Slide 1: Infrastructure
in
Karnataka
Infrastructure Development Department
Govt. of Karnataka
___________________________________________________ 7/25/2010 1 Infrastructure Policy 2007
Slide 3: General
Area: 1,92,000 Sq Km
Population: 52.85 Million
Literacy: 66.60%
Climate: Semi-tropical
Economy
Among the Top 5 Industrial States
Highly Skilled technical Manpower
One of the fastest Growing Markets
Steady GDP growth rate Karnataka at a Glance 7/25/2010 3 Infrastructure Policy 2007
Slide 4: Karnataka at a Glance
Slide 5: Presently 4.5% of GSDP
Target 8-9 % of GSDP
India Competitive Index- 25
Huge deficit in Tax- GDP ratio 22 %(35 %)
Investment requirements
(@ 2006 prices):
Rs 92462 cr( 11th plan)
Rs 186275 Cr(12th)
Rs 315657 Cr(13th)
Required Annual Investment of upto Rs 25000 Crore Karnataka- Infrastructure investment 7/25/2010 5 Infrastructure Policy 2007
a few Infrastructure Indices : a few Infrastructure Indices 7/25/2010 6 Infrastructure Policy 2007
Slide 7: Policy Drivers
New Infrastructure Policy of 2007
New Industrial Policy of 2009
Institutions to Support
PPP- as a vehicle
Regular Procurement
Swiss Challenge
PPP Cell in Infrastructure Dept- Infrastructure
Karnataka Udyoga Mitra- Industry Karnataka- Growth Drivers 7/25/2010 7 Infrastructure Policy 2007
Slide 8: Port / Railways/ Industrial Zones ~150 km ~150 km
Slide 9: Port / Railways/ Industrial Zones ~150 km ~150 km Nanded GADAG SSPN BIDADI ANEKAL WF KUSHAL NAGARA
Cost of New works including proposals of ‘09-‘10 : Cost of New works including proposals of ‘09-‘10 No of works Total Kms Total Cost in cr.
Surveys Completed 6 978.80 6547.00
Surveys under progress 15 1643.44 11505.90
Surveys scheduled in 8 785.00 3925.00
2009-10
Total 28 3407.24 21977.90
GoK share Rs. 15000 cr (approx) spread over ten years or upto year 2020 presuming two thirds contribution in all projects
Slide 11: BIJAPUR GULBARGA HASSAN BANGALORE Existing BELGAUM HUBLI BELLARY MANGALORE MYSORE Existing Proposed New International Airport Airports Existing old HALnternational Airport
Cargo Traffic Indian Ports 1950-2008 : Cargo Traffic Indian Ports 1950-2008 Source: India Infrastructure Research
Cargo in Major Ports in 2007-08 : Cargo in Major Ports in 2007-08 Source: India Infrastructure Research
Cargo in non-Major Ports in 2007-08 : Cargo in non-Major Ports in 2007-08 Source: India Infrastructure Research
Slide 15: Airports in India Source: India Infrastructure Research
Slide 16: Freight Traffic at Airports Source: India Infrastructure Research
Stimulating Public Private Partnerships : Stimulating Public Private Partnerships PPP Projects in Airport Sector
In Airport sector six projects are undertaken on PPP mode with a project cost of Rs 20,041 crs.
Details of Airport Projects on PPP mode
Slide 18: Polytechnics Industrial Training Institutes Engineering Colleges 186 600 135 Enrolment 44,375 34,000 1,20,000 Enrolment Enrolment Govt. Tool Room & Trg. Centres and
Nettur Technical Trg. Centres 15 575 Enrolment Skills & Technology Brought Together
Slide 19: Indian Institute of Management National Law School of India University Universities 11
Allopathic Colleges 26
Dental 41
Ayurvedic 55
Homeopathy 10
Unani 4
Naturopathy & Yoga 3
General Colleges 712 Indian Institute of Science Indian Institute of Information Tech. IISc - Bangalore Institute of Bio Informatics & Applied Biotechnology Skills & Technology Brought Together
Important Current PPP projects : Important Current PPP projects Airport Projects-
Hassan, Bellary, Bijapur, Shimoga, Gulbarga; 12 Air strips(IDD)
High Speed Rail adLink to Airport at Bangalore(BARL)(6000cr)
10000km of Road Projects(KRDCL)(45000cr)
Devanahally Business Park(KSIIDC)(9500cr)
Sea Port at Tri, Haldipur(IDD)
Devanahally Convention Centre(tourism)
Logistics park (KSIIDC)
Two Mono Rail Project in Bangalore( BARL)
Food Parks (Food Karnataka Limited/ KSIIDC)
Tourism Projects(Tourism dept/ KIPDC/KSIIDC)
Industrial Infrastructure –VADA at Bellary 20
Distribution- Sector Wise : Distribution- Sector Wise 21 7/25/2010 21 Infrastructure Policy 2007
Infrastructure- Requirements : Enabling Policy and Regulatory Framework
Long-term equity and debt
Capacity to manage the PPP Process
Shelf of credible, bankable Projects
Private Sector capacity to invest in projects
Acceptance among the stakeholders Infrastructure- Requirements 7/25/2010 22 Infrastructure Policy 2007
Sector Focus : Sector Focus Agri-Infrastructure
Education
Energy
Healthcare
Industrial Infrastructure
Irrigation
Public Markets
Tourism
Transportation & Logistics
Urban and Municipal Infrastructure 7/25/2010 23 Infrastructure Policy 2007
Initiatives : Initiatives Standardised Contractual Documents
Bidding Documents
RFQ
RFP
Model Concession Agreements
Ports
Airports
