NICE to rope in strategic partners for BMIC

NICE to rope in strategic partners for BMIC

The Hindu

Company to float separate subsidiaries to develop each of the three phases of the project

BANGALORE: Nandi Infrastructure Corridor Enterprise Limited (NICE), the entity formed to implement and run the Bangalore-Mysore Infrastructure Corridor, will rope in a couple of strategic partners to develop various key components of the mega project.

"We are looking at inducting strategic partners to develop and operate five townships, a 400 MW power plant, telecommunications network, water supply system, sewage treatment facility, tourism, theme parks, amusement and recreational facilities," a NICE official told The Hindu .

"The strategic partners could come either by way of direct equity participation in the project or in the form of separate, stand alone joint ventures in which NICE will also have a stake", the official said.

The strategic partners will be specialists in their respective fields so that NICE can focus on the core competence of developing and running the expressway. The basic infrastructure for various project components will be provided by NICE while the technological competence will be brought in by the strategic partners.

NICE is currently holding parleys with prospective investors including Reliance for inducting them as strategic partners.

"But, nothing has been finalised yet," the official said. NICE reckons that investor interest will be huge in developing and running the telecommunication system and the power plant given the captive consumers residing at the five townships spread over 13,000 acres of land with each township having one lakh dwellers on an average.

Though, the expressway part of the project is estimated to cost around Rs 2,200 crores, the investment required for developing townships, power plant, telecommunication network and a few other components is expected to be of the order of Rs 18,000 crores to Rs. 20,000 crores.

"Hence, there would be greater commitment if there is equity participation by the strategic partners", the official said. NICE has also decided to float separate subsidiaries to develop each of the three phases of the BMIC project.

"This is being done to ring fence and protect each phase from the risks associated with the other phases", he said. NICE has already floated Nandi Economic Corridor Enterprise Ltd (NECE) to implement the first phase of the project.