24.11.08

Three Gujarat highway projects get Centre’s nod

In a major boost to the infrastructure development in Gujarat, the Centre has granted in-principle approval for availing the Viability Gap Funding (VGF) scheme for three highway projects.The Ahmedabad-Viramgam-Maiya Road, Halol-Godhra-Shamlaji Road and Rajkot-Jamnagar-Vadinar Road will now have four lanes.
The Gujarat Infrastructure Development Board (GIDB), which is the nodal agency for the implementation of all projects under the VGF scheme, said the project cost of these highways would be Rs 1,002 crore, Rs 808 crore and Rs 774 crore respectively.It may be mentioned here that the Government of India, in order to ensure sustained economic growth across all sectors, introduced the VGF scheme in the 10th Five Year Plan.The projects, which require huge investments, are not financially viable on standalone basis and have long gestation period with limited financial returns, are undertaken in this scheme on a Public Private Partnership model.
The Central Government bears 20 per cent of the total project cost, while the state may also provide additional grants not exceeding further 20 per cent of the project cost.
The sectors eligible for VGF are roads, ports and their harbours, power, urban transport, water supply, solid waste management, tourism and convention centres and projects in the vicinity of Special Economic Zones. The private player implementing the project is to be selected through competitive bidding under Section 9 of GID Act, 1999. As per the Government Resolution, no assistance under this policy can be sanctioned to the existing ongoing BOT/BOOT projects.
GIDB officials said that proposals for two more infrastructure projects, Nakhatrana-Panandhro Road and Bhuj-Bhachau Road, have been submitted before the Centre for approval. The proposals for Bhavnagar-Vallabhipur-Dhandhuka Road and Bagodra-Tarapur-Wataman-Vasad Road will be submitted soon.

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