The state aims to hike spending on infrastructure from 3.2% of Gross State Domestic Product to 8-9% during the Twelfth Plan.
Karnataka state, which presently invests 3.2 per cent of its gross state domestic product (GSDP) on infrastructure development, has set an ambitious target of increasing this to 8-9 per cent of GSDP during the 12th five year plan period. The state’s GDP was an estimated Rs 328,000 crore in 2010-11.
Delivering his key-note address at the second annual Business Standard Infrastructure Round Table 2011, he said the government has given utmost priority to infrastructure development and has adopted a holistic focus that has led to development of mega projects across the state.
The role of the private sector and the community is emphasised in the overall development of the state. The mode of implementation of projects in Karnataka is gradually shifting from government-sponsored to public-private partnership (PPP) — a win-win situation for all stakeholders.
Gowda said 105 infrastructure projects are being undertaken through the PPP format. These are at various stages of development and involve an investment of Rs 80,946 crore.
“There have been challenges in implementing PPP projects. Some concerns have been expressed by developers. At every step we have taken corrective measures to address these concerns. The state is giving a new life to the PPP format,” he said.
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Explaining the measures initiated by the government to give a fillip to infrastructure in the state, he said the government is moving the Infrastructure Bill, which provides for the constitution of an Infrastructure Authority that would expedite the development of infrastructure projects in PPP formats.
“To provide viability gap funding for infrastructure projects, we have also introduced a VGF scheme for the state. We will involve leading transaction advisors to make an Infrastructure Investment Plan for Karnataka which will serve as the Master Plan. Transaction advisors will also help in identifying projects and build the capacity of government officials involved in implementing PPP projects. We are confident that these initiatives would definitely help in boosting the economic growth of the state,” Gowda said.
Gowda announced that the work on building minor airports at Shimoga and Gulbarga would be completed and the airports made operational by next July. Other major projects in the pipeline include an all-weather Greenfield port at Tadadi, a gas pipeline between Dabhol and Bangalore, city gas distribution for Bangalore, an integrated bulk water supply system and distribution schemes in many districts, a Intermodal Transit Centre at Subhashnagar and a Traffic and Transport Management Centre at Hebbal in Bangalore.
In addition to improving air connectivity, the government is also taking steps to improve rail connectivity in the state. Projects involving investments totalling Rs 24,000 crore are being undertaken, which include 2,137 km of new railway lines. Gauge conversion and doubling of lines are also being undertaken, the chief minister said.
“In this regard, we had a detailed meeting with the ministry of railways and I am happy to share that three new railway lines — Gadag to Wadi, Kengeri to Chamrajnagar and Srinivaspura to Madanapalle — have been approved. On completion of these projects, the rail density, which is measured in number of kilometers of rail line per thousand square kilometer of area, would increase from the existing 16 to 23,” he said.
Bangalore recently witnessed the launch of commercial operations of one stretch of phase-I of Namma Metro from Baiyyappanahalli to M G Road. In-principle approval for phase-II has also been received.
The state is well connected to its neighbouring states and other parts of India and the world through road, rail and air. With 14 national highways, the state accounts for six per cent of the total national highway network in the country. Inter-state road connectivity is primarily by way of the 114 state highways.
With the development of industrial corridors under the Suvarna Karnataka Development Corridor programme, industrial nodes and industrial areas along national highways will emerge. Overall development is proposed to cover regions that spread over Bangalore to Bidar via Bellary, Tumkur to Honnavar via Shimoga and Chitradurga to Mangalore via Udupi, Gowda said.
“Core infrastructure such as energy, road and rail linkages, inland container depots, free trade zones and urban infrastructure would be benefited by this corridor, making a significant impact on Karnataka’s economic growth,” he added.