Uttaranchal in talks with ADB, FIs for $750 mn ADB assistance

The Uttraranchal government is in talks with the Asian Development Bank (ADB) and Indian financial institutions like Industrial Development Finance Corporation (IDFC) and IL&FS to get a $750-million assistance package to bolster its energy, roads, and urban infrastructure sectors.

According to M Ramachandran, Additional chief secretary and Infrastructure Development commissioner of Uttaranchal, the move is in keeping with the state's 10-year infrastructure vision.

Uttaranchal currently has a capacity to generate 1,120 Mw of hydel power and a long-term potential to produce about 20,000 Mw. The government has already initiated plans to harness nearly 34 per cent of the estimated capacity.

The vision document envisages doubling Uttaranchal's per capita income to Rs 30,000 per annum from the present level of Rs 14,000, and halving the number of people below the poverty line in 10 years.

The Uttaranchal government had appointed Crisil to carry out detailed sectional studies to identify their growth potential and the amount of investments required in those sectors. The sectors identified as growth leaders are power, tourism, agri-processing, industrial development, information technology, and biotechnology.

According to Crisil's recommendations, the state needs an investment of Rs 700 crore in the next three years to improve its road connectivity.

Crisil said there was a need for 100 per cent all-weather roads from Delhi to the state capital Dehra Dun, which will cover all the rural areas on the route and halve the travel time between the two cities to four hours. Crisil has also asked the Uttaranchal government to improve the state of arterial roads connecting the Garhwal and Kumaon regions.

Work has already started on expanding the Jolly Grant airport in Dehra Dun to make it possible for larger aircraft like Airbus A 320 to land in the city.

Ramachandran said Uttaranchal had made a good beginning in the industrial sector by attracting investments worth Rs 8,300 crore so far.

In the biotech sector, Crisil said the state could have a biotech park spread across 1,000 acres and it could contribute close to Rs 5,000 crore to the economy over the next 10 years.