The Hindu Business Line : Integrated check posts to be public funded projects

Taking into account the security concerns and that the private sector has not really operated in ICP on the international border, the initial project would be implemented with Government funds.

G. Srinivasan

New Delhi, Dec. 24 A high-level meeting of the Ministries of Commerce, External Affairs and Home Affairs has decided to seek the Union Cabinet’s approval for upgradation of 13 Land Customs Stations (LCS) into Integrated Check Posts (ICPs). It entailed an expenditure of Rs 853 crore spread over three years and would be public funded.

Official sources told Business Line that the meeting, attended by the External Affairs Minister, Mr Pranab Mukherjee, the Home Minister, Mr Shivraj Patil, the Minister of State for Commerce, Mr Jairam Ramesh, and the Foreign Secretary, Mr Shiv Shankar Menon, felt this upgradation would be crucial for boosting the country’s border trade.

2 phases

The sources said that following the in-principle approval of the Cabinet Committee on Security in November 2006 and based on the estimates made by RITES, it was decided to execute the projects in two phases. The first phase would cover Petrapole in West Bengal (India-Bangladesh) border, Moreh in Manipur (India-Myanmar), Raxaul in Bihar (India-Nepal) and Wagah in Punjab (India-Pakistan) border involving Rs 342 crore.

The remaining nine projects – six along India-Bangladesh border and three on Nepal border – would come in the second phase.

The sources said that originally the IL&FS was entrusted with bid process management and to help arrive at a suitable public-private partnership (PPP) model in which 15 companies including public sector Central Warehousing Corporation and Balmer Lawrie and Co and private companies such as Falcon Infrastructures Ltd, Ernakulum, and Uppal Group, Delhi, submitted their expression of intent (EoI) to the Ministry.

Subsequently, an interactive meeting chaired by the Secretary, Department of Border Management, was held in which representatives from 12 out of the15 bidding entities took part.

Security concerns

Although EoI evaluation has been completed by IL&FS, the sources said, the Ministry of Home Affairs has later decided that taking into account the security concerns and also considering the fact that the private sector has not really operated in ICP on the international border, the initial project would be implemented totally with Government funds.

The sources said that as expected, the maximum response was for Raxaul and Petrapole (mostly on build, operate and transfer basis) though a few were keen on Wagah as well as on BOT basis.

When contacted, Mr Jairam Ramesh confirmed that at the Monday meeting “it was decided to execute all the 13 ICPs as publicly funded projects instead of chasing the mirage of PPP”.