Base in Karnataka Infrastructure Development Department Govt. of Karnataka ___________________________

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Foundation in Karnataka Infrastructure Development Department Govt. of Karnataka ________________________________________ ___________ Infrastructure Policy 2007

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 specialized Manpower One of the quickest developing Markets Steady GDP development rate Karnataka at a Glance Infrastructure Policy 2007

Karnataka at a Glance

Karnataka-Infrastructure venture Presently 4.5% of GSDP Target 8-9 % of GSDP India Competitive Index- 25 Huge shortfall in Tax-GDP proportion 22 %(35 %) Investment necessities (@ 2006 costs): Rs 92462 cr ( 11 th arrange) Rs 186275 Cr(12 th ) Rs 315657 Cr(13 th ) Required Annual Investment of upto Rs 25000 Crore Infrastructure Policy 2007

a couple Infrastructure Indices Infrastructure Policy 2007

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 Infrastructure Policy 2007

Port/Railways/Industrial Zones Key Major Port Non-Major Port Rail Line Proposed Rail Line MORMUGAO Karwar ~150 km Belekeri Tadri Honnavar Bhatkal ~150 km Kundapura Hangarkatta Malpe Padubidri NEW MANGALORE Old Mangalore

Port/Railways/Industrial Zones Nanded Key Major Port Non-Major Port Rail Line Surveys 2009-10 Proposed Line Survey Progress MORMUGAO GADAG Karwar ~150 km Belekeri Tadri SSPN Honnavar Bhatkal ~150 km Kundapura Hangarkatta Malpe WF Padubidri BIDADI ANEKAL KUSHAL NAGARA NEW MANGALORE Old Mangalore

Cost of New works including proposition of '09-'10 No of works Total Kms Total Cost in cr. Studies Completed 6 978.80 6547.00 Surveys under advance 15 1643.44 11505.90 Surveys planned for 8 785.00 3925.00 2009-10 Total 28 3407.24 21977.90 GoK share Rs. 15000 cr (approx) spread more than ten years or upto year 2020 assuming 66% commitment in all ventures

Airports Existing BIJAPUR Existing GULBARGA Proposed BELGAUM New International Airport HUBLI BELLARY Existing old HALnternational Airport HASSAN BANGALORE MANGALORE MYSORE

Cargo Traffic Indian Ports 1950-2008 Source: India Infrastructure Research

Cargo in Major Ports in 2007-08 Source: India Infrastructure Research

Cargo in non-Major Ports in 2007-08 Source: India Infrastructure Research

Airports in India Source: India Infrastructure Research

Freight Traffic at Airports Source: India Infrastructure Research

Stimulating Public Private Partnerships PPP Projects in Airport Sector In Airport division six activities are embraced on PPP mode with a venture cost of Rs 20,041 crs. Subtle elements of Airport Projects on PPP mode

Skills & Technology Brought Together Engineering Colleges 135 Enrolment 44,375 Polytechnics 186 Enrolment 34,000 Industrial Training Institutes 600 Enrolment 1,20,000 Govt. Apparatus Room & Trg. Focuses and Nettur Technical Trg. Focuses 15 Enrolment 575

Skills & Technology Brought Together Universities 11 Allopathic Colleges 26 Dental 41 Ayurvedic 55 Homeopathy 10 Unani 4 Naturopathy & Yoga 3 General Colleges 712 Indian Institute of Management IISc - Bangalore National Law School of India University Indian Institute of Science Indian Institute of Information Tech. Foundation of Bio Informatics & Applied Biotechnology

Important Current PPP ventures 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 stop (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

Distribution-Sector Wise Infrastructure Policy 2007 21

Enabling Policy and Regulatory Framework Long-term value and obligation Capacity to deal with the PPP Process Shelf of dependable, bankable Projects Private Sector ability to put resources into tasks Acceptance among the partners Infrastructure-Requirements Infrastructure Policy 2007

Sector Focus Agri-Infrastructure Education Energy Healthcare Industrial Infrastructure Irrigation Public Markets Tourism Transportation & Logistics Urban and Municipal Infrastructure Policy 2007

Initiatives Standardized Contractual Documents Bidding Documents RFQ RFP Model Concession Agreements Ports Airports Roads Water Supply and Sanitation – PBMC & PBDPS contract created (under ADB Assistance) Approval Mechanism SWA built up SLHCC Infrastructure Policy 2007

