FINANCE HOME PAGE INVESTING PERSONAL FINANCE
    Market:       

Finance News

Monday September 24, 02:57 AM

Finally, Maharashtra decides to open irrigation to private sector

By Sanjay Jog

After mere talk for 11 long years, the Maharashtra government has finally moved in to seek private participation in the irrigation sector. The state-run Maharashtra Krishna Valley Development Corporation (MKVDC) has invited expression of interest from the private sector to complete the Nira Deoghar irrigation project in Krishna Valley on build-operate-transfer (BOT) basis.

The project envisages an investment of nearly Rs 900 crore. The developer/consortium is expected to hand the project back to the water resources department after the designated lease period.

The project comprises construction of dam, main canal, distribution system and four lift irrigation schemes on right bank canal. It is located in Bhor taluka of Pune district and MKVDC has already received environment clearance for it.

This initiative is crucial as the state government, in its presentation to Prime Minister Manmohan Singh during his Mumbai visit on August 31, had admitted that it would need Rs 40,000 crore to complete irrigation projects. Singh, in fact, had asked the government to increase its irrigation potential, which is way below the national average.

The developer/consortium would be able to recover investment from a slew of options that include levy of water charges for irrigation and domestic uses, fisheries development, tourism activities associated with the project. Besides, they can raise resources through avenues like contract farming through land-owners in the command area, as per government provisions.

Moreover, in a bid to make the project development attractive, the MKVDC notes that the developer/consortium can tap opportunities in the promotion of agro-based industries, export promotion in the command area. The total command area involved in the Nira Deoghar scheme is 43,000 hectares. The work of the dam is almost 95% done.

Ramraje Nimbalkar, minister for water resources, told FE,''This is a maiden initiative by the government to encourage private sector participation in the irrigation development. It will provide the necessary amenities."

Email this article to your friend -  View most popular


Questions or Comments?

Copyright © 2006 Indian Express Newspapers (Bombay) Ltd. All rights reserved throughout the world.