The Hindu Business Line : Manmohan promises hike in infrastructure investment — Lays foundation stone for ring road project in Hyderabad

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Manmohan promises hike in infrastructure investment — Lays foundation stone for ring road project in Hyderabad

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The Prime Minister, Dr Manmohan Singh, receiving a memento showing the logo of the new Outer Ring Road Project (Phase 1) from the Andhra Pradesh Chief Minister, Dr Y. S. Rajasekhara Reddy, after laying the foundation at Shamshabad in Ranga Reddy District, on the outskirts of Hyderabad on Tuesday. At right is the Andhra Pradesh Governor, Mr Sushil Kumar Shinde . - P.V. Sivakumar

Hyderabad , Jan. 3

THE Prime Minister, Dr Manmohan Singh, has said the year 2006 will be marked by a substantial hike in investments in every sector, especially in infrastructure development.

During 2005, the country achieved progress in several fields and the economy grew at a healthy rate of 8 per cent. This should spur us into investing more into roads, houses, industries, schools and hospitals, which, in turn, would generate employment and increase earnings of people, he said.

Laying the foundation stone for the proposed Rs 3,000-crore Outer Ring Road (ORR) project near Shamshabad on the outskirts of Hyderabad, Dr Singh said that achieving an accelerated growth in industry and a special thrust on agriculture would be the priorities for the UPA Government this year.

Dr Singh said that in the next seven years, the Government plans to spend Rs 1,70,000 crore on roads so that most parts of the country are connected. He pointed out that while 2,500-km length roads were laid during 2000-01, in 2005, a total of 6,000 km were laid.

Through the Bharat Nirman Yojana and the Jawaharlal Nehru Urban Renewal programme, the Government wants to achieve overall development in both urban and rural areas. Also, if we can sustain the 8 per cent growth rate in the next 8-10 years, we would be able to control poverty, disease and hunger, Dr Singh said.

Referring to the Andhra Pradesh Chief Minister's request, he said the Government would provide maximum help for the State's initiatives in infrastructure development. If necessary, the validity gap fund mechanism would be utilised and funds would be sourced from the special purpose vehicle for the ORR.

The Union Minister for Urban Development, Mr S. Jaipal Reddy, asked States to prepare reform-based development plans for urban projects. "In addition to the Rs 50,000-crore mobilisation planned in the next six years, we expect States to provide matching funds," he said.

The Chief Minister, Dr Y. S. Rajasekhara Reddy, said the Rs 3,000-crore ORR project will have eight lanes with full access control features and run for 160 km.

The Prime Minister laid the foundation for the Rs 500-crore first phase initiative on Tuesday. Work will begin in March and will be completed in 2008. The project near the Hyderabad International Airport is being executive under the public-private-partnership model. Japanese, UAE and Malaysian companies have evinced an interest in funding it.

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