The Hindu Business Line : AP plans another infrastructure investment corridor

According to official sources, the proposed corridor will cover a distance of approximately 290 km and is being developed as the Hyderabad Krishna Deccan Corridor (HKD-IIC).

“The corridor will be developed under the Swiss Challenge method with a private component,” officials added.

The Swiss Challenge System is a bidding process to help private sector initiative in core sector projects. It is an offer made by the original proponent to the Government ensuring his process to be best (in terms of effectiveness including both the factors cost and time) by his initiative as a result of his own innovative approach or on the demand of the Government to perform certain task.

The system, like the bonus system, further allows third parties to make better offers for the project during a designated period with the simple objective to discourage frivolous project or to avoid exaggerated project development costs.

It is also learnt that Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, has asked the Infrastructure Corporation of Andhra Pradesh to go ahead with the project.

“Maytas Infra has been given the responsibility to do a feasibility study on the proposed corridor and is expected to submit the report in the next one and half months,” the official said.

He added that the Government will only provide basic facilities required such as road and rail connectivity, water power, etc and all other things will be looked after by the developer.

The official, however, said that it was too early to quantify the investments that are likely but said that since it covers a huge distance it could run into a few thousand crores. He added that the proposed corridor will cover all the major regions between the two places.

This is the third infrastructure corridor that has been proposed.

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