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INFRASTRUCTURE







                                                                                           expected development period of
                                                                                           10 years would be approx_ INR
                                                                                           82Bn
                                                                                           Project Financing
                                                                                           Framework

                                                                                             A project of such significant
                                                                                           investment will require skillful
                                                                                           financial engineering to help cost
                                                                                           effective resource mobilization
                                                                                           and financial sustainability. The
                                                                                           proposed financing strategy
                                                                                           aims at mobilizing both public
                                                                                           and private resources using cost
                                                                                           effective financing instruments
                                                                                           and use appropriate value capture
                                                                                           framework to finance the project
                                Comparative Advantage        Ponmudi in the Capital region.   cost
                                of Project Area                Further the several reputed   Capex for the transit corridor

                                  The location in the southern   higher education institutions   has been agreed in principle
                                                                                           by MoRTH/NHAI to be funded
                                tip of India serves to give it   in the capital region, including   under the Bharatmala scheme of
                                considerable advantage in    IISER, would help offer the much   Government of India and value
                                marine logistics being closest to   needed knowledge networks   capture financing shall be from a
                                the  international  sea  route  and   required for a high tech economic   mix of user fee and infrastructure
                                the upcoming ICTT at Vizhinjam   city.                     development charges / property
                                is expected to boost the trade   Presence of many good     tax revenues for the access
                                related economic activities.   quality health care institutions   controlled corridor.
                                  The Project area has lower   and multiple cultural institutions
                                                                                             The land cost is expected to be
                                population density thus offering   in capital region would   financed through an innovative
                                adequate vacant land for     help compliment the social    scheme of Land Bonds which
                                development activities. It has a   infrastructure to achieve the   will aim to finance the cost of
                                fair degree of social infrastructure   desired levels of quality of life.  acquisition by capturing the value
                                thus reasonably lowering the   Project Outlay              enhancement in real estate and
                                development cost. The area also
                                has less vulnerability to ecological   The project envisages a   additional economic activities
                                systems. Thus the project will   capital expense of approx Rs 20   generated by the project.
                                have higher benefit –cost ratio   billion for construction of the   Land pooling approach will
                                (BCR).                       transit corridor. In addition, the   be actively promoted to help
                                  Proximity of the project area   projected cost of land (about   interested land owners become
                                to the capital city helps in easier   600 hectares) for Right of Way   entrepreneurs by making land
                                administrative facilitation which is   (60 meter for road section and   availability to investors/developers
                                crucial for the success factor for   10 meter for green cover area)   to engage and implement joint-
                                project.                     of the transit corridor would be   development projects.
                                                             Rs 30 billion. The cost of land
                                  Apart from proximity to                                  Strategy for
                                upcoming  ICTT,  Vizhinjam,  the   (about 600 hectares) for multiple   Infrastructure
                                project location can derive benefit   development zones identified   Development in SIR
                                from its proximity to the aero-  would be Rs 20 billion and the
                                space center of VSSC, IT Hub   cost of public infrastructure in the   Role of Development
                                of Technopark, and around 40   SIR would be Rs 12 billion.   Partners
                                major tourist locations including   Thus the expected total capital   Government of Kerala is keen to
                                Kovalam, Varkkala, Poovar and   outlay for the project over the   partner with Development Finance




              www.trafficinfratech-com-500653.hostingersite.com                                                             April - May ’19 / TrafficInfraTech  41
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