SWISS CHALLENGE Clause 29 of the Infra '07 strategy Innovative/suo moto Proposals Procedure Proponent Submits proposition for Prelim examination Provide 'endorsement to continue' with studies Submits a DPR with yield based detail Project Bid out Original advocate has first right of refusal Infrastructure Policy 2007

Procedure-Flow Chart… 1 3. Dept to Scrutinize if not known open needs VGF looked for is over 20% of venture cost barring land items or administrations for the most part accessible Contravenes Law Provisions 1. Extend Proponent to present an application for Swiss Challenge with filled in Checklist and Pre-practicality Report 2. Administrator Dept to Scrutinize If meets 'Open Need' If any progressing procedure "inventive" or " suo - moto " 0 M End of first Month 6. Administrator Dept to issue letter to lead studies in 4 months If not done, dept can proceed with no cases 5. Administrator Dept to get KTPP exclusion 4. Application to SWA through IDD for authorization to Proceed 2 M 2 M A

Procedure-Flow Chart… 2 7. Extend Proponent to submit DPR (all Govt Support in Money terms) Ability to meet specialized and monetary criteria cost of DPR Bid an incentive in fixed cover 8. Illumination from the Proponent 6 M A 8A. Administrator Dept to simultaneously get ready RFQ/RFP (Combined), CA, Proj Info. Notice. 9. Administrator Dept to Carry out with PPP cell Examine Docs Set yield based Specs Additional Studies for benchmarking, if need be Negotiate DPR cost to lower of 3 qualities Prepare Transaction Docs Determine improvement costs FD Approval 11. NIT( Tender) and Receive Bids against acquisition docs of (a) Single stage RFP/RFQ (b) MCA (c) Proj Info. Notice 10. Endorsement From SWA/SHLC for Tendering 7 M 9 M 12 Mon B

Procedure-Flow Chart … 3 B 14. Extend Proponent declines to match Superior bidder pronounced as Concessionaire 12. Unique Proposal and Counter proposition to be assessed and positioned 13. Unique Proponent to coordinate the prevalent proposition assuming any and be pronounced as concessionaire 13 M 14 M 15. GoK/GoK organization to repay the advocate 16. GoK/GoK office to repay the defender if the venture is not taken up because of reasons not identified with venture advocate Letter of Intent, Concession Agreement 16 M

Central Assistance-VGF PPP venture ought to be from-Roads, Sea ports, airplane terminals, inland conduits, Power, Urban transport, water supply & sewerage, strong waste and other physical framework Infrastructure in SEZ Government Support VGF not to surpass 20% of the aggregate venture cost-Land cost Government or statutory element can best up with another 20% Approval handle set down Viability Gap Funding (VGF) For 3 ventures, VGF subsidizing of Rs 120 Crore VGF of Rs 1040 Crore for High speed Rail Link Infrastructure Policy 2007

Incentives & Concessions A. Assistance: Land to be procured if required Clearances Provision of water & control B Asset based Support Provision of Govt land at Concessional rate if accessible Allowing Commercial improvement Develop basic linkage Infra Infrastructure Policy 2007

Incentives & Concessions C. Charge Concessions: Entry& Spl Entry Tax on Machinery, Equipments & Construction materials-Limited to 25 Lakhs & 3 years Stamp obligation ashore move in Zone I(100%0, II(50%) Conversion fine-same example as above D. Take or pay Guarantee E. VGF Infrastructure Policy 2007

Deliverables by Government Clearances Land Acquisition Compensation installment Market estimation of land Replacement benefit of building Resettlement & Rehabilitation Dislocation recompense Allocation of corresponding resources Share in the new venture ? Foundation Policy 2007

Support Systems to Line Depts PPP Cell Sector crevice Study Project Identification Project Development Transaction Management Project Implementation Monitoring Capacity Building-Projectisation iDeck, KIPDC,KESOL, Transaction Advisers Infrastructure Policy 2007

HIGH SPEED RAIL LINK (HSRL) TO BANGALORE INTERNATIONAL AIRPORT Infrastructure Policy 2007

DEVANHALLI AIRPORT – 33.296 KM YELAHANKA – 15.463 KM HEBBAL – 8.885 KM MG ROAD CAT – 0.095 KM HSRL Alignment Infrastructure Policy 2007

Corridor II Corridor Iv Corridor III Monorail Corridors (CTTP) Corridor i Infrastr