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'BOT projects should get world bank-aided project status'



— H.S. Kohli, Chairman, KMP Expressways Ltd

KMP Expressway Ltd is developing the 136-km Kundali-Manesar-Palwal expressway in Haryana, which is amongst India's  longest toll expressway. H.S. Kohli speaks to Venugopal Pillai on challenges faced by infrastructure developers.

As a leading private infrastructure developer, what would be your most important recommendations to government agencies to expedite large roadway projects?
The government does realize the importance of timely completion of large infrastructure projects. Hence, to facilitate timely completion of such projects, the Planning Commission has released a new model concession agreement. However, the issue of utmost importance is complete handing over of encumbrance free site for the project. Just as developers face penalty for delay in execution, a rational approach should be devised which can compensate the developer in case project is hindered due to delay in handing over of the site.
Secondly, large infrastructure projects should be seen as means to increase the gross productivity of the country and they should be given special incentives in terms of cheaper loans from financial institutions.
Also, BOT project should be given the same status as World Bank-aided project where excise exemption is available. This will decrease the cost of the project and consequently will lead to lesser concession periods thus directly benefiting the end user.
Recent guidelines have made R&R compulsory before land acquisition starts for state-level road projects. What is your reaction?
We are of the view that development activities are ultimately in national interest. However, if rehabilitation and resettlement activity has to be undertaken during the construction phase then it should take into consideration the interests of all the parties involved. The new R&R guidelines are a welcome step towards achieving this.
But, we have to be cautions and ensure that R&R issues do not become the stumbling block for the development. For instance, China has effectively undertaken large scale resettlement for the execution of Three Gorges Dam project. Hence, we should constantly try to seek a balance between development and covenant RR activities.
Talking about the KMP Expressway, what socio-economic impact do you see for Haryana?
KMP will help in spatial integration of urban centers in the Haryana sub-region of National Capital Region and thus provide smooth and quick transportation of surplus food grains, milk products, fruits, and vegetables from the states of Haryana, Punjab, Himachal Pradesh and Jammu & Kashmir to other parts of the country.
Government of Haryana has already declared area around KMP as growth corridor and large scale industrial and township development is planned along the expressway. All the major SEZs approved for Haryana are coming along KMP. Furthermore, the existing industries like Maruti Udyog, etc. are also planning development along the expressway. This expressway will open up new areas adjoining Delhi borders as future corridors of development. For the lesser developed southern districts of Haryana this expressway will be instrumental in opening new avenues of growth.
What is the status of land acquisition for the 136-km expressway?
The total land required for the project is 3,300 acres and almost complete land has been handed over to us. Only a few small pockets of land meant for toll plazas and interchanges with national highways is yet to be handed over, besides which the complete land is available. Even the work on transfer of remaining land is in process and we expect these small pockets to be handed over to us soon.
What is the status on the earthwork along the alignment?
We have already initiated earthwork on more than 120 km stretch. As on date close to 48 km of sub-grade top is ready and we are in a position to enter the wet mix macadam (WMM) phase.
What about the auxiliary structures on the expressway?
If all small and big structures are taken into consideration, then there are close to 500 structures along the Expressway. These structures include cross drainage works like pipe culverts and box culverts, agriculture vehicle underpass, pedestrian crossing, cattle crossing and single span under pass. Further we will have close to 60 bigger structures like irrigation structures, railway over bridge, multi span under pass, over pass and grade separators. Work on most of these structures has started and foundation work on nine structures has already been completed. We have already completed more than 100 piles.
When will the biggest phase of bituminous work start?
Theoretically we can start bituminous work in certain sections immediately. However, for a project of 135.65 km it is not feasible to take up bituminous work in bits and pieces. We are working as per our project plan and will take up the bituminous work that will synchronise with the completion of structures/ approaches roads from the existing roads.
What major activities are currently under way on the project?
Work on the highway section and structures are in progress. In highway section the usual work like earthwork, GSB laying and WMM is under way. For the structures, piling work, well foundation, erection of casting yard, etc are in progress.
Out of the total project cost of Rs 1,915 crore, how much expenditure has been incurred so far? Do you foresee cost overruns?
We have already spent more than to 25 per cent of the total project cost. The expenditure on the project will significantly increase once bituminous work starts. Our vast experience in building over


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