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1.0 Introduction
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Maharashrta State
is one of the leading Industrial states in the country. Mumbai,
the capital of Maharashatra is known as the commercial capital
of India. The state has also achived remarkable progress in
the Agriculture and Fisheries Sector. The traffic intensity
on roads in the State has increased remarkably due to industrial
growth in the other commercial sectors. The Government of Maharashtra
builds roads and bridges in the state and facilitate public
communication. The Public Works Department in Government of
Maharashtra undertakes construction of roads and bridges in
the state, including improvements and repairs to the existing
roads with 3000km of major district roads. |
Improvements. maintainance, repairs
of roads other than National Highway are carried out by the state
Government form the funds received from the Central Government.
Public Works Department is responsible for their maintenance, repairs
and improvement.Besides these, the State has other district roads
and village roads which are looked after through Zilla Parishad
and their maintenance,repairs, improvements and new construction
are done either by the Public Works Department itself or through
Zilla Parishad. A lot of funds are required
for carrying out works on those roads. Funds made avaliable to the
Public Works Department under plan and non-plan schemes undertaken
through the State Budget are very meagre compared with the requirments.
This causes the road development schemes to lag behind the target.
The gap between the achivements and the targets is increasing year
by year.
For implimenting state road development programme in a systamatic
manner, 1981-2001 Road Development Plan has been prepared. This
plan includes widening and black topping of State highways and major
district roads and also black topping of other road. For implementing
this development plan approximately Rs. 26000 Crores are required.
With a provision of Rs. 400 Crores every year, this plan can be
complated only after 65 years. Improvements to State Highways and
National Highways, construction of bridges over them and construction
of new expressways cannot be implimented due to shortage of funds
avaliable with the Government. The Government of Maharashtra has,
therefore, decided to impliment some of the important road projects
through Private Sector Participation.
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2.0 Road Development
Projects Proposed Under Privatisation
2.1 Following projects shall be genrally taken
through Private Sector participation :
1) Construction of new roads.
2) Improvements, widening and Strengthening of
existing roads.
3) Baypasses outside towns.
4) Repairs to Major bridges.
5) Construction of bridges.
6) Widening of bridges.
7) Construction of flyovers.
8) Construction of expressways.
9) Construction of Railway over bridge.
10) Construction of tunnels.
While selecting the projects priority will be given to the works
included in road development plan and efforts will be made to maintain
regional balance.
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3.0 Procedure
for taking up Road Project through Private Sector Participation
While implimenting a road project through Private Sector
Participation, it is assumed that the Enterpreneur shall invest
the cost of the project and that will be allowed to revover his
investment allongwith reasonable profit through toll collection
and other means provided by the Government. Following Procedure
is adopted while taking up the project through Private Sector Participation.
3.1 Before taking up the project through Private
Sector Participation its feasibility is ascertained. Generally a
project which can be return beyond 20%, shall be deemed to be feasible
for taking up through Private Sector Participation. For major and
complicated projects, a consultant shall be appointed to carry out
feasibility studies. For other projects feasibility will be checked
in-hours by the Public Works Department. According to the feasibility
report and the recommendation therein, the project shall be prepared
and taken up for implementation.
3.2 Once the feasibility of any project to be
taken up with Private Sector Participation is established, fairly
detailed plans and estimates and detalls of State Government participation
and/or additional facilities to be given to the Enterpreneurs will
be worked out and detailed proposal will be prepared and approval
of the Government will be obtained for the same. for projects costing
more than Rs. 50 Crores, approval of State Cabinet committee will
be necessary.
3.3 Before taking up any project through Private
Sector Partiicpation prior permission of same Departments of the
state as well as Central Government has to be obtained. For example,
Project costing more than Rs. 50. Crores require clearance from
Central Enviromental Department. For acquiring forest lands, permission
has to be obtained form the Forest Department. These and such others
permissions will be obtained by the Government of Maharashtra.
