State seeks central funds for Lucknow-Agra e-way

The project was promised by the Samajwadi Party in its election manifesto before the 2012 Assembly elections for faster connectivity of Lucknow to Delhi. It is being planned as an extension of the existing Yamuna Expressway project connecting Greater NOIDA to Agra.

The estimated cost of the project is around Rs 9,100 crore and the UP government has already floated “Request for Qualification” document,seeking proposals from interested private players to develop the project on public-private partnership model.

Sources said during the pre-bid meeting,private players had asked the state government if the project would be given any “equity support” from the state or the central government.

The state government told them that they “envisage” a viability gap funding model for the project under which a maximum of 20 per cent of the cost might be given by the Centre and another 20 per cent by the state government. However,the state government cannot commit VGF to the developers till it gets a formal approval from the Centre. The last date for submission of the bid document is July 15 and the state government hopes the Centre will decide on funding by then.

“The response from the ministry has been positive so far. The proposal would be scrutinised by the expert committee”,said a state government officer.

According to Union government guidelines,the total viability gap funding “shall not exceed 20 per cent of the total project cost”. Viability gap funding is generally given “ in the form of a capital grant at the stage of project construction”.

Among road projects which have already got Centre’s approval for viability gap funding in the state include six roads of Uttar Pradesh State Highway Authority as well as upgradation projects of national highway,including four-laning of the Lucknow-Rae Bareli and the Lucknow-Sultanpur roads.