KCR pet projects get cold shoulder from infrastructure firms
Reputed firms across the country are shying away from becoming official or joint partners in major infrastructure projects being planned by the state government as they are apprehensive on the rate of returns on their investments.
Hyderabad: Reputed firms across the country are shying away from becoming official or joint partners in major infrastructure projects being planned by the state government as they are apprehensive on the rate of returns on their investments.
A day after the presentation of the state budget with Rs 1.3 lakh crore in the Assembly, Municipal Administration and Urban Development Minister K Taraka Rama Rao on Tuesday held an in-camera meeting with the executives of 14 major private companies in the country, which includes Larsen and Toubro Infrastructure Development Projects Limited, GMR Infrastructure Limited,
RMZ Ecoworld Infrastructure Private Limited and Brigade Infrastructure to discuss major infrastructure projects to be taken up in the city at the cost of about Rs 80,000 crore. Though all the companies welcomed initiatives and projects of the state government, a majority of the representatives reportedly expressed doubts on the rate of return on their investments and also the tight regulatory atmosphere prevailing across the country with regards to extending loans to firms dealing in infrastructure projects.
Some of the major projects that were explained to these industry bigwigs include, the Rs 21,000-crore Strategic Road Development Plan (SRDP), Rs 15,000-crore internal and external road development project and the Rs 3,000-crore beautification project on River Musi. Sources said that most of these companies were not forthcoming as there was no allocation in the budget 2016-17 for these proposals.
The state government has already announced the construction of multi-level flyovers, sky-ways and grade separators at KBR Park, L B Nagar, Rasoolpura, Uppal, Owaisi junction, Kukatpally, Bahadurpura, Abids, Chaderghat and other places as part of the SRDP of Rs 21,000 crore.
It has also decided to develop core areas of city by spending Rs 30,370 crore to meet the global standards. It includes Rs 15,000 crore for water supply and sewerage management, and Rs 20,661crore for development of both internal (inside outer ring road) and external roads (outside ORR).
The government has also decided to construct two reservoirs at Keshavapuram in Shamirpet mandal (Rs 1,660 crore) and Devallamma Nagaram in Choutuppal mandal (Rs 1,960) with 20 TMC capacity each. According to sources, these companies expressed that they were financially not strong to take up these projects as the bankers were not ready to provide loans.
However, the companies agreed to meet several small infrastructure projects under corporate social responsibility. Sources said that most of the companies promised to get back to the state government after holding discussions with their respective operational heads on proceeding further with these mega projects coming up in the city.