The Uttar Pradesh cabinet has approved the state funding of chief minister Akhilesh Yadav’s dream project: the Lucknow-Agra Expressway as it has failed to attract investors. The funding would be done through the state budget under the Engineering Procurement Contract (EPC) model. The cabinet also cleared the proposals for acquiring land in Meerut, Kushinagar, Lalitpur and Mirzapur for state and Central projects.
In all, the cabinet approved of 18 proposals that were on the agenda for Friday including service matters, construction of a new jail in Etah, a common facility centre in Sitapur, IT city in Lucknow and constitution of a commission for management and regulation of water in the state.
Chief secretary Jawed Usmani, briefing the media about the cabinet decisions said that since no bidders turned up for the expressway under the PPP mode,the cabinet has decided to fund the project through the EPC mode that had been adopted earlier as well for various projects in UP.
Due to economic slowdown, the project failed to attract bidders and now the UP Industrial Development Authority (UPIDA) would develop it instead. The 301-km long expressway from Lucknow to Agra is likely to cost Rs 8,944 crore. He said that an important clause of the EPC model has been amended because of which the Defect Liability Period (DLP) has been extended to five years instead of the existing two years. The DLP cover the expenses to be borne by the developer, he said.
The Cabinet also awarded the 100 acre Information Technology (IT) City project in Lucknow to Vama Sundari Investments of HCL Group as HCL was the only group to bid for the project requiring investments.
In all, the cabinet approved of 18 proposals that were on the agenda for Friday including service matters, construction of a new jail in Etah, a common facility centre in Sitapur, IT city in Lucknow and constitution of a commission for management and regulation of water in the state.
Chief secretary Jawed Usmani, briefing the media about the cabinet decisions said that since no bidders turned up for the expressway under the PPP mode,the cabinet has decided to fund the project through the EPC mode that had been adopted earlier as well for various projects in UP.
Due to economic slowdown, the project failed to attract bidders and now the UP Industrial Development Authority (UPIDA) would develop it instead. The 301-km long expressway from Lucknow to Agra is likely to cost Rs 8,944 crore. He said that an important clause of the EPC model has been amended because of which the Defect Liability Period (DLP) has been extended to five years instead of the existing two years. The DLP cover the expenses to be borne by the developer, he said.
The Cabinet also awarded the 100 acre Information Technology (IT) City project in Lucknow to Vama Sundari Investments of HCL Group as HCL was the only group to bid for the project requiring investments.
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