Mumbai roadshow attracts PPP for railway projects

L&T, Hindujas have come forward to invest in State

L&T and Hinduja Group of Companies, on Thursday, came forward to invest in the railway projects at a one-to-one meeting with Chief Minister B S Yeddyurappa, organised as part of the investment road show at the Taj Mahal Palace Hotel in the financial capital of the country.

“These companies have shown interest in investing in railway projects. We have held a preliminary meeting today. Details like the kind of private participation required among others will be worked out soon,” Yeddyurappa told reporters after the meeting.

The chief minister held the meeting with senior executive vice president of L&T limited Chatwani and Hinduja Group of Companies CMD Ashok P Hinduja on the occasion.

The Railway Ministry in its 2010-11 budget, has approved eight PPP projects to the State – 167 km long Hubli–Ankola line,  140 km-long Bijapur–Shahabad, 84 km-long Shimoga–Harihar line, 52 km-long Whitefield–Kolar–Mulbagal, 142 km-long Kudachi–Bagalkot, 210 km-long Tumkur–Davangere line, 150 km-long Alamatti–Koppal line, 109 km-long doubling of Londa–Goa (Vasco-da-Gama) line.

If implemented, these projects will be of immense help to boost the industrial development of the State.

They will improve port connectivity, development of proposed cement industrial zone, industrial zone, iron industry zone and others.

Rs 6,000 crore required

An investment to the tune of Rs 6,000 crore is required to build over 1,000 km railway line. However, the State government had not been able to find a private partner to invest such a huge sum so far.

Seven other major companies, including CEAT Limited, Godrej Industries, Bharat Forge Limited and Grasim industries, too have evinced interest to invest in various sectors.
Industries Minister Murugesh Nirani said Hinduja Group is also looking for investing in the proposed International Convention Centre near Devanahalli international airport. Godrej Industries has shown interest in affordable housing and townships across the State, he added.

The CM has asked the companies to file applications before the government.

Memorandum of Understandings with the companies to implement these projects will be signed during the Global Investors Meet scheduled to be held on June 3 and 4, he added.
Later in the evening, the chief minister held a road show projecting investment potential of Karnataka.  Representatives from around 100 Mumbai-based companies participated.

Mittal deposits money

Nirani said the world’s largest steel manufacturer Arcelor Mittal has recently deposited Rs 60 crore to the State Government as an initial cost for land acquisition for its proposed Steel Plant in Bellary. The land acquisition process has already begun. Preliminary notification has been issued. The company has plans to set up its steel plant at Toranagal in Bellary district, he added.

Monorail for Bangalore

CM Yeddyurappa said three companies have shown keen interest in implementing a mono rail project for Bangalore. He, however, did not disclose the names of those companies.

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