Roads
Water Supply and Sanitation – PBMC & PBDPS contract developed (under ADB Assistance)
Approval Mechanism
SWA established
SLHCC 7/25/2010 24 Infrastructure Policy 2007
SWISS CHALLENGE : SWISS CHALLENGE Clause 29 of the Infra ‘07 policy
Innovative/ suo moto Proposals
Procedure
Proponent Submits proposal for Prelim examination
Provide ‘approval to proceed’ with studies
Submits a DPR with output based specification
Project Bid out
Original proponent has first right of refusal 7/25/2010 Infrastructure Policy 2007 25
Slide 26: 26 Procedure- Flow Chart…1 1. Project Proponent to submit an application for Swiss Challenge with filled in Checklist and Pre-feasibility Report 2. Admin Dept to Scrutinize
If meets ‘Public Need’
If any ongoing process
“innovative” or “suo- moto” 3. Dept to Scrutinize
if not known public needs
VGF sought is more than 20% of project cost excluding land
products or services generally available
Contravenes Law Provisions 4. Application to SWA through IDD for permission to Proceed 5. Admin Dept to obtain KTPP exemption 6. Admin Dept to issue letter to conduct studies in 4 months
If not done, dept can go with the idea ahead without any claims 0M End of 1st Month 2M 2M A
Slide 27: 27 Procedure- Flow Chart…2 7. Project Proponent to submit
DPR (all Govt Support in Money terms)
Ability to meet technical and financial criteria
cost of DPR
Bid value in sealed cover 8. Clarification from the Proponent 6M 9. Admin Dept to Carry out with PPP cell
Examine Docs
Set output based Specs
Additional Studies for benchmarking, if need be
Negotiate DPR cost to lower of 3 values
Prepare Transaction Docs
Determine development costs
FD Approval 10. Approval From SWA / SHLC for Tendering 11. NIT(Tender) and Receive Bids against procurement docs of (a) Single stage RFP/RFQ (b) MCA (c) Proj Info. Memo 8A. Admin Dept to
concurrently prepare RFQ/RFP (Combined), CA, Proj Info. Memo. A B 7M 9M 12 Mon
Slide 28: Procedure- Flow Chart…3 12. Original Proposal and Counter proposal to be evaluated and ranked 16. GoK / GoK agency to reimburse the proponent if the project is not taken up due to reasons not related to project proponent 14. Project Proponent refuses to match
Superior bidder declared as Concessionaire 13. Original Proponent to match the superior proposal if any and be declared as concessionaire 15. GoK / GoK agency to reimburse the proponent B Letter of Intent, Concession Agreement 13M 14M 16M
Central Assistance- VGF : Central Assistance- VGF PPP project should be from-
Roads, Sea ports, airports, inland waterways, Power, Urban transport, water supply & sewerage, solid waste and other physical infrastructure
Infrastructure in SEZ
Government Support
VGF not to exceed 20% of the total project cost- Land cost
Government or statutory entity can top up with another 20%
Approval process laid down
Viability Gap Funding (VGF)
For 3 projects, VGF funding of Rs 120 Crore
VGF of Rs 1040 Crore for High speed Rail Link 7/25/2010 29 Infrastructure Policy 2007
Incentives & Concessions : Incentives & Concessions A. Facilitation:
Land to be acquired if required
Clearances
Provision of water & power
B Asset based Support
Provision of Govt land at Concessional rate if available
Allowing Commercial development
Develop critical linkage Infra 7/25/2010 Infrastructure Policy 2007 30
Incentives & Concessions : Incentives & Concessions C. Tax Concessions:
Entry& Spl Entry Tax on Machinery, Equipments & Construction materials- Limited to 25 Lakhs & 3 years
Stamp duty on land transfer in Zone I(100%0, II(50%)
Conversion fine- same pattern as above
D. Take or pay Guarantee
E. VGF 7/25/2010 Infrastructure Policy 2007 31
Deliverables by Government : Deliverables by Government Clearances
Land Acquisition
Compensation payment
Market value of land
Replacement value of building
Resettlement & Rehabilitation
Dislocation allowance
Allocation of proportional assets
Share in the new project ? 7/25/2010 32 Infrastructure Policy 2007
Slide 33: 33 PPP Cell
Sector gap Study
Project Identification
Project Development
Transaction Management
Project Implementation
Monitoring
Capacity Building-
Projectisation
iDeck, KIPDC,KESOL, Transaction Advisers Support Systems to Line Depts 7/25/2010 Infrastructure Policy 2007
HIGH SPEED RAIL LINK (HSRL) TO BANGALORE INTERNATIONAL AIRPORT : HIGH SPEED RAIL LINK (HSRL) TO BANGALORE INTERNATIONAL AIRPORT 7/25/2010 34 Infrastructure Policy 2007
Slide 35: HSRL Alignment 7/25/2010 35 Infrastructure Policy 2007
Slide 36: Monorail Corridors (CTTP) Corridor i 7/25/2010 36 Infrastructure Policy 2007
CTTP - Mono Rail : CTTP - Mono Rail 7/25/2010 Slide 37
10000 KM Core Roads : 10000 KM Core Roads A corpus fund of Rs.500 Cr. provided to KRDCL
51 Packages tendered
KRDCL – Nodal agency.
