The Hindu : Karnataka / Bangalore News : GIC suggests self-imposed penalty for delay in work

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Saturday, Sep 01, 2007
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Karnataka

Karnataka - Bangalore

GIC suggests self-imposed penalty for delay in work

Staff Reporter

It has undertaken to pay Rs. 3 lakh for each day of delay

BANGALORE: The Global Infrastructure Consortium (GIC) that has offered to implement the Bangalore-Mysore Infrastructure Corridor Project (BMICP) has proposed introduction of monorail and suggested self-imposed penalty for delay in execution of project.

Besides, the GIC has offered a higher price for the lease of government land than what has been incorporated in the framework agreement between the State Government and Nandi Infrastructure Corridor Enterprises (NICE).

The proposals made to the Public Works Department on July 6 2007 are as follows.

Self-imposed penalty: A self-imposed penalty for any delay in the execution of the project has been proposed. Promising financial closure within 18 months from the date of all agreements being signed and all required approvals received from authorities, the consortium has undertaken to pay a penalty of Rs. 3 lakh for each day of delay. It has also promised to complete the entire project within seven years from the date of the financial closure, and has proposed a penalty of Rs. 5 lakh for each day of delay.

Extent of land: The consortium has also sought 500 acres less than what NICE wants for the road project. While the NICE has sought 6,999 acres of land for completion of 9.1 km of link road, 41 km of peripheral road with interchanges and 111 km of expressway between Bangalore and Mysore with ancillary and wayside amenities, the consortium has claimed it could complete the same in 6,499 acres.

Lease of land: Under the present agreement, government land has been leased at Rs. 10 an acre annually while the consortium has offered to pay Rs. 1,180 an acre annually. It has offered to buy the land at a price equal to the price of the guideline value as provided for in the framework agreement along with 120 per cent premium within five years from the date of the financial closure.

Monorail: Though is no provision for a monorail under the existing agreement, the consortium has proposed to develop monorail, on the 41 km stretch peripheral road that is estimated to cost around Rs. 4,200 crore. It has also proposed to develop a four-lane concrete road from the beginning and convert it into a six-lane road after five years even as the NICE is laying a four-lane bitumen road that would be converted to a six-lane concrete road after six years.

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