Crumbling Bangalore draws lesson from Gujarat: a new infrastructure law

Crumbling Bangalore draws lesson from Gujarat: a new infrastructure law
Indian Express

BANGALORE, May 16:Saddled with growing fears of flight of capital and industry, the Karnataka Government is set to unveil a radical policy that arms it with powers to facilitate increased private participation to upgrade infrastructure.

Unlike the existing state policy of 1997, the new one—with inputs from industry groups—provides legal safeguards through an Infrastructure Act to encourage private participation.

The policy, to be presented to a meeting of Principal Secretaries on Wednesday before going to the Cabinet, is modelled on the Gujarat Infrastructure Development Act of 1999, also known as Build, Own, Operate, Transfer (BOOT) Law, and the Andhra Pradesh Infrastructure Development Enabling Act of 2001. Like these two laws, it provides a clear legal framework for all public-private projects and incorporates viability, concessions and other agreements.

‘‘Without a clear-cut policy on revenue sharing and disputes, the government finds it difficult to partner private players for infrastructure. The new policy will change that,” said R K Mishra, co-chair of the public-private empowered committee on Bangalore’s infrastructure. The state;s treatment of private projects like the Mysore highway, light rail and the airport project have hardly helped.