Infrastructure

in Karnataka
Infrastructure Development Department Govt. of Karnataka
___________________________________________________

3/13/2014

Infrastructure Policy 2007

Karnataka at a Glance
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
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Karnataka at a Glance
Gross State Domestic Product (GSDP) Growth Rate (2007 08) GSDP Contribution Agricultural Sector Manufacturing, Construction & Electricity Sector Tertiary Sector Index of Industrial Production for Karnataka Mining Manufacturing

7%

19.13 % 25.16 % 55.72%

6.39 %

7.31 % 3.89 %

GDP
Per Capita GSDP

Rs. 2,15,282 cr
Rs. 40,576

Karnataka- Infrastructure investment

Presently Target India Competitive Index Huge deficit in Tax- GDP ratio Investment requirements (@ 2006 prices): 4.5% of GSDP 8-9 % of GSDP 25 22 %(35 %)

Rs 92462 cr( 11th plan)

Rs 186275 Cr(12th) Rs 315657 Cr(13th)

Required Annual Investment of

upto Rs 25000 Crore

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Infrastructure Policy 2007

a few
Sl No Sector

Infrastructure Indices
Index Target Index Invest ( Rs Cr)

Railways
( railkm/ 1000sq km)

16

32

18000 (by 2017) 125000 (by 2020) 80000 (by 2017) 1500 (by 2010-11)

2 3

Roads (km/ 1Sqkm) Energy (units per

capita-annum)

1.07 700

1.50 1400

Airports 4 Districts(No)

24

5
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Rapid Mass 0 134 Transportatio Infrastructure Policy 2007 n (km)

27000 ( by 2017)

Karnataka- Growth Drivers

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

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Port / Railways/ Industrial Zones

MORMUGAO
Key

~150 km

Karwar Belekeri Tadri

Major Port

Non-Major Port

Rail Line

Honnavar Bhatkal ~150 km Kundapura Hangarkatta Malpe Padubidri

Proposed Rail Line

NEW MANGALORE Old Mangalore

Port / Railways/ Industrial Zones

Nanded

MORMUGAO
Key

~150 km

Karwar Belekeri Tadri

GADAG

Major Port

Non-Major Port

Rail Line

Honnavar
SSPN

Surveys 2009-10

Bhatkal ~150 km Kundapura Hangarkatta Malpe Padubidri

BIDADI
KUSHAL NAGARA

Proposed Line Survey Progress

WF

NEW MANGALORE Old Mangalore

ANEKAL

Cost of New works including proposals of 09-10

No of works
Surveys Completed Surveys under progress Surveys scheduled in 2009-10 Total
GoK share

Total Kms
978.80 1643.44 785.00

Total Cost in cr.

6547.00 11505.90 3925.00

6 15 8

28

3407.24

21977.90

Rs. 15000 cr (approx) spread over ten years or upto year 2020 presuming two thirds contribution in all projects

Airports

Existing
BIJAPUR

Existing
Proposed New International Airport

BELGAUM

GULBARGA

HUBLI BELLARY

HASSAN BANGALORE MANGALORE MYSORE

Existing old HALnternational Airport

Cargo Traffic Indian Ports 1950-2008

Cargo Traffic at Indian Ports, 1950-2008 (million tonnes) Year Cargo Traffic 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2007-08 Major Ports %age share 20.01 39.63 58.14 80.51 152.85 281.11 519.23 Non-Major Ports Cargo Traffic %age share 88.89 2.5 11.11 90.01 4.4 9.99 88.04 7.9 11.96 88.95 10 11.05 93.28 11.02 6.72 76.39 86.9 23.61 72.08 201.15 27.92
Source: India Infrastructure Research

Total Cargo Traffic

22.51 44.03 66.04 90.51 163.87 368.01 720.38

Cargo in Major Ports in 2007-08

Cargo Traffic at Major Ports in 2007-08 (million tonnes) Major Port Chennai Cochin Ennore JNPT Kandla Kolkata Mormugao Mumbai New Mangalore Paradip Tuticorn Visakhapatnam Total Ministry target for 2007-08 Cargo Traffic in 2007-08 55.86 57.15 16.94 15.81 11.7 11.56 49.38 55.84 60 64.89 58.88 57.28 38.94 35.13 58.76 57.04 34.34 36.02 45.89 42.44 20.39 21.48 64.24 64.59 515.32 519.23
Source: India Infrastructure Research

Cargo in non-Major Ports in 2007-08

Cargo Traffic at Non-major Ports in 2007-08 ('000 tonnes) State/Union Territory Total No. of Minor ports No.of Operational Ports Total Cargo Traffic Maharashtra 48 16 11,600.00 Gujarat 42 19 1,47,000.00 Kerala 17 3 149.51 Tamil Nadu 15 12 880 Andhra Pradesh 12 3 17,279.00 Karnataka 10 4 8,894.64 Goa 5 1 12,824.00 Orissa 13 1 350.00 West Bengal 1 0 0.00 Andaman & Nicobar Islands 23 9 2,159.00 Puducherry 2 1 9.76 Daman & Diu 2 0 0.00 Lakshadweep 10 0 0.00 Total 200 66 2,01,145.91
Source: India Infrastructure Research

Airports in India
Airport in India AirPorts status International Domestic Customs Civil Enclaves Total No of Airports 17 79 8 24 127
Source: India Infrastructure Research

