New policy, new beginning

New policy, new beginning
The Karnataka government is drafting a new infrastructure policy for smooth sailing of delayed and jinxed projects. The biggest hurdle — land acquisition — will be made simple through a special legislation
The TImes of India

Bangalore: Want land to build an infrastructure project in Karnataka? Just wait for a few months and it will be smooth sailing, says the government. Stung by delays, tangles and troubles faced by some major projects, the state is drafting an infrastructure policy that seeks to remove all hurdles. For example, one of the biggest problems — land acquisition — is to be made simple through a special legislation.
“The revenue department will be involved in drafting the legislation, which will also include a compensation package. The legislation will apply to land acquisition for all kinds of infrastructure projects,’’ sources said. This is the second infrastructure policy to be brought out by Karnataka. But it admits, right in the preamble, that the earlier one in 1997 did not achieve its target of private investment, though it does not ascribe reasons for the same.
The new policy hopes to make up for it. Dubbed the ‘PPP’ (public-private-partnership) policy for its focus on private investment, it covers every aspect that could go by the name of infrastructure — from agro-processing to hotels to power to roads.
It divides the entire state into three zones — more and most backward taluks (zone 1), backward taluks (zone 2) and industrially developed taluks (zone 3) — similar to the industrial policy. Unlike Andhra Pradesh, where incentives are given across the board for infrastructure projects, incentives here have been earmarked for zones 1 and 2. These range from stamp duty concessions to entry tax waivers and land at cheaper costs. Zone 3, that includes Bangalore and surrounding areas, does not qualify for any incentives.
One of the unique points in the new policy is the proposal to put in sector-specific regulators, a la the Karnataka Electricity Regulatory Commission (KERC) for the power sector. So, for any problems in road sector, including land acquisition and government clearances, the issue can be taken up and cleared at the road regulator level, instead of approaching the courts.
“The policy has been sent to industrial bodies for comments. Depending on the feedback and changes suggested, the cabinet is expected to clear it as soon as possible,’’ sources said.
THE CATEGORIES
Agriculture and horticulture markets; horticulture parks; agro-food processing and allied infrastructure; power generation, transmission and distribution; oil and gas; renewable and non-conventional energy; industrial parks, SEZs, industrial estates and townships; canals and dams; amusement and theme parks; hotels\resorts; convention and exhibition centres; trade fairs; cultural centres; road and rail transport; airports and airstrips; minor ports and harbours; inland water transport, bus/truck/urban transport terminals; warehousing infrastructure; multi-storey parking facilities; townships and commercial development; water supply and sewerage; desalination; underground drainage; waste water recycling and solid waste management. ET CETERA
High-level committee under CM set up to clear infrastructure projects Dedicated infrastructure fund set up to fund PPP projects; all fees and user charges collected (like the erstwhile ELRTS cess on petrol for Bangalore) will be credited to this fund Legislative constraints to PPPs removed Private partner will be allowed to put up motels, gas stations, recreational centres on project site Infrastructure department, assisted by IDecK, will be the nodal one for all PPP projects
ON PRIORITY
Dedicated express rail/road link facility for new international airport at Devanahalli Tadri/Belikere port Critical rail linkages State highways Intermodel transit centre at Subashnagar in Bangalore Tourism and eco-tourism resorts at various locations Mega-convention centre at Bangalore Special Economic Zones Water supply and distribution infrastructure for North Karnataka districts Solid waste management facilities for several towns across the state Urban transport infrastructure such as bus terminals, truck terminals and common-user parking facilities for Bangalore and other cities/towns Power-generation projects and transmission projects New policy not the solution: Kheny
As head of one of the most beleaguered infrastructure projects, Bangalore Mysore Infrastructure Corridor (BMIC), promoter Nandi Infrastructure Corridor Enterprise (NICE) managing director Ashok Kheny has been at the receiving end of infrastructure ills for the last 10 years. But he felt the new infrastructure policy will not resolve any of the ills his project has faced. “Where is the need for another law for land acquisition? Let the government implement existing laws in letter and spirit, it is more than enough for any infrastructure project. The problem is not one of law, but of corruption at lower levels,’’ Kheny maintained.
Even the move to appoint a regulator did not find favour with him. “The regulator is a political appointee. It may not work out well for the project promoters,’’ he felt.