The Sivaramakrishnan Committee Report on the Indicative Andhra Pradesh Economic Development Package for the new State capital has estimated that only a quarter of the Rs 4.5 lakh crore required is expected from the Centre by 2022. The rest is expected to be met through Public Private Partnership, according to a senior government official.
“Practically speaking, there may not be a landslide fund-flow from the Centre. Besides funding for certain iconic infrastructure, the Centre may pump in viability gap funding for most of the PPP projects in the State. And the funding may extend till the end of 13 plan,” the official said.
A bulk of the investment for the new capital of Andhra Pradesh is estimated to go into the IT Investment Region & Electronic Manufacturing Clusters and Vizag-Chennai industrial Corridor.
These two major projects cost about Rs 3 lakh crore and are expected to be taken up in PPP mode, the Sivaramakrishnan Committee Report on the Indicative Andhra Pradesh Economic Development Package has said.
The contribution from the Centre is likely for building a major port at Dugarajapatnam, roads, airports, metro-rail, steel plant and a green-field crude oil refinery, LNG terminal, minor ports and educational institutions. “The PPP model is no doubt good but people will have to pay for most of the utilities which may be burdensome,” said an industry representative who did not wish to be identified.
