Maharashtra to woo private sector in infrastructure
Tuesday, 12 November 2002, 20:30 IST
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MUMBAI: Maharashtra is planning to rope in the private sector for infrastructure development in a big way, encouraged by the response to setting up a special economic zone (SEZ) near here. State government officials say a new law, the Maharashtra Infrastructure Development and Support Act (MIDAS), will be enacted to allow the private sector into a wide range of projects like township building that have so far been the government's turf. While the contents of the law are still being debated, the government has decided to set up an independent regulatory body called the Infrastructure Regulatory Authority. "Indian companies that meet the requisite criteria may even be allowed to tie up with international companies for the purpose," a senior official told IANS. Until now the private sector was only allowed to bid for contracts floated by government-owned infrastructure development agencies. Officials say the performance of the private sector has been encouraging so far. More than 33 road overbridges sprouted across Mumbai over just five years after private bidders were allowed to put up the structures. Similarly, private participation resulted in the Mumbai-Pune expressway being completed ahead of schedule, say officials. The Maharashtra government has also brought in a senior bureaucrat, T. Chandrashekar, to prepare the Infrastructure Plan for the state. Chandrashekar, who earlier headed the civic bodies of Thane and Nagpur cities, is credited with beautifying both the cities in just two years each. The government is also buoyed by the success of getting a number of international firms to bid for an SEZ in Navi Mumbai near here. At least 12 bidders have expressed interest in a Shenzen-type SEZ, including some from the U.S. and Singapore. A number of Indian business houses, including Reliance, Tatas and Birlas, have expressed interest in the project. The City Industrial Development Corporation (Cidco), which will partner the winning bidder, says the SEZ will be spread over a 50 sq km area. It will have an international airport, the proposed Navi Mumbai airport, and the services of the Jawaharlal Nehru Port Trust. The winner who will partner Cidco will be announced in January next year, say officials. The Navi Mumbai Special Economic Zone is wooing entrepreneurs with world class infrastructure, tax breaks and exemptions from customs and import duties and flexible labour laws, among other benefits.
Source: IANS
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