Operational Airports

89

Freight Traffic at Airports

Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Freight Traffic (000 tons) 854.28 979.36 1,068.66 1,280.27 1,403.94 1,553.46 %age Change 0.96 14.64 9.12 19.80 9.66 10.65
Source: India Infrastructure Research

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
Sr Project Name PPP Type Project Cost Crs 2478 1930 930 303 8600 5800 VGF Crs 107 ------

1 2 3 4 5 6

Hyderabad International Airport Bangalore International Airport Kannur Airport Project Cochin International Airport Modernization of Delhi International Airport Modernization of Mumbai International Airport

BOOT BOOT BOT-Annuity BOO LDOT LDOT

TOTAL

20041

107

Skills & Technology Brought Together

Engineering Colleges Enrolment Polytechnics Enrolment 135 44,375 186 34,000

Industrial Training Institutes

Enrolment Govt. Tool Room & Trg. Centres and Nettur Technical Trg. Centres Enrolment

600
1,20,000

15
575

Skills & Technology Brought Together

Universities Allopathic Colleges Dental 11 26 41

Ayurvedic
Homeopathy Unani Naturopathy & Yoga General Colleges
IISc - Bangalore

55
10 4 3 712

Indian Institute of Management National Law School of India University

Indian Institute of Science

Indian Institute of Information Tech. Institute of Bio Informatics & Applied Biotechnology

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

Sector Nos Value (Rs Cr)

Transport Urban and Municipal Infrastructure Tourism Energy Industrial Infrastructure Other Agri-Infrastructure Healthcare Total
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176 19 16 4 2 1 3 3 224
Infrastructure Policy 2007

69939 42569 1621 14504 9522 50 568 6 138779

21 21

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
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Sector Focus
Agri-Infrastructure Education Energy Healthcare Industrial Infrastructure Irrigation Public Markets Tourism Transportation & Logistics Urban and Municipal Infrastructure
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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

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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

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Procedure- Flow Chart1

1. Project Proponent to submit an application for Swiss Challenge with filled in Checklist and Prefeasibility Report 2. Admin Dept to Scrutinize If meets Public Need If any ongoing process innovative or suomoto

0
M

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
End of 1st
Month

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 2
M

5. Admin Dept to obtain KTPP exemption

2
M

4. Application to SWA through IDD for permission to Proceed

A
26

Procedure- Flow Chart2

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

6
M

8. Clarification from the Proponent

A
8A. Admin Dept to concurrently prepare RFQ/RFP (Combined), CA, Proj Info. Memo.
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 27

11. NIT(Tender) and Receive Bids against procurement docs of (a) Single stage RFP/RFQ (b) MCA (c) Proj Info. Memo

9
M

10. Approval From SWA / SHLC for Tendering

7
M

12 Mon

Procedure- Flow Chart3

B
13. Original Proponent to match the superior proposal if any and be declared as concessionaire 14. Project Proponent refuses to match
Superior bidder declared as Concessionaire

12. Original Proposal and Counter proposal to be evaluated and ranked

13
M

14
M

15. GoK / GoK agency to reimburse the proponent

16. GoK / GoK agency to reimburse the proponent if the project is not taken up due to reasons not related to project proponent

Letter of Intent, Concession Agreement

16
M

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
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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
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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
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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 ?
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Support Systems to Line Depts

PPP Cell
Sector gap Study Project Identification Project Development Transaction Management Project Implementation Monitoring Capacity Building-

Projectisation
iDeck, KIPDC,KESOL, Transaction Advisers Infrastructure Policy 2007
33

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HIGH SPEED RAIL LINK (HSRL) TO BANGALORE INTERNATIONAL AIRPORT

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34

HSRL Alignment
DEVANHALLI AIRPORT 33.296 KM

YELAHANKA 15.463 KM

HEBBAL 8.885 KM MG ROAD CAT 0.095 KM

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Monorail Corridors (CTTP)

Corridor II

Corridor i
Corridor Iv
Corridor III

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36

CTTP - Mono Rail

S.No. Corridor Hebbal to J.P.Nagar (Bannerghatta Road) along the western portion of outer ring road PRR to Toll Gate along Magadi Road Kathriguppe Road / Ring Road Junction to National College Hosur Road Bannerghatta Road Junction to PRR along Bannerghatta Road Total Length (Km)

1 2 3

31.0 9.0 5.0

15.0
60.0
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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

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38 38

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: Power Sub-Station & Social Forest: For Development on PPP basis: Total 83.24 Acres 21.34 Acres 309.07 Acres 413.65 Acres

(Commercial Devpt: 217 Acres, Roads & Utilities: 92.07 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
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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
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Food Parks Food Parks under implementation

Malur, Hiriyur, Bagalkot, Jewargi and Chickmagalur

New Food Parks

Shimoga, Bangalore Rural, Tumkur, Davanagere, Belgaum, Bijapur Districts.

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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
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Location details : 18 hole Golf Course at Mangalore

N

Govt. Land (20 Acres)

Arabian Sea 3/13/2014 Infrastructure Policy 2007 43

Tourism Circuit Development Project Packages

Package location Jog Falls Package I Agumbe

Banavasi
Badami Package II Package III Package IV Pattadakal Aihole Belur Bijapur

Package V

Gokarna

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Slide 44

Tourism Projects in Karnataka on PPP Format

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45

Airport Link

Commuter Rail Mono Rail/LRT system

Core Ring Road

Outer Ring Road

Metro Phase 2 & 3

BRT System

Periphe ral Ring Road

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CTTP for Bangalore

Infrastructure Policy 2007

46

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