3.4 The land required for the project will be
acquired by the Government of Maharashtra at its cost. After marking
the project alignment, lands will be acquired after giving proper
compensation to the concerned persons or Organisations, or the land
will be obtained from other Government Departments. All the required
land will be taken over by Public Works Department and there-after
for the purpose of the project, it will be handed to the Enterpreneur
on lease.
3.5 For implimenting medium or large projects
through private sector participation, the intending Enterpreneurs
have to be prequalified considering their financial, enigineering
and other abilities. Fot this, after deciding the criteria for prequalification,
public tenders will be invited form the intending Enterprenurs for
prequalification. The Enterprenuers satisfying the criteria will
be prequalified enterprenurs. While inviting these offers the terms
and conditions of the agreement, the subsidy offered by the Government
crietria for selection of the best possible offer will be laid down
in the bid documents.
3.6 For smaller projects, insted of prequalification,
the fiancial bids will be directly invited and the Enterprenurs
stisfying the criteria will be post qualified. There after the technical
bids will be considered and finally their financial bids will be
opened the offers received from the Enterprenurs will be scrutinized,
if necessare by a high level committee appointed by the Government
and the best acceptable tenders, from
among the technically acceptable proposals, will be selected. All
this process will be absolutely transperent.
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4. Policy
decision taken by the Government for facilitating Private Sector
Participation in Road Development Project.
To enable it to take
up road development projects through Provate Sector Participation
the Government of Maharashtra has taken some policy decision. These
include procedure for taking up such works and concessions to be
offered to the Enterprenurs.
4.1 The following alternatives may be considered
while taking up road development projects through private sector
participation.
a) The Enterprenurs to bear the entire cost of
the project and recover the same through toll fees levied after
the project is completed.
b) To make some of these project feasible the
Government may have to participate by sharing up to 40% of the project
cost in some cases. The Enterprenurs can recover his investment
will be recovered later by levy tolls.
c) The Enterpreneurs to complate the project
in Phases and toll to be recovered after completion of each phase.
4.2 To make the road development projects financially
feasible through private sevtor participation the Government has
to decided to give some concessions and to make available some other
sorces of income to Enterprenures. Some of the sources of income
to be made available to the Enterprenurs apart from the tolls, will
be as below :
a) To permit display of advertisement by the
road side approved locatio and to permit the Entreprenurs to
genrate income from the same.
b) Permission to erect Petrol Pumps, Hotels,
Motels, etc. at approved locations by the road side.
c) Permission to retain income genrated from
tree plantation to be permitted by the road side.
d) Income generated from the commercial exploitation
of land aquired by the Government as per the requirements at proper
locations and to be given to the Entreprenurs on long lease.
e) To give on nominal lease rent, the land required
for the project after acquiring the same at the cost of Government,
alongwith the quarries and connecting roads and the Entreprenures
to be permitted to use them for constructing the project.
f) To make suitable provisions in the bid documents
for covering risk beyond their control in relation to the investment
made by the
Entreprenurs.
4.3 A special cell has been formed in Mantralaya
for projects to look after the works to be done in Mantralaya for
projects to be taken up through Private Sevtor Participation.
4.4 To enable the Entrepreneurs to collect and
to retain the toll fees, the Bombay Motor Vehical Tax Act 1958 has
been suitably amended.
4.5 The decision laying down the policy of the
Government in respect of works to be taken up under Private Sector
Participation has been issued on 19th July 1996 ( a translation
is appended).
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5. Establishment
of Corporation
To execute certain projects through private sector participation the
"Maharashtra Road Development Corporation (Limited)" has
been established. The work to be taken up through private Sector Participation
will be implimented through this corporation.
The principle objectives of the Corporation are
as belows:
a) To impliment through private sector prticipation
development programme for bridges, road and other related facilities.
b) To generate funds through private sector participation
for development of roads and bridges.
c) To commercially exploit Government lands in
possession of the Public Works Department.
d) Other objectives- To function as a consultant
or to appoint consultant for preparing plans and estimates of the
projects, feasibility reports, environmentals impact studies, surveys,
supervision, etc. and to obtain equity financial participation from
different financial institutions or other carporations, etc.
