Along side the new international airport, this eight-lane ORR project has played a key role in changing the profile of Hyderabad as it has unleashed the growth potential of vast extent of areas triggering an outward expansion of the city.
About Rs 5,300 crore was spent on the project while some traffic and illumination works besides a few connecting radial roads are still underway. Of this total length, about 62 kms were executed under the build operate and transfer (BOT) wherein the private contractors had invested the money.
The first major urban project taken up in the undivided Andhra Pradesh, the Hyderabad ORR project had to face intermittent delays on account of reasons ranging from land acquisition issues to changes in alignment and subsequent political uncertainties. Started way back in 2006, the project was originally scheduled to be completed in 2010.
"JICA had sanctioned 83.9 billion-Yen loan in two phases in 2006 and 2007 respectively, though we were able to complete the work of the 71-km length project by exhausting only around 45 billion Yen of the total loan component. Because in the subsequent years Yen appreciated against the Indian currency translating into more rupees," a senior official of the Hyderabad Metropolitan Development Authority (HMDA) told Business Standard.
The project was being implemented by the Hyderabad Growth Corridor Limited (HGCL), a Special Purpose Vehicle (SPV) under the Hyderabad Metropolitan Development Authority (HMDA).
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At the time of agreement the loan amount in Indian currency was around Rs 3,200 crore while it is now over Rs 5,500 crore.
In fact, Telangana government has approached the Finance Ministry seeking permission to utilise the foreign exchange for saving of around Rs 1,600 crore arising out of this loan agreement. However, the Department of Economic Affairs had so far not responded positively to this request, according to the officials. Loan repayment, which begins from March, 2018 will have to be made only in Japanese currency irrespective of its value fluctuation against the Indian currency.
"Out of the total length nearly 71 km, the northern arc between Patancheru and Pedda Amberpet, has been constructed through JICA ODA loan amounting to 83.9 Billion Japanese Yen (approx. Rs 5,572 crore) in two phases. The loans also cover construction of 10 radial roads that provide efficient connectivity between the ORR and inner ring road, installation of intelligent transport systems (ITS), toll plazas, toll administrative buildings etc, and associated consultancy services where Nippon Koei has been providing Japan's high quality assistance,"JICA said in a statement on Friday.
Takema Sakamoto, chief representative, JICA India said: "The ORR will assist in diverting the non-destined traffic in Hyderabad, thereby promoting regional economic development and improving the urban environment through mitigation of traffic jams and decrease of pollution caused by increasing vehicles in urban area. I am delighted that Japan's experience and knowledge contributed to such high quality infrastructure."
Through its grant based technical assistance, JICA dispatched Japanese experts to develop an ITS master plan for the Hyderabad Metropolitan Area. Amongst the first in India, a closed type of toll collection system where users would pay toll for the actual distance travelled is being implemented. JICA is also funding the installation of Highway Traffic Management System (HTMS) and Toll Management System (TMS) that would ensure safe and efficient operations of the ORR. The loans also cover a pilot project for city ITS which would enable efficient movement of traffic within the congested city areas. A world class traffic control center is also under implementation, according to JICA.
Minister of Municipal Administration and Urban Development K T Rama Rao and officials from JICA and Japanese Embassy took part in the inauguration of 71 km project stretch.