.
Sri R. Ramesh Director PPP Cell Infrastructure Development Department Room No. 08, Vikasa Soudha Bangalore‐560001 Phone: 91‐80‐22034070, 080‐22034069 Fax: 91‐80‐22281123
Sl.No Projects Amount (in Rs.Crores)
1 Last mile / incomplete projects 712.3
2 Projects having a large impact on production / productivity 4033.5
3 Value addition / post harvest management 726.3
4 Rural connectivity 1735.4
5 Social sector projects 890.5
Total 8098.1
March 2013 Karnataka InfraConnect