Vizag, 4 other cities lead the way under smart cities mission

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Visakhapatnam along with four other cities — Pune, Bhubaneshwar, Surat and Ahmedabad — is leading the progress made under the first round of the government’s flagship scheme.

Mission Director (Smart Cities) Sameer Sharma told BusinessLine, “We have reviewed the progress of Visakhapatnam under the smart cities mission with the consultants and CEO of the special purpose vehicle (SPV) formed. Under the project, development of footpaths will go for bidding by October 31; water supply for the city by September 30, sewerage also by September 30, etc.”

Visakhapatnam had ranked eighth in the first round of the smart cities challenge.

On the overall progress made, he added that all 20 cities in the first round have already formed SPVs and most have readied Production Management Contracts ( PMCs) also. “Projects across all these cities are expected to kick-start by December,” Sharma said at the sidelines of the 3rd BRICS Urbanisation Forum here.

In January this year, 20 winning cities which were announced under the first round covered only 12 States and Union Territories. The government had then decided to conduct a ‘fast-track competition’ to offer an opportunity to the highest ranked city in each of the unrepresented 23 States and UTs. In May this year, the Ministry of Urban Development had announced 13 more winners of the smart city tag under the fast-track round.

On the progress under this round, Sharma said, “Out of the 13 selected in the fast-track round, six cities, including Panaji, Chandigarh, Port Blair, Lucknow, have formed SPVs and remaining seven are in the last stage of formation of SPV and are expected to do so by the end of this month.”

Moreover, on Monday, the Centre will announce 27 more cities which will bag the smart city tag.

 

Funding plans

Meanwhile, the government is also pursuing a loan of $1 billion from Asian Development Bank and another $500 million from the World Bank to provide funds to the city SPVs, apart from Japanese International Cooperation Agency ($500 million), BRICS Bank ($ 500 million per city), AFD (€100-200 million).

“The funds from World Bank are expected to flow in 6 months. It will be in phases,” Sharma added.

Source :http://www.thehindubusinessline.com/todays-paper/tp-news/vizag-4-other-cities-lead-the-way-under-smart-cities-mission/article9108718.ece

Tamil Nadu to get 4th major port

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The Cabinet on Tuesday approved the setting up of a major port at Enayam near Colachel in Tamil Nadu. This would be the country’s 13th major port.

Colachel is about 50 km north-west of Kanyakumari.

India has 12 major ports — Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia). These handle approximately 61 per cent of the country’s cargo.

A special purpose vehicle (SPV) would be formed for the development of Colachel port, with an initial equity investment from the three existing major ports in Tamil Nadu — V O Chidambaranar Port Trust, Chennai Port Trust, and Kamarajar Port. The SPV would develop the port infrastructure, including dredging and reclamation, construction of breakwater and ensuring connectivity links, a statement said.

Fishermen in the coastal villages of Tamil Nadu have been opposing construction of this port, fearing sea erosion and loss of livelihood.

India has few ports with sufficient draft to match global cargo handling efficiencies. All of India’s trans-shipment (transfer of shipment from one carrier to another during transit) traffic is handled in Colombo, Singapore and other international ports. Indian port industry loses up to Rs 1,500 crore of revenues each year, the official statement said.

This major port at Enayam will act as a major gateway container port for Indian cargo now trans-shipped outside the country. It would also reduce the logistics cost for exporters and importers in south India, who depend on trans-shipment in Colombo or other ports, incurring additional port handling charges.

Minister of Shipping Nitin Gadkari had in April said the government had plans to add eight major ports in the country — including at Wadhawan in Maharashtra, Sagar in West Bengal and Colachel in Tamil Nadu.

 

Source: http://www.business-standard.com/article/economy-policy/tamil-nadu-to-get-4th-major-port-116070501191_1.html