Karnataka govt wants PPP model for Hubballi-Dharwad Electric Rapid Transit project

Hubballi: The probability of implementing District In-charge Minister Santosh Lad’s ambitious project-- Electric Rapid Transit (e-RT) between Hubballi and Dharwad-- seems unlikely due to the high costs and cost sharing arrangement between the State government and the private company.

Currently, the project is estimated to be implemented at a cost of Rs 6,500 crore, including interest cost and 15 years of maintenance cost.

However, sources said that the State government is not keen on investing such a huge amount and wants the private company to implement the proposed project on a Public-Private Partnership (PPP) model.

On Tuesday, a demonstration on the proposed e-RT system was held at Suvarna Vidhana Soudha in Belagavi. In the review meeting, Transport Minister Ramalinga Reddy, Urban Development Minister Byrathi Suresh, Labour Minister Lad, MLAs N H Konaraddi, Arvind Bellad, Mahesh Tenginakai and M R Patil, Chief Secretary Shalini Rajneesh, Transport Department Secretary N V Prasad and other officers, and representatives from the private company were present during the presentation.

The representatives proposed the Hybrid Annuity Model, where the State government was asked to invest 40% of the total project cost, and the remaining 60% would be financed by the private company.

Govt wants PPP model

Sources said, after the demonstration, both transport and urban development ministers questioned the viability of the project for the tier-II city and said it is not possible for the government to invest 40% equity in the project. The ministers also asked the private company to rework the project and submit a fresh proposal on the PPP model only.

Minister Santosh Lad told DH that the private company has been asked to rework on the plan and resubmit it to the department with the PPP model.

The company nodded to rework on the proposal. Once they submit the revised plan, the government will evaluate it and take necessary actions.

During the meeting in Belagavi, MLA Arvind Bellad expressed his concern about the flyover in the central parts of the city. MLA Mahesh Tenginkai questioned the feasibility of the project. Meanwhile, the chief secretary instructed the private company for the complete rework on it on the PPP model.

Lad’s dream project

Parallel to the existing Bus Rapid Transit System (BRTS), Minister Santosh Lad came up with the plan of launching the e-RT like project . Lad, who visited France to get firsthand information on the e-RT system about a few months ago, took up further steps to implement better transport facilities for the twin cities.

A few months back, Switzerland-based transport company HESS India and financing company SSB AG made a memorandum of understanding (MoU) with the State government to prepare the Detailed Project Report (DPR) to launch the e-RT project in Hubballi-Dharwad. The representatives from the HESS India presented the DPR before the government in Belagavi on Tuesday.

According to the plan, on the 26.2 km corridor, it will have 11.5 km of elevated corridor (flyover), 1.4 km of underpasses at critical junctions, 38 bus stations, three terminals, and more.