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INFRASTRUCTURE

plans and procurement of basic ii. Vehicle Operating Time • Reduce travel time, kms, and
regulatory approvals from the Benefits congestion.
government authorities. iii. Access and encouragement In the long run, the OAGC Project
To meet the land cost, the of Public Transport. will:
government may authorize iv. Benefits from reduction in • Spur economic development;
issue of Land Bonds which can Road Accidents
be managed by an existing v. Multiplier Benefits from Users • Create about 3.5 lakh to 5.5
institution of the state such as of the OAGC lakh jobs;
KFC/KSIDC. • Increase economic output of
vi. Benefits from Private
Capital Expansion & Investments along the OAGC Kerala by Rs. 16,527Cr;
Financial Closure of vii. Employment Generation & • Connect labour to
SPVs: Additional Economic Benefits employment opportunities;

Completing the riskier initial from Implementation of the • Support the region’s growing
planning phase by GoK, the project OAGC Project population;
would be able to offer sufficiently In the short run (2022-2026), • Lower automobile pollution
higher risk-reward ratio to attract the OAGC Project will: in the area; and
private investment in execution • Directly employ about 9,400
phase. Accordingly GoK may then formal construction workers; • Demonstrate a willingness of
dilute its equity up to a minimum the government to partner
of 26%, by infusion of institutional • Stimulate about 76,357 with the private sector.
and private capital into those SPVs additional informal jobs in the The project puts OAGC
and achieve financial closure with region; residents to work in high-end jobs
a mix of debt and central sector • The OAGC will lower the with good pay, spurs economic
funds (where available) as per the state’s unemployment rate development, and supports the
approved project financing plan directly by 0.18% (183 days outer region’s future population.
under each SPV. or more in a year) and by
0.76% (30 days or more in The enduring benefits of the
Expected Economic/ any economic activity in that OAGC outweigh its upfront costs.
Benefits: year) percentage points. The OAGC Project is expected
The benefits associated to • Add about Rs. 5,310Cr to the to be completed within three
the society from a project like Economy of Kerala; years, i.e. you can drive on the
OAGC are: • Generate Rs. 264Cr per year Outer Area growth Corridor
i. Vehicle Operating Cost in the state and local tax of Thiruvananthapuram from
Benefits revenue; and January 1, 2023.

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