KPWD, KRDCL, IDD will provide all necessary support for implementation of project.
Status
Bid Submission for 7 packages by 30 Sep ‘09 38 7/25/2010 38 Infrastructure Policy 2007
Devanahalli Business Park (DBP): 413.65 Acres : Slide 39 Devanahalli Business Park (DBP): 413.65 Acres Market Study & Business plan by Jones Lang LaSalle Meghraj (JLLM), Utility Master Plan by Mahindra Consulting Engineers (MACE)
Suggested Land Use Plan approved by GoK on 14.05.2008
Retained for Govt. Agencies: 83.24 Acres
Power Sub-Station & Social Forest: 21.34 Acres
For Development on PPP basis: 309.07 Acres(Commercial Devpt: 217 Acres, Roads & Utilities: 92.07 Acres)
Total 413.65 Acres
KSIIDC shall lease 309 acres to private sector developer for 30 yrs with automatic renewal for another 30 yrs.
Developer can sub-lease certain portion of 309 acres to other developers and shall develop roads & utilities for DBP as a whole 7/25/2010 39 Infrastructure Policy 2007
Selected Sectors- Aero : Selected Sectors- Aero PPP Projects - Airports
1 Major Airport operational (BIAL),
4 Minor airports under PPP mode
3 Awarded (Shimoga, Gulbarga, Hassan )
Bijapur: Concession to be signed
Bellary: Bidding commenced
Total Project Cost of 3300 Cr
Non PPP
Up-gradation of Airport- Hubli, Mangalore, Belgaum and Mysore.
Bidar Airforce airport for civilian use
Mysore to be commissioned in Sept 09
12 Airstrips proposed in the state 40 7/25/2010 Infrastructure Policy 2007
Food Parks : Food Parks Food Parks under implementation
Malur, Hiriyur, Bagalkot, Jewargi and Chickmagalur
New Food Parks
Shimoga,
Bangalore Rural,
Tumkur,
Davanagere,
Belgaum,
Bijapur Districts. 7/25/2010 41 Infrastructure Policy 2007
PPP Projects in Tourism : 42 PPP Projects in Tourism PPP Projects - Tourism
No of Projects – 16 Nos
Value Rs 1621 Crs
Theme park,
Cultural centre,
Entertainment
Golf Course
Aquamarine Park
Tourist Train Facilities
PPP Projects - Heritage Projects
No of Projects – 39 Nos Identified
Identification stage 7/25/2010 Infrastructure Policy 2007
Location details : 18 – hole Golf Course at Mangalore : Location details : 18 – hole Golf Course at Mangalore Proposed Golf Course (135 Acres) Gurupur River Arabian Sea N Mangalore City Govt. Land
(20 Acres) 7/25/2010 43 Infrastructure Policy 2007
Tourism Circuit Development - Project Packages : Tourism Circuit Development - Project Packages 7/25/2010 Slide 44
Slide 45: Tourism Projects in Karnataka
on PPP Format 7/25/2010 45 Infrastructure Policy 2007
Slide 46: CTTP for Bangalore Airport Link 7/25/2010 46 Infrastructure Policy 2007
THANK YOU : THANK YOU V Madhu
Principal Secretary, IDD
Govt of Karnataka
Room No 8, Vikasa Soudha,
Dr Ambedkar Veedhi,
Bangalore- 560001, Karnataka
Phone 080-22035085
Email: prs-infra@Karnataka.gov.in
v.madhu1952@yahoo.com Rabi Sahoo
PPP (E), ADB
PPP Cell, IDD
Govt of Karnataka
Room No 28, Vikasa Soudha,
Dr Ambedkar Veedhi,
Bangalore- 560001, Karnataka
Phone 080-22034070
Email: director.idd@gmail.com
rsahoo@adb.org