NICE makes composite $2-billion proposal to Rajasthan

Nandi Infrastructure Corridor Enterprise Limited (NICE), which is building the 111-km Bangalore-Mysore expressway, has made a proposal to Rajasthan to build an expressway between Jaipur and Udaipur, a ring road around Jaipur and an international airport near Jaipur at a total investment of $2 billion.

According to managing director of NICE Ashok Kheny, about four months ago the Rajasthan government had floated a tender inviting infrastructure development companies to develop core infrastructure in the state under the Swiss challenge method.

Under the Swiss challenge method, bidders are asked to improve on an initial proposal and once this is done, the original proposer is asked to match the best subsequent bid.

However, NICE, which did not participate in the tender, made a separate presentation to the state government on February 7 for the three projects. The expressway between Jaipur and Udaipur will be a brand new road apart from the existing National Highway between the two cities, Kheny said.

"I have suggested to the government to simultaneously build the outer ring road and an expressway till Udaipur, which will help attract more international tourists and increase their tourism revenues to $10 billion in the next 10 years from the present $1 billion. I have also suggested to them to simultaneously go for an international airport near Jaipur. As of now foreign tourists have to lose a lot of time to arrive in the state capital via Delhi," he said.

According to Kheny, the government can enter into a memorandum of understanding with the company and there is no need to invite global tenders to construct the expressway as there would be no financial commitment on the part of the state government to these projects. Also, the existing national highway would continue to function, he said.

"At present, we are working out modalities through which we can participate in the projects "� whether to go through the Swiss challenge method or expression of interest or the MoU way," a NICE spokesperson said.

Kheny has proposed to construct the outer ring road with nine major interchanges around Jaipur and nine theme-based townships. The townships will be built on different themes like film city, arts and crafts, and textiles.

The 350-km expressway will also connect the proposed 3,000 acre information technology park near Jaipur, where Progeon is setting up a campus. The expressway will have a provision for building monorail in the median. "The chief minister has liked our concept and we will be submitting a detailed project report in three months' time," he said.

As per the preliminary estimates, the project comprising the international airport, expressway and the outer ring road will cost about $2 billion. "Financing the project will not be difficult. Many foreign institutional investors have evinced interest in investing in India. If we are awarded the contract, we will set up a special purpose vehicle and execute it in 42 months including the international airport," Kheny said.

Kheny also said the Rajasthan government wants to construct a new road between Jaipur and Delhi by constructing a tunnel through the Ghat-ki-Guni mountain range, which will reduce the distance between the two cities by about 40 km to 237 km.