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6 Present
Status of Implimentation of Road Development Projects through Private
Sector Participation
The Public Works Department has prepared a preliminary list of same
important road development projects which could be taken up through
private sector participation based on the report received from the
field officers. More than 200 works located all over Maharashtra
have been included in this list and after ascertaining their feasibility,
those works will be taken up in a phased manner.
It is essential to obtain the permission from the Ministry of Surface
Transport of the Central Government for taking up the works on National
Highways include in the above list have been processed for the approval
of the Ministry of Surface Transport. At present the work of improvements
to the Thane-Bhivandi Baypass on National Highway No. 4 has been
partly completed through private sector participation and
recently a decision to undertake the work of construction of bridge
across river Patalganga near Kharpada on N.H. 17 has been taken.
Policy on implmentation on Road & Bridge Projcets through Private
sector participation
Government of Maharashtra
Public Works Departmant
G.R.No.PSP1095/CR.11/R.8
Mantralaya, Mumbai - 400 032
Date:19th July, 1996
Ref : 1) Government of Maharashtra Planning Department G.R. No1089/CR22./Planning
2.
Dt. 30.6.89
2)Government of Maharashtra Planning Department G.R. No. PSP1089/CR.22a/Planning-2
Dt. 30.6.89
Background:
In the opinion of the Government the road and bridge projects which
would be financially viable and for which financial participation
could be obtain from financial institutaion or from other sorces,
so also maintainance of such roads and bridges, can be justifibly
handed over for a limited period to the private sector. Accordingly
in selected developmental areas the Government was considering obtaining
private sector participation on proper terms and conditions. For
facilitating this the Government have taken certain decision in
the present resoluation.
Government Resolutions::
Considering the above background, and after giving careful thought
to implimantion of road development projects through private sector
participation, the Government have taken the following decision
for making Such Projects financially feasible after considering
and amending wherever necessary the proposal made by the Public
Works Department.
1) In respect of roads and bridges the following
types of works may be taken up through private sector participation.
a) Works of new roads
b) Works of Widening, Strengthing & Improvements
to Existing works
c) Works of diversion road outside town
d) Works of new bridges
e) Works of Major repairs to bridges
f) Works of widening of Major bridges
g) Works of road/rail over bridges
h) Works of flyovers
i) Works of tunnels
2) While selecting the works to be undertaken
thorough private sector participation the works identified in 1981-2001.
Road Development Plan should as far as possible be selected. The
priority should be decided on the principle of traffic intensity,
need for development and higher financial viability.
3) To enable these road development projects to
be financially profitable and to induce the Entreprenure to take
them up the following consessions may be given according to the
need and for this the existing laws may be suitably amanded.
a) Within the framework of rule to give permission
to display advertisement by road side and permit the Entrepreneurs
to retain income generated form the same during the concession period.
b) Permission to commission petrol pumps, hotels,
motels, etc. by the road side under the relevent rules and regulations.
c) To permit development tree plantation by the
road side and to permit retaining the income generated from the
same on contract basis.
d) To acquire at proper location as per requirments
land by the side of the projects and to hand over same to the Entrepreneur
on long leases for commercial exploitation in the form of housing
complexes etc. and to permit generation and retantion of the income
from the same.
e) To handover on nominal lease rent the land
aquired by the Government at its cost, for the projects as
well as for the quarries and
connecting roads and to permit their use
for the construction of the projects.
f) To make suitable provision in the tender documents
for covering the ill-effects on the investment due to reasons beyond
tje control of the
Entrepernures.
g) To obtain form the Government side necessary
environmental and other No Objection Certificate by employing Consultants,
if necessary.
