labels: roads
India''s first private road project in more trouble news
03 September 2007

The Bangalore-Mysore Infrastructure Corridor, the country''s first private road project has run into more trouble. After the Supreme Court directed the Karnataka government to allow construction, the state government has backed off from releasing more land for the project, reports CNBC TV-18.

The Bangalore-Mysore Infrastructure Corridor is fast going nowhere. On Thursday, the Karnataka government decided not to give any more land to the Nandi Infrastructure Corrdidor Enterprise (NICE), the company in charge of the country''s first private road project.

Basavaraj Horatti, cabinet spokesperson, Karnataka state government, said, "The government has come to a conclusion that the NICE is deceiving the government. It''s violating the norms."

The Karnataka cabinet took the decision after the US-based Global Infrastructure Consortium offered to build the same road using lesser land. But NICE is now crying foul. Its managing director Ashok Kheny, now in the US, said in an e-mail response, "The state government''s action is in direct violation of the Honourable High Court and Supreme Court''s orders to both NICE and the state government of Karnataka, to henceforth implement the project in letter and spirit as per the Framework Agreement."

The state government''s move could mean that NICE will not get land at 10 major intersections and that''s a big setback. The cabinet''s proposal will be placed before the Supreme Court for approval before it is implemented.

"We''ll put before the court bench all the information about NICE. In the interest of Karnataka, in the interest of government, of the public, whatever Supreme Court directs, we''ll act according to that," said Horatti.

It''s just a stretch of 114 kms, but the Bangalore-Mysore expressway is nowhere near completion. And now, 13 years after work began on the project, the Karnataka government wants to lock horns again with the private promoters of the project. This, after more than 300 cases have been settled in various courts.

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India''s first private road project in more trouble