NEW DELHI: At a time when municipal bodies are facing huge funds crunch for infrastructure projects, Surat has come out with a model where the proposed outer ring road (ORR) around the industrial city would be self-financed by the project.
Moreover, it would generate additional revenue for the city. The Centre has now issued an advisory to states to identify such projects and follow this model for their own bypasses and ORRs.
Union urban development secretary Sudhir Krishna in a letter addressed to all principal secretaries in urban development departments in states has said that instructions should be issued to "all concerned authorities for identifying the possibilities of ring roads on the Surat City Ring Road model, getting a proper study done on various aspects of Ring Road development and Ring Roads in their cities for overall development of the city."
Under the model, Surat Municipal Corporation (SMC) and Surat Urban Development Authority (SUDA) have jointly come up with the model to generate about Rs 11,960 crore from the development of proposed road over five years. This will mean that these bodies would get the entire project cost of Rs 5,796 crore. The additional revenue can be used for projects such as high-speed transit system.
To execute the project, SUDA and SMC would set up a Special Purpose Vehicle (SPV) and will generate infrastructure fund by sale of FSI (floor space index) and commercial plots around the 66-km-long and 90 meter wide road.
The project envisages modern infrastructure for transport, mass rapid transport and dedicated provision of services such as water supply, sewerage, drainage and electricity.
As per the plan, 60% of the land acquired for this project would be returned to the land owners as final plot with all infrastructure in place. About 40% of the land will be acquired for development of infrastructure such as parks, playgrounds, public utilities, for sale of residential, commercial and industrial use.
Centre wants others to follow Surat’s self-financing model for road building
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Centre wants others to follow Surat’s self-financing model for road building