4) While taking up the projects thorugh private
sector participation the following alternatives should be considered
while deciding according to the feasibiliy, the investment to be
made by the Enterprenurs:
i) The Enterprenures to meet the entire project
cost and to recover the same through levy of tolls.
ii) The Government to participate in the investment
project cost.
iii) To complate tje project in phased manner
and to permit levy of tolls after the complition of the subsequent
phases.
5) As per the financial analysis a return of minimum
20% should be genrated on the investment made by the Entreprenurs.
6) The power to decide whether the project can
be taken up through private sector participation will be as follows:
a) For works/projects with estimated cost less
than Rs. 50 Crores, the Public Works Department may takes decision
and the tender for such
works should be approved by the Public Works
Department on consultation with the Finance Department and after
approval of Hon.
Minister,Public Works Department.
b) For works with estimated cost more than Rs.
50 Crores, the proposal for taking up such works through private
sector pariticipation should
be placed before the Cabinet for approval. The
tender for such works should also be placed before the Caninet
for approval.
7) For works to be undertaken though private sector
participation the tender publicity in newspapers and the period
of publicity should be as follows:
| 1) District
level |
1 Newspaper |
| 2) State
level(Marathi) |
2 Newspaper |
| 3) State
level(English) |
2 Newspaper |
| 4) National
level (for Works costing > Rs. 25 Crores.)
|
1 Newspaper |
| 5) International
level(for workscosting > Rs. 25 Crores.) |
1 Newspaper
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This publicity should be done through
information and Public Relation Departments and for this guiding
principles should be issued by the Public Works Department.
Tender publicity period should, in general, be as follows
| Cost
of Works (Rs. in crores) |
Period
(Period from the date of publication to the receipt
of the tender) |
| Up to
Rs. 25 Crores |
4 Months |
| Up to
Rs. 25 to 50 Crores |
5 Months |
| Above
50 Crores |
6 Months |
8) In respect of the projects to be taken up through
private sector participation the Public Works Department administrative
approval to the cost covering expenditure to be made by the Government
in respect of the project. A list of such works to be taken up through
private sector pariticipation should be printed in the Budget form
time to time.
9) The works of the roads and bridges taken up
through the private sector patrticipation by the Public Works Department
will require acquisition on large scale. Till the received policy
in this respect is decided, acquiring lands for such works, the
land acquisition should be done on the basis of Government of Maharashtra
Revenue and Forest Department G.R.No LQN 1986/CR.3628/A-2 dated
31/10/94 and urgency clause should be made applicable.
10) The Public Works Department cannot supervise
on a day to day basis roads and bridge works undertaken through
private sector participation like other Budgeted works. The Public
Works Department will in gereral monitor such works. However day
to day supervision, inspection, quality control, progress monitoring,
reputed private persons or institutions will have to be appointed
as supervision consultants.
Simalarly before undertaking projects through private sector participation
plans and estimates feasibility studies, etc. may be done if necessary,
by the Public Works Department through consultants. Full power to
accept consultancy tender up to Rs. 1Crore should be approved by
the Public Works Department in consultation with the Finance Department.
11) Considering the nature of the project to be
undertaken through private sector participation the Public Works
Department may purchases necessary modern and technical equipments
(e.g. levelling and survey equipments, traffic counters, traffic
analysers, vehicle and axle weighting machines, electronic calculators,
computers, fax machines modems,E-mail, etc.) as per the prsent procedure
of Finance Department.
12) In order that the project undertaken through
private sector participation become a success co-operation from
all related Departments is necessary. (e.g. land aquisition for
the project, forest and enviormental clearance, electricity and
water supply, quarries, problem which crop up under industries act,etc.).
On this background, all the Government Departments should calculate
a feeling that the projects to be taken up through priavte sector
participation are not the responsiablity of the Public Works Departments
alone, but are Government projects jointly of all the different
departments. The concerned Department, therefore should expeditiously
clear the cases related to those projects to be undertaken through
private sector participation. This resoluation is issued with the
concurrence of the Planning Department and the Finance Department,
obtained under U.O.R. No 307/Expenditure-6 dated 17/7/96
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