In a political resolution adopted in Kanpur on 30th March, 2008 at the two-day meet of the Uttar Pradesh state executive, Indian National Congress said, “The Ganga Expressway is another scam in the making for the way contracts were awarded to a few select.” The project has been awarded to Mayawati’s favourite Jaya Prakash Associates (JPAL), which had submitted the lowest bid at Rs 29,355 crore. The project will reduce the distance between Delhi and Ballia by 10 hours.
The Expressway Project envisages controlling the flow of the Ganga but the state was yet to obtain clearance from both the Water Resources Ministry and the Ministry of Environment. The UP government has not sought the permission from the Surface Transport Ministry, which is mandatory for building highways.
The project claims that among other benefits it would save lakhs of hectares of cultivable land through flood control embankments on the Ganga.
Jaiprakash Associates has been awarded a contract by the Uttar Pradesh Development Authority to build a 1,047-km long expressway connecting Greater Noida to Ballia in the state. The company has deposited Rs 1,491 crore as a bank guarantee for the project. Jaypee Associates will execute the 1,047-km long Ganga Expressway project through its unit Jaypee Ganga Infrastructure Corporation Ltd.
The Uttar Pradesh Expressways Industrial Development Authority has cleared the decks and put the project on the fast track. The group has opened offices in all the 16 districts, through which the expressway would pass and a nodal officer appointed in them all. It may be mentioned that the Jaypee Group, one of the 5 bidders who had come forward for developing the Ganga Expressway, had asked for minimum development rights.
They had also asked for minimum land for development: 30,000 acre, out of which 20,000 acre have been identified in Patiali tehsil in Etah itself, while the remaining 10,000 acre of land parcels have been identified in Allahabad, Mirzapur, Varanasi, Pratapgarh, Rae Bareli, Unnao, and Bulandshahr.
Opposition parties have threatened to launch a mass agitation if the interests of the farmers affected by the 1,000 kilometre Ballia to Noida Ganga Expressway Project were ignored by the State government in Uttar Pradesh. The rehabilitation package announced by the Uttar Pradesh Chief Minister, Mayawati, on 15th January, 2008 while laying the foundation stone for the Project on her 52nd birthday, she attacked the Samajwadi Party for opposing the mega scheme.
The Congress party has described the package as inadequate and unclear. Although the private players were short listed for developing the project but neither the alignment nor the survey of the villages were undertaken by the State. The Detailed Project Report had also not been finalized as yet.
Samajwadi Party (SP) leaders were put under virtual house arrest. SP and BJP along with V.P. Singh’s Jan Morcha had planned a statewide protest against the launch of this Rs 40,000-crore project claiming it would lead to forcible acquisition of agricultural land and ruin the farmers. SP had warned that the Nandigram agitation would be nothing in comparison once the farmers took to the stree. BJP had given it a religious twist by calling it ‘Ram and Ganga bachao andolan’.
UP government claims that large-scale industrialisation will ultimately lead to the setting up of various technical and vocational training institutes which will include 35 industrial training institutes, 20 polytechnics, 10 engineering colleges, five medical colleges and several paramedical schools. These investment regions would transform the area and spawn direct and indirect employment for three lakh people in about 500 large and 7,000 medium and small-scale units. Nearly 500 large and small agro-based industries would be part of the investment regions which would directly benefit the farmers. Traditional industries at Bhadohi, Kannauj and Khurja would get a new lease of life while the expressway project is also expected to be helpful to the economic uplift of weavers and artisans. Besides, it would ensure the revival of ancient cities like Mirzapur and Bithoor.
UP government says, it will also allot free residential plots—150 sq min urban areas and 250 sq m in rural areas—to those whose land would be acquired. Besides, they would be entitled to a 15 per cent quota in the allotment of flats or plots in the proposed industrial pockets.
The Opposition is raising issues like displacement of farmers, fertile land being grabbed by builders and a handful of officials around the chief minister plundering the state’s resources. Government owns only 5 per cent of the land required for the project, so the maximum percentage would have to be acquired from farmers. The chief minister has clarified that builders would require only 30,000 acre of “infertile and wasteland” to set up “investment regions” along the expressway in lieu of huge capital investment.
Ravindra Singh, principal secretary, PWD, who is also the CEO of Uttar Pradesh Expressway Authority, the rehabilitation policy would be implemented by the builders before the project starts. “If it’s not implemented, then the builders would not get land,” he adds. The unique part of the policy is that the land owners would have the liberty to convert up to 10 per cent of their compensation towards their acquired land into shares of the companies involved in the construction of the project.
Samir Gaur, director of the newly formed Special Purpose Vehicle (SPV), Jaypee Ganga Infrastructure Corporation, said work has already begun on the technical and engineering front. "Our technical team is already working on finalising the design and the alignment of the project and will submit its project report soon. On the other hand, work on the land acquisition will start as soon as the alignment of the expressway is finalised. Once we know which villages and tehsils the expressway would cut through, we will start identifying the owners of the land and acquire it."
"Almost 80% of the land along the expressway's path is arid and barren, which is literally, of no use to the farmers. We do not think any farmer would not want to sell of wasteland and get a good compensation in lieu of it, as well as have development and its resultant fringe benefits at his doorstep," added Gaur optimistically.
Regarding the business plan of the company and as to how it is planning the financial closure of the project, which is to be submitted within nine months, Gaur said that this is not going to be an issue. "The important thing that banks see is whether the company is stable. While we have almost 48% equity within the group, around 35% is owned by the banks and FIIs. The valuation of the Taj Expressway project, in which ICICI Ventures is our lead bank, is in itself 25,000 crore. We do not foresee any problem in presenting our financial closure at the right time. Once we start land acquisition, banks will gain confidence in the project and come forward. There is no dearth of lenders these days if any project is viable," he stated.
When asked from which end would work on the expressway commence first, Gaur said, "We will begin work simultaneously from all the 16 districts. The target of completing work in 4 years is very tough and we cannot afford to begin work in phases. For us, it is a 24x7 work schedule, which only can help us in finishing off at the expected time."
Mayawati says, no toll would be realised from the expressway service road.
With the Ganga Expressway project touted to be the biggest investment in the road sector in the state so far, the industry is keeping a keen watch over Jaypee Group's planning and strategy, while sealing and executing the project, which would link the most backward and poverty-ridden area of Uttar Pradesh with the national capital.
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